Last week, the U.S. Labor Department reported that unemployment fell to 5.1 percent, its lowest level in seven years. But that figure only tells part of the story. August was a below-average month for new jobs nationwide, and wages grew at a rate below what the Federal Reserve had hoped for the sake of the economy at large.
That mixed bag wouldn’t surprise Katherine Gehl. Until earlier this year, Gehl was the president and CEO of Wisconsin-based dairy company Gehl Foods. She oversaw the company’s sale to a private equity firm and today is among the leaders of an organization called The Centrist Project.
She is an advocate for fixing what she sees as flaws in the political system, which she believes are responsible for economic struggles in this country.
"The economy is only doing half of its job, and there are two pieces that the economy needs to deliver to be competitive. One is that businesses have to be able to succeed, and the second is businesses have to support high and rising standards of living for their everyday American workers. And that's the piece of the economy that's not working now," Gehl explains.
In order to have a better economy, Gehl firmly believes that returning the government to effectiveness is the only way the economy can be in balance once again. Without reforming the government, issues such as K-12 education, the corporate tax code and infrastructure issues will remain unsolved.
"Returning effective government, reclaiming effective governance is the challenge of our times," she says. "If we are unable to do that it is very clear that we will not solve the weakest parts of the foundations of our economy."
