Warning Brain Drain

The economy continues to struggle and even though there is some job creation, there are currently 2 million fewer people in the workforce than there was when Obama took office.  One of the hardest hit demographics are recent college graduates.  Many of these graduates are working jobs that do not even require a college degree.  The average starting salary for 2009 and 2010 for recent graduates was $27,000 down from $30,000 from 2006 to 2008.  However, the most alarming statistic is that only 56 percent had held at least one job this spring.  This means 44 percent have little or no work experience.  Hardly the way a new college graduate wants to enter the workforce (1). 

In Greece, the situation is even worse.  With the possibility of a total economic meltdown and Greece’ potential exit from the European Union, college graduates in Greece find it virtually impossible to find a job.  Many are escaping to Germany where the economic outlook is much better (2).  This represents a brain drain for Greece since it is likely the brightest new graduates are going elsewhere at a time when Greece needs these people to offer solutions to their problems. 

If the United States does not address the problem of unemployment for new graduates, we too could experience the same brain drain.  In fact, in Dayton Ohio college graduates are currently leaving due to a lack of opportunity for them to utilize their skills (3).

What we need is a vibrant economy with an expanding workforce that not only restores the net 2 million jobs that have been lost but also creates new opportunities for these new graduates.  As a solution, I would propose a cutting or even temporary cessation of the corporate income tax.  Most corporations would take advantage of this opportunity to expand their businesses thus creating more jobs.  This is not rocket science, if a business has more capital they invest it in expansion so they can increase profits. 

In addition, we need to reduce regulations that bog businesses down with needless reporting and legal requirements that eat up capital they could use for expansion and job creation.  Again, this is not rocket science, businesses could use capital currently being used to pay attorneys and accountants to comply with regulations to hire additional employees. 

That is my solution, now I am interested in your solutions. 

1. Rampell, Catherine. Many with new college degree find the job market humbling. www.nytimes.com. [Online] New York Times, May 18, 2012. [Cited: May 31, 2012.] http://www.nytimes.com/2011/05/19/business/economy/19grads.html. 1.

2. Angerer, Andy Eckardt and Carlo. it is virtually impossible to find a job': Brain drain is new Greek tragedy. www.worldnews.msnbc.msn.com. [Online] NBC News, May 2012, 2012. [Cited: May 31, 2012.] http://worldnews.msnbc.msn.com/_news/2012/05/30/11933342-it-is-virtually-impossible-to-find-a-job-brain-drain-is-new-greek-tragedy?lite?ocid=twitter. 2.

3. Tavernise, Sabrina. A gap in college graduates leaves some cities behind. www.nytimes.com. [Online] New York Times, May 30, 2012. [Cited: May 31, 2012.] http://www.nytimes.com/2012/05/31/us/as-college-graduates-cluster-some-cities-are-left-behind.html?_r=1&smid=tw-nytimes&seid=auto. 3.