Posted on 12/07/2013 8:10:26 AM PST by whitedog57
Yesterday’s jobs report was tremendous … if you have been dumbed down. The sad facts are that U6 underemployment has been above 13% for 60 months, the last month below 13% was November 2008.
U6RATE_Max_630_378
And there are still 91.27 million people NOT in the labor force.
nilf120713
Income inequality, as measured by the GINI coefficient, continues to rise.
ginicoef2005
While real median household income has been falling since 2000 and house prices have been rising rapidly for the past two years.
realmedincomcase
What are the solutions to the employment problem? Nancy Pelosi (CA-D) made the following statement this past week:
“Economists agree that unemployment benefits remain one of the best ways to grow the economy …”
And Minnesota Congressman Keith Ellison (Democrat) Ellison and Rep. Raul Grijalva, the co-chairs of the Congressional Progressive Caucus, called on President Obama to use an executive order to raise the minimum wage for private-sector workers in jobs funded by federal dollars.
Sorry, Nancy, having a job trumps unemployment benefits as the best way to grow the economy. Almost 50% of Americans already receive money from the Federal government and 43% pay no Federal income taxes. And the economy is still growing at a very slow rate. Obviously, that plan isn’t working.
And raising the minimum wage argument of Ellison and community activists is flawed logic as well. Suppose that a workers is already paid more than the value of their marginal product of labor. Raising the minimum wage to even a higher level will likely causes employers to keep only those employees with the highest value of their marginal product (e.g., contributions dues to working fast and efficiently) and dismissing those employees with a lower value of marginal product (e.g., a painfully cashier). And technology will be substituted for labor when beneficial such as the automated pizza machine. Or teller machines at banks, or robots in auto manufacturing, or …
Pelosi’s idea is the same, tired, dependency model that is hurting Europe and the US economy. And raising the minimum wage when real household incomes are already falling is laughable (if it wasn’t so sad). To paraphrase Ian Malcolm from Jurassic Park, “The market will find a way.”
Speaking of the market finding a way, it is really amazing that serious mortgage delinquencies have declined to the levels that they are today, except for continuing “hot spots” like Florida. No, it wasn’t government programs like HAMP or HARP that delayed solving the problem. It is the natural market reaction to heal itself.
lpsserdelinq
Government policies, while often well-intended, usually result in a worsening of the problem that it intended to fix. So, Dr. Pelosi’s and Dr. Ellison’s “Labor Pain Dispellers” only magnify the pain.
victorian_miracle_cure_poster_dr_hobsons
U6RATE_Max_630_378 nilf120713 ginicoef2005 realmedincomcase!
But the job statist reported by the scumbag media sez we are coming back and employment is up for November, godd signs that we are roaroing back and the zombies eat this up not realizing because they cant think for themselves that employment is up temporarly because of christmas. Talk to me in January. Hey hows those 15 dollar an hr jobs flipping hamburgers at Mcdonalds working out?
I can see the regular MSM covering for zero’s unemployment numbers; however FOX never discusses the actual number with zero’s when discussing the unemployment numbers.
More and more records for this administration.
And they still vote for them proof that dumbing down works on the slow one’s.
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