A Tip for Business Owners Navigating in a “Jobless Recovery”

The economy is sending mixed signals — which at least is an improvement over just a few months ago.  Newsweek reports today that “the Fed has become both more optimistic and more pessimistic,” with GNP expected to recover slightly more quickly than previously expected, even while unemployment creeps slightly higher.  The term “jobless recovery” is being attributed to Fed Chairman Ben Bernanke, although the term actually was floated by a Senate Republican in a private discussion, and Bernanke responded only that “it could be.”

The bottom line is, whatever you have left in your retirement fund may start growing again, but if you’re looking for a job you’re still hosed.

The irony, of course, is that job creation depends on business confidence, which depends on economic growth, which in the long run depends on… higher employment levels.

will_write_for_foodSo for all you business owners looking to implement plans you’ve had on hold, if you’re still understandably wary of taking on new headcount, I have a solution:  Hire an independent consultant on a contract basis.

Contracting with a consultant is a much smaller commitment than hiring an employee, and your dollars will go further.  An independent consultant will know that he or she has to hit the ground running, so you can get a faster payoff on your project.

Huge consulting firms often use a senior partner to convince you to sign a contract, then assign twenty-somethings to do the actual work.  But with an independent consultant, the person you seal the deal with will be doing the actual work.  So don’t be put off by the fact that the independent consultant may be a little older — a greybeard, so to speak. You’re not buying all those years of experience, you’re just renting them.

This message is brought to you as a public service by KirkPetersen.net LLC.

(Disclosure: Photo is a composite — NOT created by the Web Goddess, who has actual Photoshop skills)

It Didn’t Work the First Time, So Now: Porkulus II

At The American, the Journal of the American Enterprise Institute, Phil Levy writes:

slow_d16As unemployment rises ominously toward 10 percent and the economy continues to appear listless, leading economic voices have begun to call for a second fiscal stimulus. The first stimulus was controversial among economists; it seemed to discard a great deal of what had been learned about macroeconomics in recent decades. The calls for a second stimulus seem to discard logic altogether.

Keep in mind that the first time around, we were told that the porkulus bill had to be passed now now now now now — not a day to spare if we want to ward off catastrophe.  So Congress passed a pork-laden bill that included hundreds of billions of dollars that will not be spent until 2011 or later, and thus have no stimulative effect now.  And after  the bill was rushed through so quickly that there was no time for legislators to even read it, let alone have a thorough debate — the President waited four days to sign it.

Levy’s conclusion:

And this is exactly the logical problem with a second stimulus. If we accept the premise that the Democrats did the best that could be done and exhausted all stimulative spending possibilities for 2009 and 2010 on their first try, then there’s nothing left to be done in a second stimulus. Additional spending would just pour uselessly into the out-years. If there are still good near-term options available to be funded by a second stimulus, that just speaks to the poor design of the initial stimulus package that passed them over in favor of ineffectual spending years later.

Neither of those possibilities argues for opening up the public coffers for hundreds of billions of dollars more.

It Turns Out Today Is My Blogiversary

blogiversary2

It must have been embedded in the recesses of my memory, because something just made me check the archives.  It was one year ago today that I made my first substantive post on this blog.  (The first of a handful of frivolous posts was more than five years ago.)

I led with a snarky prediction that presidential candidate Barack Obama “some day could become an important senator.”  That turned out to be wrong — he went straight from first-term senator to president.  But other than that I think the first post holds up reasonably well.

I would be honored if you read the whole thing, but since most people don’t click links, I’ll paste the concluding paragraph here:

So I still prefer McCain as commander-in-chief, but I take comfort in the overwhelming evidence that Obama is a politician. Politicians know how to maneuver around unwise campaign promises, and how to avoid being held hostage by their political base.

Rethinking an Israeli Attack on Iran’s Nukes

London TimesOnline logoWill the Sunni Saudis side with the Jews against Shiite Iran?

The Sunday Times today reports that Saudia Arabia has quietly let Israel know that “that Saudi Arabia would turn a blind eye to Israeli jets flying over the kingdom during any future raid on Iran’s nuclear sites.”  Israel’s Prime Minister promptly denied it.

But it makes sense, given that the Saudis and other Arab countries are fearful of a nuclear-armed Iran. This may affect my earlier belief that Israel would not attack Iran anytime soon.  Israel flew back and forth over Saudi airspace in its 1981 strike on Iraq’s nuclear reactor, but flew low to avoid Saudi detection. I assumed it would be too risky to do the same for the much-longer flight to Iran, but if the Saudis were on board …

Ironically, Saudi cooperation in this way would increase the chance of a confrontation between Israel and the United States.  A glance at the map on the earlier post shows that a Saudi flight path means the Israelis would fly across the entire width of U.S.-controlled Iraqi airspace, whereas the Turkey route would send the planes over only the northern tip of Iraq.

The Whole World Celebrates America’s Independence Day

Big Ben July 4As a big fan of the concept of American exceptionalism, I’m always happy when our country gets its props in the broader world.   So I was glad to see a CNN item about July 4th celebrations around the globe, organized by Yanks living away from home in cities like Buenos Aires, Sydney, Rome and London.

If I recall correctly, our July 4 holiday originally had something to do with throwing off the oppressive yoke of British imperialism.  Nice to see the Brits have a chance to get in on the fun.

The article started with a snappy lead: “(CNN) — Hot dogs? Check. Fireworks? Check. Big Ben? Wait a minute…”

Cool, I can get a nice light holiday blog post out of this.  I bet I can fire up Google Images and find pictures of fireworks at Big Ben… Check!

All right, let’s flesh this out… oops.  Turns out this is one of those stories that journalists describe as being “too good to check.”  CNN helpfully links to the website for the London celebration … but a visit to that site reveals a couple of problems.

First, the celebration is at Battersea Park, which looks quite nice in the pictures but turns out to be not particularly near Big Ben. Second, the fireworks got canceled at the last minute.

But hey, the Big Ben picture really is snazzy, and the celebration will continue, from my hometown of Maplewood to London and around the world.  Happy 233rd Birthday, America.  It’s been an extraordinary journey, and I’m convinced there are plenty of good times still to come.

(Photo: Getty Images)

Pace Bolton, I’m Betting Against an Israeli Air Strike on Iran’s Nuke Facilities

OsirakLocation

Osirak was quite a hike, and Iran is even farther

In today’s Washington Post, former UN Ambassador John Bolton stops just short of openly rooting for Israel to take out Iran’s nuclear facilities:

Iran’s nuclear threat was never in doubt during its presidential campaign, but the post-election resistance raised the possibility of some sort of regime change. That prospect seems lost for the near future or for at least as long as it will take Iran to finalize a deliverable nuclear weapons capability.

Accordingly, with no other timely option, the already compelling logic for an Israeli strike is nearly inexorable. Israel is undoubtedly ratcheting forward its decision-making process. President Obama is almost certainly not.

The usual suspects are outraged. One HuffPo commenter said “I would take foreign policy advice from Ronald McDonald before I would take advice on where to buy a cheeseburger from John Bolton.” (Much as I disagree on substance, I gotta admit that is a pretty good line.)

John_R._BoltonBolton is nothing if not consistent — the day before the fateful Iranian election, he was in the Wall Street Journal openly speculating about how Iran might react to such a strike.  Out of six possible responses, he judged that increased Iranian support for terrorism was most likely, edging out a direct missile strike against Israel (because Israel might respond with nukes).

As a Bolton-loving, pro-Israel, Saddam-overthrow-approving neocon, I have to say that some part of me is rooting for an Israeli pre-emptive strike as well.  But they couldn’t do it without crossing U.S.-controlled airspace, and I don’t see that happening.

There’s nothing new about all this speculation, of course.  In 2007, two “MIT eggheads” published a detailed paper titled “Osirak Redux? Assessing Israeli Capabilities to Destroy Iranian Nuclear Facilities.” According to the UK Register:

Raas and Long skate over the massive diplomatic problems that would accompany an Israeli strike. The planes would have to fly over Turkey, Syria, Jordan, or Saudi Arabia: and/or American-occupied Iraq. Turkey and Jordan would be extremely angry, but conceivably might not shoot at the Israelis. Syria surely would. America probably wouldn’t, and arguably would have to be consulted in advance anyway, but all in all the Israeli airmen might have to fight before they even reached [Iran], and perhaps again before they got home. The two authors are surely correct to assume that Israel could never get away with more than a single lightning raid; international outrage would surely prohibit any sustained campaign.

Those three words — “America probably wouldn’t” — might seem like an understatement.  My initial reaction was of course America wouldn’t shoot at Israeli fighters.  I certainly hope we would not.  But the more I think about it, the more I think “probably not” is the right assessment.

The MIT eggheads opine:

Raas and Long suggest that a “strike package” of 50 US-made F-15 and F-16 jets — a considerable proportion of the IAF’s current strength — could potentially wreck Iran’s ability to build nukes, using conventional weapons already in the Israeli inventory.

Those F-15 and F-16 jets are the same fighters Israel used 28 years ago when they took out Saddam’s nuke facility at Osirak, according to the writeup in Wikipedia.  (Yes, yes, Wikipedia’s not authoritative, blah blah blah — but I tend to trust the Wikipedians when they cite footnoted sources, as in this case.)  A look at the map above immediately makes clear the logistical challenges of an Israeli strike on Iran, especially since the much-easier Osirak operation was dicey in the first place.

One of Wikipedia’s footnotes leads to the text of a 2001 speech by an Israeli Ambassador, in which he said:

Ten years later, Dick Cheney told me that if Israel not made this preemptive attack [on Osirak], the Gulf War may have yielded a different result.

Cheney — talk about the usual suspects!

And therein lies my point.  There’s a new American sheriff in town, and Mr. Obama is clearly less supportive of Israel’s security needs than his predecessor.  I’m no expert on military capabilities — I wouldn’t even qualify as a dilettante — but it’s inconceivable to me that Israel could carry out a strike against Iran without American acquiesence at the very least.  Remember that even before the war in Iraq, America was enforcing no-fly zones in the northern and southern portions of Iraq.

F-15Iran’s efforts to blame the U.S. for the recent rioting in Tehran are transparently silly, but that hasn’t kept them from making the accusation.  Obama has shown what I and others consider to be excessive concern with what Iran thinks about us.  So it stands to reason that even as I write this, American diplomats are telling Israeli diplomats to pay no attention to what that man with the white mustache says in the Washington Post.

Would Israel attack Iran even over the strenuous objections of the Obama administration?  It’s certainly conceivable.  The question is, how far would Obama go to deter an Israeli attack?  I don’t for a moment think that any American official is eager to shoot down an Israeli fighter — but would they scramble American jets to try to intercept and wave off the Israelis?  And if those jets get within range of each other, what would each side’s rules of engagement be?

Any such confrontation would “probably” (there’s that word again) not permanently cripple U.S.-Israeli relations, but I don’t think Israel will want to risk it at a time when even the chief of Mossad thinks an Iranian nuclear threat is still years away.  So I’ll be very surprised in Israel actually goes through with a strike on Iraq’s nukes, at least in the near future.  But if it turns out I’m wrong — if Israel does take on Iran — I know who’s side I’ll be on.

(Map and photos of Bolton and F-15 from Wikipedia)