Revisiting the job creation process: food for thought or agenda for action by Frank Owarish, Ph.D.

Much of the stimulus package had to do with helping the ailing financial sector and bail out of businesses which society cannot allow to fail. As the economy starts to grow, most big companies have become used to getting more from less human resources during the hard times and as they recover they are not inclined to create jobs and they do so minimally if they have to (jobless recovery is well know in economics).

The largest number of jobs is created by small businesses. During the hard times, these downsized to stay afloat and as the economy starts to grow again, by the time these businesses go the bank to seek loan to pursue their growth they did not find a positive response. Also those who have resorted to creating small businesses as a result of the recession find themselves in difficulty; they looked to the SBA for help and did not get so, they looked to the banks for help and they did not so either and they failed and by so doing reduce the number of jobs further instead of creating more jobs.

Part of the stimulus package was aimed at government entities; most of these have been inclined to used the resources to deal with their budget shortfalls rather than to invest in creating jobs; there could have been large-scale public work programs like those of the New Deal to create jobs but these did not happen.