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Mr. President: This Is the Only Way You Can Lift This Country Quickly Out of the Recession

Every dollar that is spent for “stimulus” should be evaluated and directed by one overriding criterion: Does it make people more productive?

Here is why we need to focus on productivity:

1.      Increased productivity is the only way to create new wealth;

2.      Increased productivity is the only way to create new and lasting jobs;

3.      Increased productivity is the only way to hold prices steady, or lower them,  when the excess liquidity, now frozen, finally is used for  spending;

4.      It is the only way to show investors that the government is serious about creating new growth, new jobs and price stability in the years to come.

5.      The private sector will respond by investing the savings that are now idle. That will in turn accelerate your program for economic recovery, Mr. President.

Applying any other criterion but improved productivity will only postpone or impair the recovery.

If you are serious about universal health care, demand a plan for reforming the most expensive health sector in the world that currently produces the outcomes of a developing country.  Ask for a plan that will turn the negative productivity around. (Yes, Mr. President, the health sector is getting worse each year, and if this sector had been as productive as the average American worker over the last decade, our health care costs would have been LESS today than they were a decade ago, we would have given good healthcare to ALL of our citizens without increasing the health care work force, and the health sector would still have been the highest-paid sector in the economy.)

If you are serious about education for all, ask the education sector to show how its productivity should be improved as well, and ask that all students be held accountable for the results that will make them highly paid, productive citizens of this country.

All that said, the highest returns on your investment in this economy will come from investing in the only resource that is absolutely necessary for a bright future: Americans young and old, urban and rural, male and female.  It is how Japan became the second largest economy in the world after World War II with no other comparable resource available to her.

Job creation happens in small businesses.  Sixty to eighty percent of all new jobs come from companies with fewer than 500 employees.  If those companies are helped with stimulus funds, their survival rate will increase from 20% over 5 years to more than eighty percent, and we shall have the full employment you so strongly desire!

 For future earnings, nothing will yield higher returns than increasing high school graduation rates, helping larger numbers of people graduate from post-secondary schools and colleges, and encouraging more people to enter graduate schools.  We simply cannot afford to waste our human resources any longer.

There are economists who argue that throughout history, only wars have brought about the stimulus effects that lift an economy out of a recession.  Military spending spawned the Internet, satellite communications, nuclear energy development and myriad other inventions and innovations that spurred economic growth.

 

Mr. President, the Second World War cost $288 billion; in today’s money, about $3.1 trillion.  According to Mr. Alan Greenspan, we have expended or committed about $7 trillion to address and resolve the credit crisis.  That is more than twice what was required to win WWII.  But even this investment will not be enough if the urgency of spending our money in the best possible way does not push aside all other tempting options.  We should not direct money towards failing companies that will never recover or to sectors of the economy that must be reformed before investments should be made.  Nor should we spend it on “shovel-ready” projects that will not make us better contributors to the economy.

So, if you are softhearted about all those who struggle in these hard economic times, please be hardheaded about how to best help them.

There is no greater sense of pride than that derived from setting and achieving challenging goals.  So far, I have not heard of any cogent plans for lifting the productive contribution of every man, woman and child in this country. But that should be the overriding —and self-correcting — goal for this economy.  Rest assured that when and if that happens, jobs will be plentiful, workers will be well paid, growth will restore our belief in the future, and the ruinous inflation that everyone predicts may be averted.

As a young instructor at the University of Minnesota I trained idealistic young people for the War on Poverty, and I observed that only one strategy succeeded in that war:  Lifting the productive capacity of every man, woman and child who were trapped in a system designed to keep them poor.  Subsequently, I have had the privilege of working in China, Indonesia, Malaysia, Norway and Sweden. In their disparate cultures and economies, I found that productivity-focused strategies always worked, and that they were the quickest ways to create new growth and new jobs.

I also had the privilege of working with half a million children and youth in 72 slums across this country for the purpose of improving health.  That was when I learned about the importance of employment for heads of families.  It is where I learned to make use of dedicated health professionals to improve health with maximum effectiveness.  That is why health improvement teams had to include occupational therapists, social workers, mental health workers and nutritionists, in addition to physicians, nurses, dentists, physical therapists and speech and hearing professionals.  The work of such comprehensive health improvement teams helped improve the health of the registrants in these seventy-two projects every quarter for the seven years I worked there, and also caused the cost-per-year-per-registrant to fall, as logic dictates it should.  It was the most successful federal project for improving the health of children and youth in the history of this country. Some 500 papers document how it was done.

We know how to make people healthy.  The VA knows it.  Every thinking health care professional knows it.  Set the goal for bringing this nation to health in your first term!  Believe me, it is possible, and it is doable.

It is crises that bring about change, and opportunities for change.  Please do not waste this crisis — like a forest fire, it has within its own destructive force the power to create new and spectacular growth.  We need to burn off excess unproductive activities, wasteful habits and the passive acceptance of the destructive storm that is now raging across the country.

We brought that storm on ourselves.

We can still it.

Mr. President Barack Obama, please, unite this nation under the dignity of a common goal of recovery and provide the resources we need to meet and exceed that noble goal. It worked in World War II. It will work today.

TorSignature

Tor Dahl & Associates Productivity Improvement Seminar

Leading, innovative companies understand the power of productivity as the strategy for achieving greater corporate performance and bottom line results. Yet, most companies do not apply a systematic and rigorous process for realizing their untapped productivity potential. 80% of all corporate initiatives focus instead on efficiency improvements that are not tied to overall growth objectives and do not produce any breakthroughs in performance. Productivity improvement, on the other hand, is so highly leveraged that even small increases can dramatically affect revenue, cost effectiveness and profits, while raising employee satisfaction and customer delight. For publicly held companies, stock prices and market capitalization can increase dramatically.

Tor Dahl & Associates is the world leader in this "new" field of productivity. We have debunked the old myth that productivity takes away jobs and that it is only concerned about "doing more with less". Our successful productivity strategy is rooted in the fundamental belief that productivity is about removing barriers to individual performance, freeing up resources from unproductive processes and reallocating those resources to higher yield activities that support organizational growth objectives. It is a positive method that leads to greater earned competitive advantage, increased job satisfaction and positive employee engagement, rather than job losses and downsizing.

Tor Dahl & Associates offers a compressed tutorial for corporate teams during which the fundamental principles of productivity will be taught and practiced. It is an enjoyable, stimulating, practical and valuable session that identifies key factors that impact productivity and how your organization can apply this insight to make dramatic improvements in personal and organizational performance. Contact us now to arrange for a customized tutorial for your leadership team. Email: loretta@tordahl.com. or Telephone: 1-800-TOR-DAHL.
 
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