Jobs, Jobs, Jobs

While in the EU there is still much discussion re the "top jobs" of the EU, President of the European Council and High Rep on Foreign Affairs and Security Policy, ie what they entail (the "job description"), predictions on how well the appointees will do and how they will define their jobs and interact between them as well as the other top job holders at EU and national level (eg President of the European Commission and the Prime Ministers or Presidents of the EU countries), in the US today, it was all about job creation, with President Obama organising at the White House a Jobs Forum that was televised (streamed) via the Net.

Not that in the EU they are not concerned re the unemployment problem. But it is mostly a "competence" area for national level rather than the EU.

Of course, politicians and policy makers should bare in mind that jobs cannot be created by legislation, but legislation does play a very significant role in either discouraging job creation or creating the "framework conditions" or "climate" for job creation. And that if every micro, small and mid size company in the EU would add 1 more job, the unemployment problem would be solved.

That is why politicians and policy makers IMO have to Understand the micro firms and SMEs and keep in mind when they are legislating that economy and business are not dinosaur corporations or manufacturing anymore, but micro and small companies mostly in Services. And that the policies and laws that they put in place to curb abuses by large corporations do not really prevent much, but they do suffocate ("collateral damage") the micro and small firms.

EU language industry's turnover estimated at Euro 8.4 bn

Many people around the world, especially in the US and most EU countries live in economies that are mostly Services. Services of various types or sectors or "industries".

The language industry is a case in point.

According to a study carried out for the European Commission, the EU language industry has been less affected by the economic crisis than other industries.

The study, which is the first to analyse the size of the language industry EU-wide, covers language related services such as translation, interpreting, localising and globalising, subtitling and dubbing, language technology tools, multilingual conference organisation and language teaching.

The study estimates the industry's EU-wide turnover at Euro 8.4 billion (for 2008) with an annual increase of at least 10% over the next few years: to between Euro 16.5-20 billion by 2015.

This is one of the highest growth rates among EU industries - sectors!

Eurozone bank lending down in September! Why?

While most EUropean governments, including those 16 in the Eurozone of the EU, have spent quite a lot of money to try to help banks and boost lending to consumers, companies and home buyers-mortgage holders, data from the European Central Bank (ECB) shows that Bank loans to companies in Eurozone declined in September at an annual rate of 0.3% after a +0.1% annual rate in August!

The equivalent rates for loans to households was also negative, -0.3%, in September, after -0.2% in August.

Mortgage related lending in the Eurozone declined even more, -0.6%!

Now, why is this? Some seem to argue that these data are a result of lower demand for loans, as companies, households and mortgage holders are tiding up their "internal" finances. Hm!

As as as companies (in the Eurozone) are concerned, I am willing to "buy" this "theory", since Service and micro and small companies do not have as many capital needs as industry does/did.

But I am not sure, who can?

In any case, the news tend to re-enforce my theory that in this Services - post-industrial era for the US and the EU, economic modeling and policies have to account for the new reality: That the core of the economy are micro and small companies and Services, and that it is their "needs" that policy makers have to understand, first, and then address. And that a key need is better and less regulation, which now suffocates small firms.

For real growth and real jobs (in the UK and EUrope)

IMO business entrepreneurship in the UK + rest of EU needs to spend less time dealing with red tape and more in new ideas and Marketing

Ask yourself:

How many people in the UK and EU have ideas and dreams related to new products and services?

How many people in the UK and the EU try to detect new needs and wants of a niche of the 0.5 bn EUropean consumers?

Consider this:

The EU has 0.5 bn people: consumers, workers, job seekers, entrepreneurs stuck in an incomplete (theoretical) EU Single Market

How many small and micro firms in the EU think of the EUropean Single #Market as "their" market (instead of the local - national one)?

How many EUropeans grow up in one EU member state, go to uni in another and get a job or start a business in a third?


What is the way to a real EU, a real EU Single Market and real growth and real jobs?

Who is really afraid of an EU Single Market for Services?

IMO, in a Services era - economy, micro firms need market access and vital space (ie min red tape) more than they need capital.

Thus:

Consider the key role of competition law in the EU Single Market in opening up the EUropean market for micro and small firms

Empower the 0.5 bn EUropeans to turn their hobby into a job without red tape killing their joy and you get real growth + real jobs

Remember: It's a Services economy now (US, UK, etc)

US and UK Services show indications of rebounding! It makes sense, these are Services economies, like many OECD ones! Services and SMEs

Thinking "Economy" in industrial age terms is IMO Ancient History in the US, UK and other OECD post-industrial member countries

Thus
Reminder: policy makers in US, UK + other OECD countries must think Services, SMEs + intellectual products when they think Economy (and design policy and expect growth and jobs).

a new US and EU policy mindset for growth and jobs needed

USA + EU (pop 300 + 500 mil) have approx. 37 mil unemployed (USA 15.1 in Sept, EU 21.9 in August)

Will industrial jobs losses in the US + EU ever be recovered? Time for a major new strategy based on Services, intellectual products + SMEs (small and mid size companies) IMO.

IMO it's time for policy makers to realise that US and EU (and other OECD) economies "are" Services (and intellectual products) and small companies and thus shape appropriate policy mindset.

Socio-economic modeling in a meta-industrial Services era

Socio-economic modeling in a meta-industrial - Services era:


1) which Services sectors should an OECD country base its economy and jobs on - how large/wide a portfolio?

2) how much can intellectual products contribute to an economy + its jobs?

How much Services can your economy produce and export?

How many services are really "tradeable" enough for an economy to depend for exports?

Which ones can the US or the UK or other OECD countries be "good"/globally "comparatively" competitive at?

And can they be "produced" in volumes and prices that can replace the exports of industrial goods? Or will they need to radically reduce their imports to achieve viable trade balances?

2009+ viable models for economic growth, exports and jobs

With 75-80+% of most OECD economies being Services, what are viable models for economic growth, exports and jobs?

on de-regulation and on empowering the real economy

thinking: "it's the Services and the SMEs 'stupid'" (aka "antiquated mindsets")

It is my thesis that many politicians and policy makers, media, Citizen's Society activists as well as the general public have an antiquated mindset when it comes to "business". That their "cognitive associations" link the word "business" with large, huge, industrial companies (if not men dressed in heavy dark suits with cigars in their mouths in smoke stuffed board rooms).

Why?



Because, at least in most of the OECD countries, at least, most of the economic activity is made up of Services, sometimes up to 75-80%. And that this "Services" sector that now dominates economic activity consists of mostly small and micro and some medium and a few large companies, in most of those economies.

Yet those you formulate or comment on policy, politicians, policy makers, media and activists, do so with this antiquated mindset "in mind".

And that leads to policies that are not that relevant to the socio-economic reality of our post/meta-industrial times.