My personal Zen moment interviewing.......

I was going to write concerning the dire need for a comprehensive energy policy, and with Obama's concession to the Republican forces this week, am motivated to do so more than ever.

But I want to take an experience I had this week, bring one back from the past, and blend it into the thread of thought regarding our economy and quality jobs.

I worked in industry, specifically, manufacturing, and made a fair bit of money doing it. I left a job of which I was extremely fond because despite the wonderful work, my boss was abusive. After nine years, I found a suitable replacement and only lasted three years there, because much the same irresponsibility occurred as in the other small companies where I worked.

Due for a change, I visited a friend who was a former school board colleague to see what he thought I should do. He was working Human Resources in the School System we both served. I noticed on the wall a poster for a $1000 signing bonus for anyone who could teach in the field of Industry Technology. Since I had a degree in that field I mentioned it to him. Within a few hours, I had interviewed for a teaching position in our newest High School, and found out the very next day I could have the job if I wanted. In parallel, through Monster.com I was asked to interview for a job consulting with a company who had a position 70 miles away in Lynchburg, VA. In the consulting world this is gravy since travel was minimal and the pay extremely good.

So, given I had two job offers, a high-class problem looking back at it, what would I do? The consulting job paid more than three times the teaching job. I hated consulting so even the disparity was not the final decision factor. What finally drove my decision was this: I worked in industry for over 25 years, I had put forth several ideas for the curriculum, I had some training experience but was offered only the entry level salary as a first year teacher. Because I didn't fit the mold of a veteran "shop" teacher, I could get no credit for what I could bring to the table.

Fast forward to this week. I decided to apply to Home Depot to see if my multiple skills in the trades, wiring, plumbing, construction, etc. could be applied to helping others find the right tool, part, or material to do their project. It could be fun. Make a little money as well.

I applied on line through a series of questions and attitude tests to see if I had the proper mindset for retail. A call followed with a offer of an interview. I arrived early and scoped out the store to see the state of the department they mentioned in which I might work. I went to the office and met the Operations Manager who would conduct the interview.

We were about to launch into a structured interview, one that takes 45 minutes or so,when I asked if she had looked at the answers I provided on line. She told me they did not share this information with her. I asked a series of leading questions relating to pay, advancement, and reporting structure. Then I politely terminated the interview and left. She informed me there was no provision to start someone above their entry level salary, and the next monetary review was in 12 months. What they were offering was less then my step-daughter was offered with no experience at a well-known electronics retailer. One also should note this was a part-time position with no benefits (or benefits cost!). My Zen studies guided me through the emotions to a rapid calm.

Both these experiences have in common that the employer, rather than consider paying for quality employees, would do things by the book. Easier to deal with turnover than create quality well-paid positions.

Our economy is now significantly driven by the retail industry. The jobs generally pay poorly. They require no previous skills and if they are done right can be challenging (that is, dealing with the public). What I was offered would have netted me as little as $100/week. This is because between having my pay would have been taxed on top of my wife's, and the cost (plus time) of even the modest commute required.

My experience is not isolated. Several family members have suffered this route. We can not believe that this economy, based so much on this industry (if you can call it that)can be healthy, when the jobs are poorly paid, add no significant incentive for quality personnel, or add no real value. I am heartened each and every time I find a quality product made in this country, particularly when it is competitively priced. I recently bought some hard cases for use on my motorcycle and was thrilled at the quality, price and that they were made in the US.

I am not a raving protectionist, suggesting we cut off foreign imports to harbor poorly run industries. What I am suggesting is that we take the time to look at the long view. Make investment in industry that creates quality jobs. Pay people a living wage. Train them to add more value. Anything else is a losing proposition.

When I take on the energy issue, we will find one of the places to make that investment.

Again, not so Zen

I decided to tackle discussing something that I have been pondering for awhile, and as my customary proviso I am stating that this probably isn't a new idea. It deals with the economy, and why we are in for a long period of adjustment. In previous installments I commented on the state of manufacturing in this country. That we must embrace bringing it back, at the same time recognizing the total cost of products produced and sold.

Something beyond over speculation in real estate, bank irresponsibility and a service based economy with it fits and starts has caused the stall we are seeing. What has held the stock market at bay for 10 years. Sane indicators on the stock market, using traditional measures, indicate the market is at a proper level. Take for instance GE, the first stock to be put in the Dow Jones Industrial Average. It is trading at about $17 with earnings per share at a price/earnings multiplier of 16.

So why the stagnation in growth compared to the 1980's through 2000? I believe it was caused by reaching saturation of two income households. If you look at data about traditional households (defined by married couple, one income earner, children) the percentage fell from 24% of households, to a 7% and has held for several years. This was over a period from 1970 to 1995. In addition, in households without children over this same period, two income households remained relatively stable. This indicated that as a second income entered into the "traditional" household it feed unprecedented growth, because it was mostly discretionary money. Money above and beyond needed for the basics of housing, food, clothing, a car. The data would also suggest that it may have fed inflation in the late 70's as oil and other natural resources were taxed to support this expanding economy (as well as the instability in the Middle East). Productivity gains made in the early 80's through the emergence of computer technology into a basically service economy and stabilization of the markets in oil calmed inflation following a tightening of credit by the fed.

What am I getting at with all this analysis? That now we have reached saturation of the two income households, we are likely to return to the lower rates of growth (or perhaps less due to lack of a manufacturing based economy)that preceded the 1980's.

I think the expectation for return on the stock markets the reflect the economy are going to have to be adjusted. In addition, I will continue to beat the drum for investment back into a manufacturing based economy. There are data that suggests that follow-on spending from manufacturing far exceeds that which is caused by a service economy. Data also suggest that jobs pay better in manufacturing. I have argued that it acts as a flywheel damping the spin up and down of a service-based economy. We are seeing the disappearance of the middle class due to all these factors.

I have also beat the drum for another action that needs to be taken. It transcends the health care issue, terrorism, and all that is heard and seen on the news. I will take that on next time. But here is a preview in one word: Energy.