Rebuilding the American economy: Fix housing first (18 million jobs are linked)

[Omaha Steve]

http://www.sltrib.com/opinion/ci_11357016

Brad Wilson
Updated: 01/03/2009 10:15:47 AM MST

The year 2008 will go down in the record books as one of the most volatile and challenging times for American workers and businesses.

As I observe the local business community and after discussing and analyzing the current state of our economy with many connected and intelligent people, I have come to believe that the root cause of our national economic difficulties are directly linked to the housing industry.

Clearly, the stabilization of the housing industry is the only way to fix the economy and save the jobs of millions of Americans. We must fix housing first.

"Clearly, the system won't stabilize until house prices stabilize," a New York Times editorial stated. "All roads, into and out of this crisis, run through the housing market."

According to 2005 U.S. Bureau of Labor statistics more than 18 million jobs are directly or indirectly linked to the housing industry. That makes up 16 percent of the entire non-government workforce (112.5 million).

Construction, one of the highest paying industries, has a high "downstream" job creation effect with a 3-1 ratio. A construction job pays well and creates two to three jobs in the community. Home construction creates a vibrant and growing economy.

FULL story at link.

[Idealism]

1. That 18 million figure is way skewed

It includes home construction, which shouldn't have been even close to that big in the first place. Now we have whole developments of houses sitting empty because they shouldn't have been built.

[Donnachaidh]

2. that same sort of *logic* can be applied to others -- say, the automobile industry

But I'll bet we won't hear that applied to them.

Home construction has just as much a right to help as any other business in this country. Those 18 million jobs are NEEDED.

[Idealism]

3. That is not my point

The point is much of those jobs are lost already. Earlier this decade Construction was one of the biggest growth engines of our economy, but it led to the housing bubble, and supply and demand shows us that many of those jobs are not needed now.

[independentpiney]

4. What a load of crap from (surprise) a housing development CEO

Most of those 18 million jobs are manufacturers,suppliers and distributors who are also linked to infrastructure and public works construction. So as long as the investment is made in public sector projects they'll do fine without housing developers. Better even, since developers are notoriously slow payers.

And as far as pay in the construction sectors go, most housing developers and their subcontractors pay the lowest wages in the industry, provide the least benefits, and defy labor and safety regulations whenever it'll cut costs and they can get away with it.

I can't think of any general housing trades that wouldn't be transferable to other sectors, and there will always be a remodeling and renovation industry for the real specialties.