Jobenomics - The bomb shelter for your investment portfolio- written by John McCain's former economic advisor, unviels the true economic meltdown we will face if we do not create 20,000,000 new American jobs in the next 10 years.

2. 45 million are Medicare beneficiaries.

3. 59 million receive some form of Medicaid.

4. 37 million fall below the poverty level.

5. 35 million receive food stamps monthly.

6. 35 million work for the government (22 million civilians, 10 million government contractors, and 3 million in the armed forces).

8. The goal for small, emerging and self-employed is 7 million. This sector is currently under-exploited. With government hiring incentives, low cost loans, tax deductions, and other support, this sector should flourish.

9. Large business’ goal is 5 million. The emphasis for large US multinational corporations is on increasing the US expatriate community offshore, as opposed to reshoring jobs back to the US. American business growth is expected to be robust in emerging countries like China and India, and it is important that millions of US expatriate business persons exploit these growth opportunities.

10. Likewise, the US should aggressively attract foreign businesses to the US. Jobenomics believes that 3 million new US jobs with international corporations in America is a very reasonable goal. There are ample opportunities in emerging China and India to develop subsidiaries in the US.

12. Tyranny of Trillion$: Debtor Nation—the financial Sword of Damocles.

13. Recovery Scenarios—the future V-, W-, or L-shaped recovery scenarios.

14. Challenges, Issues and Indicators—the potential storms on the horizon.

15. The Way Ahead: Job Creation—the way back to prosperity and economic security.Job, wealth and revenue creation is the top priority for America. The tyranny of hundreds of trillions of dollars of debt and obligations will dramatically change America, if we do not produce our way out of it. In addition, numerous potential international and domestic crises could derail our nascent recovery. Jobenomics addresses the issues of debt and potential crises as part of the overall strategy to produce jobs, wealth and revenue, even in austere times.<br />Chuck Vollmer<br />10 May 2010<br />Vienna, Virginia<br />Employment versus Unemployment<br />Chapter 1:Employment versus Unemployment<br />Figure 3: Chapter 1 Summary <br />Employment, as opposed to unemployment, is the central issue facing future US prosperity. While the unemployed have a higher emotional quotient, the employed provide the staples (wealth and revenue) for individuals, families and government to prosper. Unfortunately, employment is in a stealth crisis that needs to be illuminated and addressed.<br />Today, America employs 106 million people in the private sector, out of a total population of 309 million. 15 million are officially unemployed. It is the unemployed who get the lion’s share of the attention. While caring for the needs of the downtrodden is a moral imperative, facilitating employment expansion is an economic imperative. Employment expansion also serves the needs of the unemployed. The saying that “the best defense is a good offense” applies. If the ranks of the employed are increased, the numbers of unemployed are likely to decrease significantly as new job opportunities are created, especially if these jobs are added to the base of the socio-economic pyramid, which is most represented by small businesses in the private sector. Increasing government jobs or make-work jobs will not help, since these actions will eventually add to the tax burden of the private sector employed.<br />As this chapter will address, the official unemployment numbers and rates are subjective statistics that are mostly misunderstood, and frequently misused, by policymakers, opinion-leaders, economists and investors alike. America should focus on the job, wealth and revenue producing elements of our society, at least as much as the unfortunate or dependent elements of society. It is imprudent for government officials to use unemployment statistics as the driving-force in policymaking. By focusing primarily on unemployment statistics, policymakers are trying to steer the ship of state by watching its wake. Unemployment is a symptom caused by the lack of viable employment opportunities, or a lack of a willingness to work. <br />In order for the US to prosper, the focus has to be on those employed in the overall private sector, whose rolls have decreased about 13% in the last decade as a percentage of population. Private sector industry has two components: goods-producing industries and service-providing industries. Of the two, the goods-producing industries secure the base of the US economic pyramid, since they produce tangible goods.<br />Manufacturing is the primary element of the goods-producing industry. It has been the bulwark of Americana since the industrial revolution. However, this is no longer true. Private sector manufacturing has decreased 55% in the last three decades as a percentage of population, and has decreased from 1/4 to 1/8 of the US economy. Over the same time period, American consumption of foreign manufactured products has increased from 1/10 to 1/3.<br />Can the US exist without manufacturing? Yes, but America will be subject, to a much greater extent, to the will of foreigners, like the Chinese. Consequently, employment erosion is not only an economic issue, but political and security issues as well.<br />The key to prosperity depends on creating new jobs. America needs to increase its workforce from 106 million to 126 million by 2020. 20 million new private sector jobs by 2020 is an achievable goal, which is the central subject of jobenomics—the economics of job, wealth and revenue creation.<br />Something has gone terribly wrong. For the first time since the Great Depression, the US economy lost a million jobs in the private sector over the last decade.<br />After sixty years of economic growth in America, jobs creation has stopped. It seems that both public and private sector Americans have been so lulled by decades of prosperity that they are lackadaisical about US jobs creation. The economic crisis serves as a wake-up call. Policymakers and opinion-leaders are beginning to talk, but little of significance has been done. Rhetoric is good. Finger-pointing is not productive. Foresight is preferable to hindsight. Action is paramount.<br /> <br />Figure 4: No New Private Sector Jobs in the Last Decade <br />Figure 4 shows a sobering and terrible story—America experienced a lost decade in the 2000s from an employment perspective. If the economy repeats this performance in the 2010s, the American economy could be seriously damaged or even collapse.<br />The American economic engine lost almost a million private sector jobs in the last decade, compared to gains of approximately 20 million new jobs in recent decades. Some would assert that the 2000s started with a recession, ended with an economic crisis, and the worst of the storm has passed. Optimists believe that the employment picture will naturally improve as our economic recovery progresses. Others would point out that the 1970s and 1980s each experienced two recessions and continued to create jobs. They would also argue that the US employment crisis could worsen, due to international competition, domestic business malaise, chronic unemployment, and failed government policies. What was lost will be hard to regain in a sluggish economy and less competitive workforce. Many of the 8.4 million jobs lost during the Great Recession (2008-2009) will simply not return as industry has downsized because of international competition, a flagging economy, chronic unemployment, and US anti-business sentiment.<br />Nobody really knows what the future portends. Everyone is wondering what can be done to start the jobs engine again.<br />The key to jobs creation begins with understanding the US work force. To start, let’s look at the differences between the 1990s and the 2000s—the lost decade. Figure 5 shows the month-by-month difference in jobs growth and losses as recorded by the US Department of Labor (BLS) over the last two decades.<br />Figure 5: Employment Growth per Decade <br />The decade of the 1990s had 17 down-months where employment decreased, and 103 months where employment grew, for an upward percentage total of 86%. The average monthly employment gain (jobs creation) was 180,000 new jobs. Total jobs growth over the entire decade of the 1990s was 21.7 million jobs.<br />The decade of the 2000s had 51 down-months where employment decreased, and 69 months where employment grew, for an upward percentage total of 57%. The average monthly employment loss was 8,000 jobs. Total job loss over the entire decade of the 2000s was 944,000 jobs.<br />