In honor of Joe Huffman, who taught me to ask the One Big Question...Joe's a bit busy this weekend, so I'll iterate what he would say if someone asked him the One Big Question which has formed in my mind.
Simple question, that.
It seems that we are about to decide the policy direction of our Nation based on one little word, "Jobs", but has ANYONE stopped to ask what a "Job" actually is, how it is properly defined, how the statistics about "Jobs" are actually derived, and whether ANYONE ever checks those statistics for accuracy?
I might not be an economist, but I have dealt, to some degree, with the idea of budgeting. In budgeting, we have a concept called "Full Time Equivalent". At any sizable organization, public or private, that employs people, there is a standard definition of what it costs to have one person perform work, and that is the FTE.
Basically, the FTE is what one "standard" person draws as a wage, together with the value of that person's economic benefits (vacation days, health insurance, etc), over a period of 2,080 hours (one standard working year of 52 forty-hour weeks). My FTE, just before I retired from copping, was just over $90,0000. That was a wage of $28.56/hr, plus annual benefits running to just over $30K.
So, for full-time employees, the costs are fairly easy to break down. The tricky part is how to measure less-than-full-time work.
That's NOT tricky if fractions or decimals of an FTE are used. The average US wage (Median wage, to be accurate) last year was $26,364. Just search on "average US wage", and you will get all sorts of sites which display the statistic, and tell you how it was derived.
Why then, does the Government "play" with the figure so loosely? Here's an example of "playing". With "Job Creation" now the measure of whether a candidate "has it in him" to be President, why haven't we demanded, and gotten, a precise definition of what One Created Job actually is?
Here's what "One Created Job" ought to be: One FTE, measured against the last, accurate US Median Wage, projected as if that job lasted one year. A couple of years ago, when the "stimulus" was the big topic of discussion inside the Beltway, and "shovel-ready jobs" were being "created", I remember reading that the Obama Administration was claiming One Created Job for every job opening that lasted 15 days or more. Of course, that's crap. No two-week job ought to ever be compared to a full-time position.
Since we all have calculators, let's do the math. Taking $26,000 as the annual wage in question, and adding in, say, $10K in benefits, we have an FTE for those "shovel-ready" jobs of $36,000, or $3K/month. If those jobs only last, say, 3 months each, then each one is 0.25 FTE, and the base earning is only $9K for each job. Did YOU ever see those jobs listed that way? I didn't. That same Obama Administration (and, likely the Bush II Administration before it) claimed Christmas Seasonal workers as "created jobs" every Fall, despite the fact that those jobs never last past the middle of January, and are less than .25 FTE each. Same thing with Summer Seasonals, etc
The Government (and candidates to run it) lies, and our entire National future is being decided by this particular brand of lie.
Let's ALL go activist on the political process here, and demand that ANYONE who uses Job Creation in any sort of political statement be REQUIRED to prove out how many actual FTEs he/she is referring to, and what the actual dollar figure of that FTE actually is.
Can we do that, people? I think we can, and I expect THAT sharp saber, if universally used, would deflate a LOT of political hot-air balloons, if not ALL of them.
You have your assignments. Attend political rallies, and at the right moment, shout the One Big Question at the candidate(s): "Sir, what is YOUR definition of a Job"? I guarantee that the pretenders will NOT be ready to answer you, so YOU be ready to repeat your question.