Recently the Administration has gone around touting the 4.9% U3 unemployment number as indicating that the economy is in good shape.
Paul Craig Roberts asks if the reports are all propaganda.
We can look and see. Is there anything missing in the “good news?”
Well there are a few things that the Adminstration and it’s friends have neglected to mention:
The labor participation rate has conveniently continued to crash since the administration took over enabling the unemployment rate to be lower than reality!
This administration and the economy has been the recipient of 0% rates since becoming President…the recipient of $4 trillion-plus of printed money here and depending on the abacus you are using, $15-20 trillion of printed money around the globe…leading to a responding market to all the printed money creating a faux wealth effect that now goes into reverse. Very simply, the easiest monetary policy in the history of time!
Deflation almost everywhere except for your healthcare premiums and deductibles.
GDP under 1%.
The Baltic Dry Index hitting another new all-time record low.
U.S. factory orders that have now dropped for 14 months in a row.
Orders for class 8 trucks (the big ones) declining a measly 48 percent from a year ago.
Junk bonds continuing to crash!.
The Restaurant Performance Index falling to the lowest level since 2008.
A major slowdown in rail traffic!
Corporate profit margins peaking during the third quarter of 2014 and heading lower since.
Food stamp beneficiaries…at or near all-time highs.
Welfare spending…a measly $1 trillion/year through over 80 different federal programs.
Wal-Mart is closing 269 stores, including 154 inside the United States.
KMart is closing dozens of stores.
JC Penney shutting down almost 100 stores.
Macys shutting 36 stores.
The Gap closing 175 stores.
Aeropostale clsoing 84 stores.
Finish Line closing 150 stores.
Sears shutting 100s of stores.
Massive sales and earnings misses by Kohls, Bed Bath and Beyond, Best Buy, Ralph Lauren and many others. All this while oil prices have crashed.
And of course:
Creation of $8.4 trillion of new debt under your watch! That’s over and above the already assinine amounts of taxpayer dollars you receive. That’s after you saying you would go line by line through the budget to root out all the waste and stating you would cut deficits in half.
Despite you saying you lowered the deficit by 50%, you forget to mention it was you who inflated the deficit in the first place.
The CBO now says deficits are going to double to back over $1 trillion/year very soon…and total debt will head into the high $20s (trillion)!
Of course when mentioning the job gains, they also neglected to mention the job LOSSES, a MUCH larger number.
Or just what those new jobs did. Somehow the difference between low wage low skilled part time jobs and high wage high skill full time jobs seems to escape the Administration.
One would think that our leaders would at some point stop deceiving themselves. The Washington bubble though, seems to be impenetrable. They lard up the system with ever more onerous regulations and requirements and don’t consider how that effects the cost of doing business, or any costs for that matter.
They keep telling us that the cost of the latest new shiny is going to be almost free. Or that we the people aren’t going to pay for it. As someone who has spent far too much time in regulatory compliance of one form or another I can tell you that “almost free” doesn;t begin to cover it and we all pay those costs one way or another. The biggest cost is people not working and not adding to the system.
The cost of people not working that the administration isn’t just hitting in the present. The biggest chunk is how the carry forward cost of all those people not working is going to affect the future, both on an individual ad country level. The money borrowed to keep people not working will have to be paid back. And where will come the work force needed to support that? That’s the big thing not mentioned in the jobs report.
The Dysfunctional Economy Series
For more on the dysfunctional economy click Here or on the tag below.