Thousands of North Carolinians will spend Labor Day weekend looking for a job rather than taking a break from one. While the state’s unemployment rate edged down to 9.8 percent in July, the rate is still higher than the national average of 9.5 percent. North Carolina has held that dubious distinction since February 2008.
More than 440,000 of our neighbors are now unemployed, according to state Employment Security Commission data. “Job growth across all sectors continues to be a challenge,” said ESC chairman Lynn R. Holmes in a news release announcing the July numbers.
That’s the bureaucratic way of saying the job market stinks.
I can relate to the frustration, self-doubt, and for some, downright fear, that comes with not being able to find work. I’ve been through it, and, as I chronicled in 2007, so has my father. Laid off in his mid-50s, he hit the street for the first time in 20 years — without a high school diploma — in search of a job that would pay for his brawn.
I’ll always be thankful to the major grocery store chain that hired Dad and restored his dignity. That’s why I’m baffled by the vitriolic class warfare being waged against the executives and investors of major and emerging businesses — the very people whose knowledge, skill, and money create jobs, stimulate the economy, fund charities, support local communities, and spur innovation.
It makes no sense. Yet, from the political class to mainstream America, it is politically correct to lash out with words and policies at those who will make or break our economic future. Here’s why they deserve our appreciation, not our scorn.
They Hire. It takes guts to gamble with thousands or millions of your own money, but entrepreneurs regularly roll the dice on ideas, people, and technology. You and I are the beneficiaries of the jobs they create to carry out their investment. If the idea catches on, they hire more people, sell more products, and reap rewards for their willingness to risk. We all win. But if the business goes bust, you and I take only a temporary hit. The entrepreneur’s investment is gone forever.
They Pay. In 2007, nearly $3 of every $10 of all federal taxes paid — 28.1 percent — were paid by the highest-earning 1 percent of U.S. households — those with income of more than $352,900, according to Congressional Budget Office reports. That same group of earners accounted for 39.5 percent of federal income tax liability. Remember this the next time someone tells you the “rich” don’t pay their “fair share.”
They Spend. The top 5 percent of U.S. households drive the economy. They’re the people who, in good times and bad, buy products and services from the stores and businesses that employ millions of Americans. According to Moody’s Analytics, this group is responsible for 37 percent of all consumer spending. And since consumer spending accounts for a major chunk of economic activity, you and I keep our jobs when they open their wallets. When they don’t, you and I join the unemployment line.
They Give. The pledge from 40 billionaires to donate half their fortunes to charity is phenomenal. These astronomically wealthy men and women are to be applauded. But so should the six-figure and seven-figure earners across this country who are consistent major funders of nonprofit groups and community crusades. Add their impossible-to-quantify acts of private kindness and charity to the equation, and it is clear that the well-off are the backbone of this country’s philanthropic efforts.
They Adopt. In the age of technology and innovation, early adopters of expensive new products and services fuel more production and improvements. Prices fall, making the new technology affordable, accessible, and, eventually, ubiquitous among the middle class. Without this early marketplace support, mass production of technological advances would slow to a crawl.
As we prepare to celebrate the American worker this Labor Day, let’s also be intellectually honest about the critical contributions of the executive, the entrepreneur, and the investor.