John Lounsbury's  Instablog

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Paul Hanly Comments (835)
 
The area with the highest unemployment is construction, an industry with large numbers of relatively lower educated people but with good practical skills.

Unemployment is much lower for morely highly educated people.

This is another reason why the US ought be rebuilding its oldest bridges, renovating schools and building updated science labs, halls and gymnaisums, building public transport etc while the labour force with the right skill set is available.

I have had the pleasure of meeting a number of well educated young Americans over the last few years and they were smart, pleasant and willing with excellent computer skills.

If the Army can't teach otherwise good candidates year 9 maths after induction on a probationary basis there is something wrong with the ability of the army to solve problems!

Hiring people with the right attitude and intelligence on the basis of their undertaking and passing certain courses at a local community college would be my suggestion. Lower pay until gaining the required skills and then a payrise is the offset.
4 Jul 2010, 03:38 AM Reply Like

K202 Comments (3672)
 
John - You already know some of my views on the educational system's failure, so I won't readdress those points. At some point, if the federal, state and local governments want to make a positive difference in young peoples' lives and help prepare the economy for further future expansion, they might consider offering more adult education programs for those who really need basic literacy and math skills. I think a second chance may be the only path to a productive life for many of our high school graduates (not to mention those who dropped out) of all ages. At least it might get some of them off the streets and reduce the looting and damage to the thousands upon thousands of vacant houses. And maybe, just maybe, it could provide some with a little more self respect and hope for their futures.
4 Jul 2010, 04:43 PM Reply Like

Paul Hanly Comments (835)
 
First let me say I am not in favour of vandalism and looting of house (but with 16% U6 I am not surprised by it either).

Second, I agree that trying to get people into basic adult education to increase their life skills and job prospects is a good idea. (which makes me wonder about why closing schools and sacking teachers is being tolerated).

Third, here's an unusual view on looting and destruction of abandoned houses.

That vandalism is destroying the excess housing stock. The excess housing stock is one of the causes of house prices being low. As the excess is occupied or destroyed population growth will create demand for additional housing.

The more stock that is destroyed, the sooner demand will start to balance and then outstrip supply of housing.

Then construction will start again, employing more people and GDP will grow.

The magic is that the looting and vandalism will bring forward the growth in GDP. The vandalism and looting that is destroying sometimes perfectly good housing is not causing any deduction from GDP. This is one of the many flaws in GDP measurement.
4 Jul 2010, 09:49 PM Reply Like

K202 Comments (3672)
 
Paul - I have thought of the same thing and agree that looting, while generally is not a good thing, it may help in this instance. I just wish the vandals could be a little more discreet in choosing their targets. We just bought a four-plex a few weeks back. We went over to take a look and make a detailed list of repairs we needed to do before we could start renting out the units. From the time we bought it to the time we were prepared to start the rehab project, all the pipes had been torn out, 23 relatively new windows (one of the main reasons I wanted the property because of the updates) had been torn out, and all the fixtures in the bathrooms and kitchens had been destroyed. The destroy cabinets, sinks toilets, tubs, etc. Only about half of the fixtures that were destroyed provided access to the pipes, the rest were destroyed for fun. The property still has significant value and I had bought it way below market, so I'll still repair everything and end up in decent shape on the project because there is a growing demand for rental apartments in the area.

I know that what I wish for is just not possible, but I can still wish can't I. Or is that against the law now, too?
5 Jul 2010, 11:20 AM Reply Like

Paul Hanly Comments (835)
 
Must have been heartbreaking! The micro story is always much more painful and personal than the macro one.
5 Jul 2010, 12:52 PM Reply Like

K202 Comments (3672)
 
Paul - Thank you for your empathy. We own more than 110 properties of which over half have been ravaged in similar fashion at some point. Sometime they wait until we've already remodeled and are just putting the finishing touches on a property before they strike. That is the most painful. It has become more of a macro view for me personally, but we'll survive. The ridiculous thing in all this is that sometimes they go solely for the copper. And they can't be getting more than $25-30 for all their efforts because we use as little as possible now. So they smash up everything else in their frustration. Those are the ones that hurt the most.
5 Jul 2010, 03:49 PM Reply Like