Spending now, saving later

With the release of new unemployment numbers, there has been a raucous clamor about their meaning. Stronger than expected private sector job growth has many pointing to an expanding economy — especially with the news that most of the job losses last month were temporary census workers.

Even still, a net job loss is a loss. With talk of a double-dip recession and a slowing recovery, it’s going to take more promising news to alleviate the concerns of the American public, especially those without a job. With a multitude of experts interpreting this data differently, it’s no wonder there has been confusion over the numbers’ meaning.

In the end, it seems businesses don’t know how to take the numbers either. During the recession, businesses shed as many jobs as they could to shrink expenses. With the recovery, some began to hire again and expand, but the slowdown has turned optimistic hiring into pessimistic waiting.

Ever since the slowdown, businesses are unsure of the current economic climate. Simply put, the uncertainty of the economy has scared away business expansion and job creation. Without confidence and growth from the private sector, we could very well be headed for a double dip recession.

Businesses need an atmosphere of confidence. To crack the unemployment rate, we are going to have to help businesses so they can weather the current economic turmoil. In order to foster this needed confidence, the administration can do several things.

First, we can stall new regulations. While many of the recent regulations are consumer friendly, they are not necessarily business friendly. Allowing businesses to accommodate to recent regulations without any new bureaucratic rules will allow them to focus on the front lines of economic expansion.

Second, we need to give businesses a hand again. Businesses need assurance and support if they are going to expand in this market. Some options are targeting job costs to businesses, such as a break in payroll taxes, having part of their unemployment expenses funded for those they have to lay off or even having employee benefits partially funded. Essentially, a strong backing of funds from the government will allow businesses to have the confidence they need to grow.

There are costs to these programs, and historically, we know this cost all too well. Debt in America is a serious and looming issue. We cannot forever ignore the increasing debt, but in dire times we must prioritize our objectives.

In this economy we are faced with two possible scenarios —  it gets better or it gets worse. The sooner our economy gets better, the sooner we can tackle more pressing issues. But while our economy suffers, it will be increasingly difficult for us to address the debt issue. A much more pressing matter than the bureaucracy of this process is the livelihood of thousands of Americans without jobs.

We must boost employment by spurring business growth through increased government spending. Then we can begin to look toward another recovery.