“After a cyclical boost early this year, the current state of the U.S. economy is unimpressive: modest growth, high levels of unemployment, stagnant wages, low levels of consumer and business sentiment, and volatile financial markets. Extrapolating from recent data, many predict only a middling recovery in the next several years. They call it “the new normal.” I call it the new malaise.

The prevailing theory has it that U.S. policy makers should not deny our foregone fate. We should accept smaller improvements in output and employment and productivity. We should resign ourselves to the new normal and conduct policy accordingly. That is the last best hope, they argue, to preserve the remaining vestiges of a golden age that is no more.

I reject this view. I consider this emerging ethos to be dangerous and defeatist and debunked by America’s own exceptional economic history. Our citizens are not unwitting victims of some unavoidable fate. The current period of subpar growth and high unemployment is real, but it need not persist. We should not lower our expectations. We should improve our policies.”

The view Warsh refers to is one where high unemployment and mounting deficits causes the American people to accept a lesser lifestyle. This is the view many politicians and pundits say is inevitable. I am not ready to agree and was happy to read Warsh’s opinion.

We should not lower our expectations.

In past times of high unemployment, we heard President Carter speak of a ‘malaise’ that had taken over our country in 1979, and later we heard Reagan describe a ‘light on the hill’. Carter’s message was designed to take us away from one condition and Reagan’s message proposed to draw us to a concept of success. While Carter’s message didn’t help, Reagan’s gave hope and helped a great deal.

In today’s times, forget personal politics just think of who we are as a people: we like to be challenged, move forward and reach a goal. Our country has been mired in wars and tough economic conditions for the past two years, add the policies of our current administration and there is so much negative noise. And to boot, business is not moving, and jobs have been lost and not replaced. We must hope the ramifications of this past election give room for our leaders to do what is necessary to get our house in order.

To improve the market and state of employment, it starts with expectations. We, as a people must expect to thrive. Yes, we are challenged however we must know that with the proper plan in place, executed appropriately, we can expect to succeed.

We should improve our policies.

Boy is this right. Most of the economic policies of our government since the first depression suck. Who thought we could take a portion of everyone’s paycheck, promise to take care of them for the rest of their lives, use the money to pay for who knows what, while understanding the demographic changes post baby boom and still think ‘this will work’? We see the same thing upon us in private and government pensions. The problem is we have taken short-term fixes without considering long-term consequences. Maybe, just maybe, we can get by all the partisan politics and force our leaders to lead with one thought in mind: long-term economic growth and competitiveness.

We need greater responsibility.

The money and talk out of Washington is deafening and sickening, especially when the results are lacking in job creation. And the blame hits all of them. Warsh suggests we improve our policies and I agree. The feeling over the past couple of years to small business is that we have been asked to go on a basketball court, using hockey nets instead of baskets, and have been handed Frisbees with Lacrosse sticks and told to play a game with referees who keep changing the rules. We want to play basketball with a ball, nets, the old rules and referees we trust. If improving policies leads a “game” with clear rules and is established by leaders we trust then we could see a 180-degree turn in the economy and companies will start hiring. Based on discussions I’ve had and heard with business leaders, everyone is ready.

We need more jobs, we expect an improving economy and an improvement in current policy – the quicker the better and if the new group of leaders doesn’t do it, the American people will find leaders who will.

Three Keys To Economic Recovery: Strong Expectations, More Responsibility, Better Policies is a post from: Glassdoor Blog

Related posts:

1. Clearview Counterpoint: Should Employees Downgrade Job & Salary Expectations For Next Few Years?
2. Does The Glassdoor Employment Confidence Survey Bring Good News?
3. Employees Mixed On Expectations For 2011 Raises; Reported Layoffs Fall Yet Cuts To Health And Dental Benefits Rise

With summer upon us, so is the summer vacation. As one of the largest household expenses this time of year, this is one area in which many people are cutting back according to a survey commissioned by the career website Glassdoor.com and conducted by Harris Interactive^®.

More than half of U.S. adults (52%) say they are modifying their summer travel plans in certain ways compared to last year. While nearly three-quarters (74%) say they traveled last summer only 60% say they plan to travel this summer. Of those who do plan to travel, nearly half (49%) are planning to travel less or take more work with them, one-third (35%) will spend less money and nearly one-fourth (22%) will take shorter vacations and travel shorter distances.

It’s not surprising that people unemployed might be cutting back on travel more than others, but we noted even employed adults who have watched others be laid off at their companies in the past six months were cutting back on travel more frequently than those who work for companies that haven’t had layoffs. As you can see from the chart below, nearly half (46%) of those who plan to travel this summer and work for companies that have laid off/communicated plans to lay off employees in the past 6 months plan to spend less money on holiday travel than they did last year, nearly one third (32%) plan to take a shorter break and nearly 29 percent plan to travel shorter distances.. 

Only 7 percent of U.S. adults who plan to travel this summer plan to spend more on summer vacations this year, and just 10 percent plan to take longer vacations than they have in the past.  While this is good news for those who fall into this category, it’s also interesting to note that only 1 percent say that they will not bring work along. Does this mean 73 percent will?  Hardly sounds like a vacation, and after the last economic year, we can all probably use a real break. 

We’ll be releasing the full results of the Glassdoor.com Employment Confidence Survey next week.  For full results and survey methodology for this portion of our findings, please contact pr@glassdoor.com  

Layoff Effect Dampening Already Depressed Summer Travel Planning is a post from: Glassdoor Blog

Related posts:

1. Employed Layoff Survivors & Unemployed Cutting Back On Gifts, Travel & Parties This Season
2. College Students Face Summer Job Gap: Unconventional Tips To Landing A Summer Pay Check
3. Keep The Heat On Your Career Or Job Search This Summer

The pervasive job-losses, deepening recession and credit crunch we are all facing today make it harder and harder for people who are living, or expecting to live, on the severance packages being offered today. Companies tend to want to provide lump sum severance payments so they can take the full accounting charge in the current quarter and move on.  However, many companies recognize these are different times and may be willing to work with you to assist in the transition and provide some type of employment verification grace period while you get your life in order. If you’re an employer; it’s the right thing to do.  Remember that while we call them severance or separation packages, what they are meant to be are job transition money and in this time where the transition will be longer than expected, employers can really help out just by being a little more flexible than usual. Even if we see a layoff coming – which most people don’t — it’s hard to not be taken by surprise at least a little, and having even a few extra weeks to think through all of the details can make a big difference.

Below are a few tips and “asks” you can use in negotiating your separation:

• Always take the time to seek counsel to understand separation agreement – Your employer will likely want you to sign an agreement before they extend any severance or other separation benefits. Your employer will offer you the time to talk to a lawyer before signing the release agreement. Take that time. It’s important you have a lawyer or advisor look over the document to make sure you understand everything. And, remember; don’t sign anything until you have made all requests to make the process easier, such as those below.
• Ask for employment and salary continuation versus a lump sum severance payment. Severance usually represents the equivalent salary for a period of time (for example, six weeks or six months).  Companies often disperse this as a lump sum payment because there are accounting benefits.  However, staying on the books gives you the benefit of time to take care of other business that may require employment verification.  For example, one company I am aware of kept an employee on the books for several weeks so the employee could complete a refinance of their home.  If you can’t convince your employer to provide salary continuation over a lump sum payment, then think about getting a financial advisor or bookkeeper to help you manage payments to you on the same schedule and amount that you have been used to in the past.  You want to try and keep as many of the routines that you had before in place.
• Request your benefits to continue through the time of the separation package. Regardless of whether you are successful in extending employment, you should ask that your health and dental benefits be extended through the  ending date of the time of your separation period.  For example, if you receive 3 months severance, request your benefits be continued for at least the same 3 months.  This helps to reduce out-of-pocket costs and delays COBRA from starting the 18-month clock.
• Ask to be an active employment status in company’s system until separation pay and/or period ends. If you are technically still on payroll, this will help make sure that anyone verifying employment gets a “yes they are employed here” answer.  Similarly, you should request “rehire” status be “yes” when you are finally terminated.  Since you never know who might ask and who might be answering the phone, be sure it’s noted in your file that the company would rehire you at a later date.
• Ask for continued access to on-site services and benefits. Perks such as company gym can go far in preserving your lifestyle and health, not to mention keeping expenses down.  It never hurts to ask. If you are positive in your attitude about the company you are more likely to get this extended for you.
• Ask to be considered for project work in exchange for extending separation period.  Make yourself positively available to come in and help out as needed shows you want to work with the company by helping them to help you. It can keep you busy and add compensation to your bank account.

Lastly, if you’ve been laid off, remember you are not alone.  Millions of others have also been affected by the tightening economy.  There is not shame in being caught in a layoff. These are unprecedented times but it’s important to always remember, you are talented and you have the strength and ability to get through to your next job.

If you have thoughts, questions or comments, I’d love to hear them.

Navigating a Layoff: Tips for Negotiating Your Separation Agreement and Getting the Most from Severance (Employers Listen too!) is a post from: Glassdoor Blog

Related posts:

1. Negotiating Severance Packages—A Refresher
2. Employers Listen Up: Communication is like cash…
3. Overcoming Layoff F.E.A.R.s – Part One: Financial Fear