Virtually all of my friends who own or run companies say their biggest issue these days is finding skilled people to fill middle level jobs. There is a dearth of properly educated talent in virtually every field, and it is not a matter of pay. It is a lack of a good education and a good solid work experience and training. Many jobs go unfilled today because the skill set is just not showing up to be hired. Part of the problem might be that well qualified people are so rare they are well compensated and well regarded in their existing job so they have no incentive to leave unless the offered pay is far higher. But if someone is earning a good income for their level, and if they are being treated well, why leave for a relatively small jump in pay unless it is to a company that offers a much better career path long term or a stock option or other equity incentive.

In my view the real issue is we are not educating kids in school today to a proper level to be properly prepared for the high tech world we are now entering. The teachers unions have pretty much severely damaged the whole generation of kids by refusing to allow bad teachers to be fired and by not allowing schools to have teachers put in the hours after class or in proper preparation. For most young teachers who come into the system all revved to really do a great job, it is a crushing set of rules that stops them harshly from doing the extra things that would have made a difference to the kids. I know several young teachers who quit after a couple of years because the union would not let them do the extra things they knew were needed to give the kids that extra push to achieve.

All you need to do is look at the results of charter schools vs public schools to see the obvious difference. It is glaring. Charter schools are non union. Teachers are mentored and encouraged to go the extra mile. They are encouraged to make the kids the best they can be and at no extra cost per child. Money is not the issue. No unions is the issue. Freedom to teach the best they can do is the way charters work. Just get through the day, and do not do anything extra or special, is the way public schools work. When you know you cannot ever be fired and that even if you are found guilty of sexual predator actions, the union will still protect your pension and healthcare, what incentive do you have to try to do anything outside the confines of union rules. All you get is pounded down if you do.

Teachers unions have done more damage long term to the US ability to build a strong competitive economy than anything else. Their negative influence on the futures of our kids and the nation is as bad as anything. The recent law suit in California by kids against the unions which had as its claim , the exact issues I raise here, is hopefully the start of a growing trend to undo teachers unions control of the education of our kids and the lack of skilled people to fill the jobs needed to build a strong economy.

The other problem we face is political correctness run amok. School administrators now seem to be more concerned about everyone being perfectly politically correct than with kids having the ability to learn to deal with competition, insults, and the many other things that create the skills to compete well once out of school. Having no winners in class sports so nobly “feels bad”, is just teaching kids that they are entitled to win every time, no matter how bad their skill set. That just teaches kids to demand to be hired or paid well even if they have no ability. It teaches girls and minorities that they don't have to be the best they can be, but if they get fired all they need to do is sue or threaten to sue and they will be retained in their job or paid to go away. Ask any manager in a major company if they can fire a black female even if she is doing a poor job. Ask them if they can fire a gay black guy. The answer is no way. So what is the message. You do not have to be skilled, you just have to have the right gender and skin color, and you get near permanent employment. Skills become secondary. We are creating a massive skills degrade which is harming the country's ability to be the best it can be.

When I was growing up we suffered insults, we learned we had to work harder to overcome skill deficiencies in a sport or in class, we learned to fend for ourselves and not to run to lawyers to help and we never even dreamed that the government would intervene. We were taught self reliance and that to succeed you had to earn it. We learned there is discrimination and that you had to figure out yourself how to deal with it and how to beat it. The answer was to be smarter and work harder, not to whine and run to a lawyer. The country is a much less able nation today because we have taught kids they no longer need to fend for themselves and no longer need to take individual responsibility. They are taught it is always the system fault, some rich guy or some bank's fault, or that by making claims you get money, as opposed to by working hard and studying hard you too can be rich even if you start with nothing as many of us have. .

So if you are in a place and a situation where you can influence the ridding of the system of the unions and get schools back to teaching strong skills, then do something to try to change things.

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Joel Ross

Joel Ross began his career in Wall St as an investment banker in 1965, handling corporate advisory matters for a variety of clients. During the seventies he was CEO of North American operations for a UK based conglomerate, and sat on the parent company board. In 1981, he began his own firm handling leveraged buyouts, investment banking and real estate financing. In 1984 Ross began providing investment banking services and arranging financing for real estate transactions with his own firm, Ross Properties, Inc. In 1993 Ross and a partner, Lexington Mortgage, created the first Wall St hotel CMBS program in conjunction with Nomura. They went on to develop a similar CMBS program for another major Wall St investment bank and for five leading hotel companies. Lexington, in partnership with Mr. Ross established a hotel mortgage bank table funded by an investment bank, and making all CMBS hotel loans on their behalf. In 1999 he formed Citadel Realty Advisors as a successor to Ross Properties Corp., focusing on real estate investment banking in the US, UK and Paris. He has closed over $3.0 billion of financings for office, hotel, retail, land and multifamily projects. Ross is also a founder of Market Street Investors, a brownfield land development company, and has been involved in the acquisition of notes on defaulted loans and various REO assets in conjunction with several major investors. Ross was an adjunct professor in the graduate program at the NYU Hotel School. He is a member of Urban Land Institute and was a member of the leadership of his ULI council. In 1999, he conceived and co-authored with PricewaterhouseCoopers, the Hotel Mortgage Performance Report, a major study of hotel mortgage default rates.