Poverty: The New Growth Industry in America

Posted: 08/29/2012 8:43 am

Recent trends in poverty rates should have the country furious at its leaders. When we get the data for 2011 next month, we are likely to see yet another uptick in poverty rates, reversing almost 50 years of economic progress. The percentage of people in extreme poverty, with incomes less than half of the poverty level, is likely to again hit an all-time high since the data has been collected.

The situation is made even worse by the fact that so many of those in poverty are children. In 2010, 27 percent of all children in the country were reported as living below the poverty level. For African-American children, the share in poverty is approaching 40 percent.

Many will blame the welfare reform law in 1996 that passed with bipartisan support. That is appropriate. This bill involved a great deal of political grandstanding and removed guarantees that could have protected millions of families in a severe downturn like what we are now seeing.

Advocates of this bill who now profess surprise at the result need to turn to a new line of work. There were plenty of people at the time who warned that the lack of federal guarantees could lead to severe hardship in an economic downturn. No one has a right to be surprised on this one. The surge in the poverty rate in a downturn like the present one was a predictable and predicted outcome of the legislation.

However, there is the other side of the story, the overall state of the economy, which is the more important cause of the increase in the poverty rate. The vast majority of the people in this country rely on work for the bulk of their income and that would also be true for the tens of millions of people in poverty, if work was available. These people cannot find jobs in today's economy, or at least not full-time jobs that pay anything close to a living wage.

The reason why so many of these people cannot find jobs is the incredible economic mismanagement by people with names like Robert Rubin, Alan Greenspan, and Ben Bernanke. These people thought that the bubbles that drove the economy in the last two decades, the stock bubble in the '90s and the housing bubble in the last decade, were really cool. They somehow thought that either the bubbles would not burst or that it would be easy to pick up the pieces after a crash. In Robert Rubin's case, he personally profited to the tune of more than $100 million from the housing bubble after he left his post as Treasury Secretary to take a top position at Citigroup.

As much as it is important to have strong safety net protections to ensure that people are able to survive tough times, it is even more important to have a strong economy that can generate good paying jobs. Unfortunately, there is nothing on the political agenda at the moment likely to bring the economy back towards full employment any time soon.

Both presidential candidates claim to be committed to deficit reduction as though there is magical process that causes private businesses to start hiring workers when they see that schools are laying off teachers and defense contractors are laying off factory workers. Just as few politicians had the courage in 1996 to stand up and say that the welfare reform bill would jeopardize the security of millions of families, few politicians are prepared to stand up now and say that we actually need more government investment to create jobs and rebuild the economy.

The reality is that the collapse of the housing bubble created an enormous demand gap in the economy. In the short term, this gap can only be filled by the government, whether we like it or not. Until we do get the economy back on its feet, and start creating the millions of jobs that are needed, the poverty numbers will continue to be horrible. That is why the main route for fixing poverty requires fixing the economy.

This post is part of the HuffPost Shadow Conventions 2012, a series spotlighting three issues that are not being discussed at the national GOP and Democratic conventions: The Drug War, Poverty in America, and Money in Politics.

HuffPost Live will be taking a comprehensive look at the persistence of poverty in America August 29th and September 5th from 12-4 pm ET and 6-10 pm ET. Click here to check it out -- and join the conversation.

Obama does first presidential 'ask me anything' chat on Reddit

Barack Obama / Reddit

President Barack Obama is seen at the keyboard in a photo submitted to Reddit as part of the website's "ask me anything" live chat verification process.

By Alan Boyle and Rosa Golijan

President Obama and his staff are quite savvy when it comes to technology — and social sites, in particular — so it shouldn't have come as a surprise that they turned to the social sharing site Reddit today. But it did. With little advance notice, Obama held an "Ask Me Anything" (AMA) live chat, taking questions directly from the Reddit community.

Obama said the most difficult decision he made during his presidency was to boost U.S. military forces for a "surge" in Afghanistan. He said it might take a constitutional amendment to reform the country's campaign financing system. He laid out his plan for helping small businesses and debt-laden graduates, gave a shout-out to Internet freedom and basketball great Michael Jordan, and voiced support for the idea of sending astronauts to Mars someday. But perhaps the biggest news from the AMA was that Obama was actually doing an AMA.

"I am Barack Obama, President of the United States — AMA," he posted on Reddit, adopting the site's terminology. Several Reddit moderators and Admins quickly chimed in to confirm that they verified Obama's identity and that the post wasn't some sort of prank. Reddit's general manager, Erik Martin, told us that the site's staff was in contact with Obama's staff. Obama additionally posted a link to a tweet from his official Twitter account, pointing to that Reddit thread, along with a photo showing the president sitting at a laptop.

Twitter

A Reddit AMA is basically a question-and-answer free-for-all — a staple of the Internet forum. Astronomer Neil DeGrasse Tyson, an AMA alum, famously described Reddit as a "raging community of people with boundless curiosity." From its humble beginnings, in which ordinary joes took questions about their extraordinary experiences, the Reddit AMA has grown into a global stage for scholars, authors and celebrities.

Obama's first-ever presidential AMA added even more wattage to Reddit's spotlight.

"Hey everybody — this is Barack," the president wrote at the start of his AMA. "Just finished a great rally in Charlottesville, and am looking forward to your questions. At the top, I do want to say that our thoughts and prayers are with folks who are dealing with Hurricane Isaac in the Gulf, and to let them know that we are going to be coordinating with state and local officials to make sure that we give families everything they need to recover."

Obama was due to answer questions on Reddit for about half an hour. More than 11,000 comments piled up by the time Obama bowed out of the conversation, almost an hour after it began. Traffic levels were so high that some folks who wanted to get in on the AMA were stymied by the server overload. During the AMA, the two top trends on Twitter were "RNC" (for the Republican National Convention) ... and "Reddit."
We checked in with Reddit's Martin while the AMA was in progress. When we asked how things were going, he blurted out that "it's a bit crazy over here!" Frantic typing could be heard in the background.
After the AMA, Reddit's status account on Twitter reported that the site was "cleaning up after the president's visit. ... We'll be back ASAP."

Here's a rundown of the topics Obama covered. Some of the questions have been condensed or paraphrased:

Are you considering increasing funds to the space program? "Making sure we stay at the forefront of space exploration is a big priority for my administration. The passing of Neil Armstrong this week is a reminder of the inspiration and wonder that our space program has provided in the past; the Curiosity probe on Mars is a reminder of what remains to be discovered. The key is to make sure that we invest in cutting-edge research that can take us to the next level — so even as we continue work with the International Space Station, we are focused on a potential mission to an asteroid as a prelude to a manned Mars flight."

Is Internet freedom an issue you'd push to add to the Democratic Party's 2012 platform? "Internet freedom is something I know you all care passionately about; I do too. We will fight hard to make sure that the Internet remains the open forum for everybody — from those who are expressing an idea to those to want to start a business. And although their will be occasional disagreements on the details of various legislative proposals, I won't stray from that principle — and it will be reflected in the platform."
Favorite basketball player? "[Michael] Jordan — I'm a Bulls guy."

How are you going help small businesses in 2013 and 2014? And what if any bills are you going to implement for small businesses, in 2013, and 2014? "We've really focused on this since I came into office — 18 tax cuts for small business, easier funding from the SBA [Small Business Administration]. Going forward, I want to keep taxes low for the 98 percent of small businesses that have $250,000 or less in income, make it easier for small business to access financing, and expand their opportunities to export. And we will be implementing the Jobs Act bill that I signed that will make it easier for startups to access crowd-funding and reduce their tax burden at the start-up stage."

What is the first thing you'll do on Nov. 7, win or lose? "Win or lose, I'll be thanking everybody who is working so hard — especially all the volunteers in field offices all across the country, and the amazing young people in our campaign offices."

What was the most difficult decision that you had to make during this term? "The decision to surge our forces in Afghanistan. Anytime you send our brave men and women into battle, you know that not everyone will come home safely, and that necessarily weighs heavily on you. The decision did help us blunt the Taliban's momentum, and is allowing us to transition to Afghan lead — so we will have recovered that surge at the end of this month, and will end the war at the end of 2014. But knowing of the heroes that have fallen is something you never forget."

What are you going to do to end the corrupting influence of money in politics during your second term? "Money has always been a factor in politics, but we are seeing something new in the no-holds-barred flow of seven- and eight-figure checks, most undisclosed, into super-PACs; they fundamentally threaten to overwhelm the political process over the long run and drown out the voices of ordinary citizens. We need to start with passing the Disclose Act that is already written and [has] been sponsored in Congress — to at least force disclosure of who is giving to who. We should also pass legislation prohibiting the bundling of campaign contributions from lobbyists. Over the longer term, I think we need to seriously consider mobilizing a constitutional amendment process to overturn Citizens United (assuming the Supreme Court doesn't revisit it). Even if the amendment process falls short, it can shine a spotlight of the super-PAC phenomenon and help apply pressure for change."

What's the recipe for the White House's beer? "It will be out soon! I can tell from firsthand experience, it is tasty."

I am a recent law school graduate [and now] find myself unemployed with a large student loan debt burden. While I'm sure my immediate prospects will improve in time, it's difficult to be optimistic about the future. ... Many of us are demoralized. Your 2008 campaign was successful in large part due to the efforts of younger demographics. We worked for you, we campaigned for you, and we turned out in record numbers to vote for you. ... What hope can you offer us for your second term? "I understand how tough it is out there for recent grads. You're right — your long-term prospects are great, but that doesn't help in the short term. Obviously some of the steps we have taken already help young people at the start of their careers. Because of the health care bill, you can stay on your parent's plan until you're 26. Because of our student loan bill, we are lowering the debt burdens that young people have to carry. But the key for your future, and all our futures, is an economy that is growing and creating solid middle-class jobs — and that's why the choice in this election is so important. The other party has two ideas for growth — more tax cuts for the wealthy (paid for by raising tax burdens on the middle class and gutting investments like education) and getting rid of regulations we've put in place to control the excesses on Wall Street and help consumers. These ideas have been tried, they didn't work, and will make the economy worse. I want to keep promoting advanced manufacturing that will bring jobs back to America, promote all-American energy sources (including wind and solar), keep investing in education and make college more affordable, rebuild our infrastructure, invest in science, and reduce our deficit in a balanced way with prudent spending cuts and higher taxes on folks making more than $250,000 a year. I don't promise that this will solve all our immediate economic challenges, but my plans will lay the foundation for long-term growth for your generation, and for generations to follow. So don't be discouraged — we didn't get into this fix overnight, and we won't get out overnight, but we are making progress and with your help will make more."

How do you balance family life and hobbies with, well, being the president of the United States? "It's hard — truthfully, the main thing other than work is just making sure that I'm spending enough time with Michelle and the girls. The big advantage I have is that I live above the store — so I have no commute! So we make sure that when I'm in DC I never miss dinner with them at 6:30 p.m. — even if I have to go back down to the Oval for work later in the evening. I do work out every morning as well, and try to get a basketball or golf game in on the weekends just to get out of the bubble. Speaking of balance, though, I need to get going so I'm back in DC in time for dinner. But I want to thank everybody at Reddit for participating — this is an example of how technology and the Internet can empower the sorts of conversations that strengthen our democracy over the long run. AND REMEMBER TO VOTE IN NOVEMBER — if you need to know how to register, go to Gottaregister.com. By the way, if you want to know what I think about this whole Reddit experience — NOT BAD!"

That last cap-locked comment, by the way, is a shout out to his own Internet meme — the Obama "not bad" face taken from a photo of the president and Michelle Obama's first visit to Buckingham Palace — which originated on Reddit. And sure enough, before the AMA ended, the president inspired another meme. Here are are a few examples.

via The Daily Dot

via The Daily Dot

Related stories:

• How Reddit users helped fulfill a terminal cancer patient's wish
• Reddit raises $31,000 for child's medical care — in 12 hours
• Reddit users shower ill man with letters and gifts for over a month

718 comments

Economy grew at faster pace than first thought in 2nd quarter

By NBC News staff and wire reports

The economy's pace was more like a turtle than a snail in the second quarter.
The Commerce Department reported Wednesday that it had revised slightly upward its initial estimate for second quarter gross domestic product to a rate of 1.7 percent from 1.5 percent. The first quarter's pace remained at 2.0 percent.
The government report attributed the increase to exports and personal spending which offset sluggish state and local government spending and slow restocking of inventories by businesses wary of the economic environment at home and overseas.
The report also showed that after-tax corporate profits unexpectedly rose at 1.1 percent rate after sinking 8.6 percent in the first quarter.

While the composition of economic activity was fairly favorable, growth remains well below the 2-2.5 percent rate required every quarter to hold the unemployment rate steady, which could compel policymakers at the Federal Reserve to offer additional stimulus at their September 12-13 meeting.

Speculation the Fed would loosen policy further had been dampened by a pick-up in job growth and a rebound in retail sales in July, but other data on business spending and inflation supported more action.
Chairman Ben Bernanke could offer more clarity in the near-term outlook for monetary policy when he gives a speech at the Kansas City Fed's high-profile gathering in Jackson Hole, Wyo., at the end of the week.
The jobless rate rose to 8.3 percent in July from 8.2 percent the prior month. The weak economy could be a stumbling block to President Barack Obama's quest for a second-term in office in November.
First-quarter economic growth was revised up to show strong export growth, despite slowing global demand. Trade contributed 0.32 percentage point to GDP growth instead of subtracting a third of a percentage point, as previously reported.
That helped to offset the drag from inventories. Business inventories increased $49.9 billion instead of $66.3 billion and subtracted 0.23 percentage point from GDP growth in the April-June period. However, the careful management of stocks can be a boost to the economy in the third quarter.
Excluding inventories, GDP rose at a 2.0 percent rate rather than 1.2 percent. In the first quarter, final sales of goods and services produced in the United States increased at a 2.4 percent pace.
There were also upward revisions to growth in consumer spending, which was bumped up to a 1.7 percent pace from the previously reported 1.5 percent. That was a step-down from the 2.4 percent pace recorded in the first quarter.
Investment in the construction of nonresidential structures was stronger than previously reported. But growth in business investment in equipment and software was lowered to a 4.7 percent pace, the slowest since the third quarter of 2009, from 7.2 percent previously.
Spending by businesses on equipment and software has slowed sharply from a peak of 18.3 percent in the third quarter of last year.
That appears to have intensified early this quarter, with a measure of business spending plans falling sharply in July. The pullback likely reflects worries of deep government spending cuts and higher taxes scheduled to kick in at the start of 2013, as well as troubles from the debt crisis in Europe.
Growth in spending on homebuilding was cut to an 8.9 percent rate from 9.7 percent. The decline in government spending was not as deep as previously reported, with defense outlays falling at a 0.1 percent rate instead of 0.4 percent.
Though consumer spending was revised up, inflation pressures remained muted.
A price index for personal spending rose at an unrevised 0.7 percent, the slowest pace since the second quarter of 2010. It rose 2.5 percent in the first quarter.
A core measure that strips out food and energy costs advanced at an unrevised 1.8 percent pace, slowing down from 2.2 percent in the prior quarter.
Reuters contributed to this report.

Mr Paul Ryan speaks tonight

Visit NBCNews.com for breaking news, world news, and news about the economy

Visit NBCNews.com for breaking news, world news, and news about the economy

Visit NBCNews.com for breaking news, world news, and news about the economy

Isaac Bringing Heavy Rain

ISAAC

Last Updated at 5:00pm ET  Next Update at 11:00pm ET

Strength Tropical Storm Strength

30 N 91.1 W Location

NW at 6 mph Direction

70mph Wind

975mb Pressure

Last Updated at 1:00pm ET  Next Update at 5:00pm ET

Strength Hurricane Strength  1 CAT

29.7 N  90.8 W Location

NW  at 6 mph Direction

75mph Wind

973mb Pressure

Major Flooding, Surge from Isaac

Isaac is barely moving and is expected to pound the Gulf Coast with heavy rain, winds, and surge through Thursday.

ISAAC

Last Updated at 9:00pm ET  Next Update at 11:00pm ET

Strength Hurricane Strength  1 CAT

29 N  89.6 W Location

NW  at 8 mph Direction

80mph Wind

968mb Pressure

Hurricane Isaac Landfall in Louisiana

Florida, Alabama, Mississippi, and Louisiana will all be impacted by this slow-moving, potentially devastating storm.

More on Isaac

• Tornado Threat on Gulf Coast from Isaac

• Isaac's Interactive History

• What They're Saying about Isaac

• Dr. Jeff Masters: Isaac's Storm Surge

• Bryan Norcross: Isaac's Surge, Winds, Flooding

• Isaac Caught On Camera

• Red Cross: Make a Donation

• Nuclear Plant Closes & More Isaac Notes

• Dramatic Rescue During Typhoon

• Tropical Storm Kirk Forms in the Atlantic

Continuing Coverage:

• PHOTOS: Latest Isaac Impact

• PHOTOS: Isaac's wrath in Florida

• VIDEOS: On location

• STORIES: All Isaac coverage

Family Evacuates Just in Time

A Facebook user posts a photo sent by her daughter who lives on the third rooftop down the street from this photo taken in Braithwaite, La., otherwise known as Plaquemines Parish. "Thank God she and my grandkids evacuated," she said. "This is so sad. My heart breaks for her and all of those who are who are losing their homes in Plaquemines Parish."

New Orleans, La. – Strong winds brought scaffolding down in front of the Westin Hotel on 100 Rue Iberville in New Orleans, La., on Wednesday Aug. 29, 2012. On the seventh anniversary of Hurricane Katrina, Hurricane Isaac shows no mercy, dumping wind, rain and surge on Louisiana.

New Orleans, La. – A man braves the storm and walks down Burbon street on Wednesday, Aug. 29, 2012. Hurricane Isaac continues to dump wind, rain and storm surge on the Gulf Coast.

Braithwaite, La. – A man and a dog, who were rescued from their flooded homes are loaded into a Louisiana National Guard truck, after Hurricane Isaac made landfall and flooded homes with 10 feet of water in Braithwaite, La., in Plaquemines Parish Wednesday, Aug. 29, 2012.

Lakeshore, Miss. – Hurricane Isaac slammed the Gulf Coast with heavy rain and wind Wednesday. Storm surge and flooding has been found in Louisiana, Alabama and Mississippi. Above, Isaac's wrath affects Lakeshore, Miss.

Waveland, Miss. – Isaac's winds and storm surge overcomes the seawall and floods South Beach Boulevard in Waveland, Miss., Wednesday, Aug. 29, 2012, the seventh anniversary of Hurricane Katrina hitting the Gulf Coast.

New Orleans, La. – An uprooted tree lies across Poydras St. downtown after Hurricane Isaac made landfall in New Orleans, Wednesday, Aug. 29, 2012. The storm stalled for several hours before resuming a slow trek inland, and forecasters said that was in keeping with the its erratic history. The slow motion over land means it could dump up to 20 inches of rain in some areas.

New Orleans, La. – Research students from the the University of Alabama measure wind speeds as Hurricane Isaac makes landfall, Wednesday, Aug. 29, 2012, in New Orleans, La.

Mobile, Ala. – Adams Street near the State Docks in Mobile, Ala. is flooded on Wednesday, Aug. 29, 2012. Hurricane Isaac has dumped more than five inches of rain on the Alabama coast and knocked out power to some residents, but it hasn't interrupted the everyday life of others.

As Hurricane Isaac pounds the Gulf Coast, it is damaging structures, too. James H. Perry of New Orleans said his home already was in need of repair when it collapsed during heavy winds from Isaac. "My wife and I just bought it to renovate about 30 days ago," he said.

New Orleans – Matthew Nicaud braves the wind as waves crash over the seawall of Lake Pontchartrain at Canal Boulevard in New Orleans, Tuesday, Aug. 28, 2012, as Hurricane Isaac approaches landfall. On Wednesday, Isaac continued to dump storm surge flooding, heavy rainfall and strong winds on the northern Gulf Coast after making landfall Tuesday night.

Members of the 1st 141st Field Artillery battalion stand Guard at the the Superdome in New Orleans, LA on Tuesday, August 28, 2012.

The new Levee rebuilt after Katrina is seen in the lower ninth ward on Tuesday Aug. 28 2012.

Bay St. Louis, Ms. – Water rises from a rising bayeux, flooding properties ahead of the arrival of Hurricane Isaac on August 28, 2012 in Bay St. Louis, Mississippi. Many residents of the area decided to stay in their homes instead of evacuate for the Level 1 hurricane. The area was devastated by Hurricane Katrina in 2005.

New Orleans, La. – Matthew Pettus holds a sheet open in the wind on the levee near Lake Pontchatrain as Hurricane Isaac approaches on August 28, 2012 in New Orleans, Louisiana. Hurricane Isaac is expected to make landfall later today along the Louisiana coast.

New Orleans, La. – Joshua Keegan and his dog Scout swim in the rising water of Lake Pontchartrain as Hurricane Isaac approaches on August 28, 2012 in New Orleans, Louisiana. Hurricane Isaac is expected to make landfall later today along the Louisiana coast.

Waveland, Ms. – A U.S. National Guard patrol passes along a flooded beach ahead of the arrival of Hurricane Isaac on August 28, 2012 in Waveland, Mississippi. Many residents of the area decided to stay in their homes instead of evacuate for the Level 1 hurricane.

Washington, DC – US President Barack Obama delivers a statement on Tropical Storm Isaac August 28, 2012 in the Diplomatic Reception Room of the White House in Washington, DC. Obama Tuesday warned of significant damage and flooding from Tropical Storm Isaac, telling people in its path to take the 'big storm' seriously and follow directions.

Fort Walton Beach, Fl. – A crowd gathers on the end of the boardwalk on Okaloosa Island in Fort Walton Beach, Fla., Tuesday, Aug. 28, 2012 to watch rough surf generated by Hurricane Isaac as it moves through the Gulf of Mexico with an expected landfall in Louisiana.

Houma, La. – Gus Williams, feeds his step-granddaughter Somaya Washington, as her mother, Areonisha Washington, watches after evacuating to a shelter in Houma, La., Tuesday, August 28, 2012. Isaac could cause storm surges along the coasts of southeast Louisiana and Mississippi and even in the Florida Panhandle.

New Orleans, La. – Local residents register to ride out the storm in a hurricane shelter at the Belle Chasse Auditorium on August 27, 2012 in Belle Chasse, Louisiana. Tropical Storm Isaac is expected to strengthen into at least a Category 1 hurricane before making landfall near Louisiana.

Gulfport, Miss. – Pelicans fly over rising tides and brisk winds due to Tropical Storm Isaac along the water in west Gulfport, Miss., Tuesday morning, Aug. 28, 2012. Mississippi utility companies have extra crews on hand for possible widespread outages from Isaac.

SHADOW CONVENTIONS: POVERTY IN AMERICA

Extreme Poverty Around Tampa... Job Training Programs… The Digital Divide… Without Medicaid, No Last Line Of Defense For America's Poor... Preschool Budget Cuts... Poverty Coverage Draws Persistent Criticism... EURO GROAN... 13 Movies That Changed How We See Poverty... From Co-Ed to Corporate... 7 Great Books On Poverty... 

Conventions 2012: To Save the American Dream, We Need to Recapture the American Spirit

Posted: 08/28/2012 11:38 pm

TAMPA, FLORIDA -- Though the first day of the Republican convention was disrupted by the hurricane that wasn't, the rest of the week is following the carefully planned script. As will, I'm sure, the Democratic convention next week in Charlotte. Speeches will be delivered, standing ovations will be given, and balloons will drop as a smiling family waves from the dais. Both conventions will portray their respective parties as well-oiled machines, ready to churn out solutions to our many crises. But don't mistake the shows for reality, which is not following the same smoothly executed script, which includes 20 million Americans who are unemployed or underemployed, while jobs go unfilled because job seekers lack the right skills or training. It would be hard to overstate the devastating human consequences behind those numbers. At The Huffington Post, we're committed to telling those wrenching stories. But there is a real danger that by focusing exclusively on what is not working, the media are missing out on recognizing what is working -- the opportunities that are available, and the creativity, ingenuity, compassion, and entrepreneurship Americans are tapping into in order to create jobs.

That's why we've chosen to use the unique opportunity offered by the conventions -- with 15,000 credentialed media present -- to launch a multi-part effort to put the spotlight on solutions, innovative ideas, and the men and women who are actually creating jobs right now. The conventions are, of course, inherently partisan affairs, but there's nothing left-wing or right-wing about coming together to address the jobs crisis.

This week in Tampa, and next week in Charlotte, we're going to hear a lot about what each party intends to do to create jobs. But it's increasingly clear that whichever side of the aisle you're on, no magic solution will be coming out of Washington any time soon. As John Bridgeland, CEO of the public policy firm Civic Enterprises, who has been instrumental in our effort, told me, "we need all hands on deck and there are concrete steps the private sector, fueled by the entrepreneurial spirit of the American people, can take right now to help jumpstart further progress." In order to tap into that "all hands on deck" spirit, and our nation's surplus of resilience and creativity, we need to change the narrative.

And to help do just that, The Huffington Post will be hosting panel discussions at each convention, which will center on those creating jobs right now and on ways we can scale what is working for the kind of disruptive change we need to end the crisis and look ahead to a better future.

Panelists in Tampa will be Ohio Governor John Kasich; Scott Case, CEO of Startup America; Walter Isaacson, CEO of the Aspen Institute; Allen Blue, co-founder of LinkedIn; Laura Ingraham, syndicated radio host and Fox News contributor; Judith Rodin, CEO of The Rockefeller Foundation; Brad Smith, General Counsel at Microsoft; Sanford Shugart, President of Valencia College; Marc Freedman, CEO of Civic Ventures; Jeremy Heimans, CEO of Purpose; and Mark Kvamme, director of JobsOhio. In Charlotte, panelists will include Julián Castro, Mayor of San Antonio and Democratic keynote speaker; Rosario Dawson, actress and Founder of Voto Latino; and musician Will.i.am.

I'm also delighted that Tom Brokaw is moderating both panels. As a journalist and as a storyteller, in books like The Greatest Generation and The Time of Our Lives, he has chronicled the American experience in his own distinctive voice.

As a boy, Brokaw was captivated by the small locked box of $25 war bonds tucked away in his parents' closet -- which, he wrote, had "a kind of sacred quality." And it's true -- the spirit of cooperation, collective purpose and shared sacrifice represented by those bonds is sacred. And "the greatest generation" acted on that spirit to make our country stronger and better. But it wasn't just about fighting the war. In the decade after World War II, as John Bridgeland put it, "that generation volunteered more, joined organizations more, voted more, gave charitable contributions more and were active neighbors helping those in need more than the generations that came before -- and would come after them." Our nation pulled together to educate its workforce and build the economic engine that created the American middle class. Facing an uncertain future, Americans summoned a spirit of optimism, ingenuity, and resilience.

Along with our lunch panels, we'll be hosting a jobs expo, bringing entrepreneurs of all stripes together to showcase the ways they're creating jobs and providing training to America's workforce. We want to open up the lines of communication, and get entrepreneurs and policy-makers talking. And we hope these conversations will continue long after the balloons have deflated. The jobs expo will be all about how -- how we are already creating jobs, how we can learn from each other, and how we can take those solutions to the people and places that need them most.

More than 70 entrepreneurs will appear at each convention expo. They include the Millennial Trains Project, founded by Patrick Dowd, a former JPMorgan analyst, who is organizing cross-country train rides that will bring enterprising young Americans together to see the country's regional challenges and brainstorm solutions; Kickboard, a tech start-up that uses tablets to help teachers cut down on paperwork, centralize student data and share it with other teachers, administrators, and parents; Zeel, a company that connects patients to the health providers they seek; ConnectEDU, which uses a sophisticated algorithm to connect students with the colleges most likely to accept them -- just like Amazon uses customer information to recommend books you might like; and Opportunity Finance Network, whose CEO Mark Pinsky said, "Our hope is that this venture will help kick-start a whole different attitude about what's possible."

Today we'll also announce that more than 30 companies, non-profits and foundations have partnered with us to make specific promises to address the jobs crisis. They include The Rockefeller Foundation, which will award $1 million to an organization with the most innovative solution to create jobs; The Ford Foundation, which is investing $150 million over the next five years to address the factors contributing to the skills gap; and The Skoll Foundation, which has committed $250,000 to a challenge that will fund the most creative and innovative ideas from non-profits working to create jobs.

And I'm delighted that The Huffington Post, along with Crowdrise, will be partnering with The Skoll Foundation in order to fulfill this promise. In coming up with a name for the challenge, we wanted to conjure the barn-raising spirit that has always been part of the American DNA. So we're calling it JobRaising.

Finally, to tie it all together, we've created a dedicated HuffPost section called "Opportunity: What is Working," featuring news and updates on all these projects, as well as blog posts of entrepreneurs, philanthropists and ordinary citizens, as well as governors and mayors, on what is working, and ideas about what would work.

We can rekindle the American Dream, but to do so we'll need to summon the American spirit. We're not letting government or our national leaders convening here in Tampa and in Charlotte off the hook, but we cannot just be bystanders waiting for them to act. There is much to be done, but there is already much being done. By putting the spotlight on what is working, we hope to change the narrative away from a fatalistic acceptance of our jobs crisis to the ingenuity and resilience that have always defined our country.

Hiring In Weak Economy Allows Companies To Gain On Retreating Competitors

Posted: 08/28/2012 10:07 am Updated: 08/28/2012 10:07 am

Steve Jobs, who rejected conventional wisdom about layoffs while at Apple, launched the iPad despite a weak economy in 2010. (AP Photo/Paul Sakuma)

NEW YORK -- The Bureau of Labor Statistics last week announced that 12.9 million workers were laid off from January 2009 to December 2011. For many companies, the answer to the economic downturn has been brutally simple: cut jobs.

But there are other businesses, even in industries buffeted by the financial crisis, that have bucked the trend, avoiding layoffs. Some are publicly traded household names. Others, like business software company SAS, are privately held and operate with a lower profile. They share a belief that layoffs aren't the only way to help the bottom line during tough times, and that hiring might be wise.

Jeffrey Pfeffer, a Stanford University business school professor, said many companies make a simple mistake when they decide on layoffs as a response to economic stress. "Most companies actually do not have an expense problem," he said. "They have a revenue problem.

"What you need then to ask is, 'If I cut people, if I cut the quality of the products and services I am providing into the marketplace, is this going to solve my revenue problem or is it going to make it worse?'"

Taking that question to heart are companies like Southwest Airlines. Despite the extreme stress that the recession and then rising fuel prices have put on airlines, the Texas-based company has not had any mass layoffs since the recession began in late 2007, according to a state database.

Southwest's record stands in sharp contrast to its competitors, including United Airlines, which recently announced 1,300 layoffs in Houston as part of what one critic called a "corporate temper tantrum." Southwest, meanwhile, has been expanding, acquiring AirTran in 2011 without planned layoffs.

Among business leaders and stock market analysts, there used to be a common belief in what was called "the 7 percent rule," which held that a company's stock would jump that much immediately after the announcement of mass firings. That rule, it turns out, was bogus.

Nevertheless, some investors might have believed that downsizing implied a company was serious about cost-control. But Wayne Cascio, a University of Colorado-Denver business professor, said there is little empirical basis for that belief.

Cascio is still crunching the numbers for the recession and its aftermath. But "historically," he said, "we have done this research and we looked at the S&P 500 over a 20-year period, and what we found was companies that all they did was lay off people, and they didn't change anything else ... they never outperformed their competitors."

There may even be a good case for hiring during a downturn.

"The best time to gain competitive advantage on your competition is when they are retreating," said Pfeffer.

Steve Jobs certainly thought so. The late Apple CEO launched the iPod during the 2001 recession.

"What I told our company was that we were just going to invest our way through the downturn, that we weren't going to lay off people, that we'd taken a tremendous amount of effort to get them into Apple in the first place -- the last thing we were going to do is lay them off," Jobs told Fortune in 2008. "And we were going to keep funding. In fact we were going to up our R&D budget so that we would be ahead of our competitors when the downturn was over."

Not every company is in as dynamic an industry as Apple. But, pointing to companies that have resorted to serial firings instead of innovation to avoid insolvency, Cascio said they all need to come to a simple realization: "You can't shrink your way into prosperity. You've got to find ways to grow your business."