Thursday, January 27, 2011

Fudging the unemployment numbers

When the news media reports a drop in the unemployment rate, it doesn't always mean the unemployed found work.

First, those who collect the unemployment statistics must know exactly who the unemployed are so they can be counted. The laziest way to figure that out is to look at everyone who is registered for unemployment benefits, and are actively calling in to collect their bi-weekly unemployment benefits.

Unemployment benefits run out. So the unemployed who still can't find work, can't collect anymore benefits, so they disappear from the database and are no longer counted.

If an effort is made to keep an account of the unemployed who no longer collect benefits, sooner or later their numbers must drop as they must leave the community to find work elsewhere.

When this occurs, the employed, which is a fixed number of workers can remain the same, and the statistics will still show that unemployment dropped.

So, if you're planning on starting a business in a community that shows a rapid improvement in the unemployment rate, watch your wallets, your likely moving into a trap.

Monday, January 10, 2011

The Illinois economy is finished.

Colleges are training nurses, the nurses are doing their time at local hospitals until they can move on to more attractive climates.

One University of Illinois at Springfield professor gets paid a six digit salary, but he doesn't stick around central Illinois. Why the hell should he?

The city of Springfield is desperate to keep the engineers at the local power plant. They have to be paid huge salaries just to stay.

What is it about central Illinois that is so unattractive to the intelligent people?

Is it high taxes? No. that would be a lie.

It's the shitty business practice of only paying minimum wage.

Attractive communities are dominated by highly paid individuals with large disposable income, and little need for social services.

State, county, and municipal governments in Illinois are being forced into raising taxes so they can pay salaries that are high enough to keep smart people around.

There are very smart people who work in the private sector, but you won't find them in central Illinois.