Posted on 12/02/2015 5:29:44 PM PST by ForYourChildren
The Labor Department is expected to report that the economy added 200,000 jobs in November. That's in line with the average so far this year - 206,000 - but below the 2014 monthly pace of 260,000.
The unemployment rate is down to 5.0 percent from the recession high of 10 percent, largely because fewer adults are looking for work.
Since the recovery began, GDP growth has averaged 2.1 percent and the economy has added 12.6 million jobs. Growth should pick up to 2.5 to 3 percent next year, but here are five reasons why jobs creation will still disappoint.
1. Frightened consumers
Household spending accounts for about two-thirds of the economy and right now, consumers are reluctant to spend.
Slow growth and instability in China and terrorist attacks in Europe don't help but the constant drumbeat from the White House that most Americans are victims of racism, sexism or the evil machinations of the top 1 percent doesn't boost optimism either.
In this dour environment, new home sales and construction, though improved, are not even half their pre-recession levels.
2. Strong dollar
Over the last two years, the dollar is up about 18 percent against the euro, yen and other currencies, making U.S. goods and services more expensive, boosting imports and curbing exports. Along with higher corporate taxes, that discourages investment in the United States.
3. Productivity growth
In 2015, many Obamacare mandates for small business kicked in and raised labor costs. Along with higher minimum wages in San Francisco and other cities, those have caused some small businesses to close and others to try to find cost cuts elsewhere.
During the early years of the recovery, businesses were reluctant to invest to improve worker productivity, and employment grew faster than economic growth warranted. However, since spring, productivity has picked up to about 2 percent - in line with the historical norm. This should support modestly better wage gains, but it does help explain the slower pace of jobs creation this year.
4. Myth of college graduate underemployment
Scores of college graduates work in jobs that historically did not require a degree, but many BAs may be well placed as Starbucks baristas. Tests administered by the Council for Aid to Education indicate 40 percent of recent graduates are not proficient in the basic problem-solving skills normally associated with a college education.
At the same time, many high paying blue-collar jobs in manufacturing and other technical areas go begging because community colleges do not enroll enough students in vocational programs.
5. Stranded rural workers
Urban areas have more than recovered all the jobs lost during the financial crisis, while employment outside of metro areas has lagged. And many rural workers cannot afford to relocate for $10 to $15 an hour jobs in restaurants, dry cleaners and health clubs catering to highly paid urban professionals.
Paradoxically, now the Obama administration is worried that the proliferation of state licensing requirements-often advocated by unions-discourages labor mobility, and that city zoning laws raise rents, curb labor mobility and exacerbate inequality.
More regulation to spread the wealth and accomplish fairness? Sometimes the cure is worse than the disease!
The unemployment rate is down to 5.0 percent from the recession high of 10 percent, largely because fewer adults are looking for work.
Five reasons: Obama, Democrats, Obama, Obama, GOPe
Obamacare. The middle class is finding itself and its employers being forced to pay $$ thousands more for health-care.
That is money on non-productive wasteful activity (a wealth destroyer) that is not spent elsewhere.
That is certainly not the view of the health-care professionals who receive this money.
Obamacare isn't healthCARE (and never was) it is health INSURANCE.
A buttload of people have LOST insurance thanks to Obamacare.
Three doctors I know of have retired or quit because of Obamacare.
I notice falling oil prices and an imploding upstream oil industry were not given any credit, but around these parts the effect is significant.
The year ahead will illustrate perfectly just how much the energy sector was keeping the overall economy afloat.
Under the law, at least 80% of the money paid for health insurance must be spent on payments for actual health care. The entire overhead and profits of the insurance companies is limited to 20% of the revenue.
1) Because we are importing everything from elsewhere.
That is why.
America needs jobs once again.
How about...
#1. Beginning with the TARP bailout under GW Bush, and continuing under Obama, the US government has attempted to paper-over the economic problems of a few major, well connected corporations with taxpayer money rather than allowing the bankruptcy laws work as they are intended.
General Motors could have reorganized and re-emerged as a leaner, more focused car builder and actually gotten something for the HUMMER line that was essentially given to China. Instead they produce hybrid cars below cost that nobody wants to buy.
The whole scheme has only prolonged the recession in the efforts of not letting it get “too bad” for a shorter period of time.
#2 thru 5: see 1.
Funny you should ask. Doctor reimbursement increased 2% under the ACA as an inducement to treat additional Medicare and Medicaid patients. Also the 2010 American recovery Act gave doctors and healthcare organizations sizeable bonuses to offset the cost of switching to EHR's, A lot of these payments will end or be reduced in 2016, but the profession is not going broke under the ACA through this point in time.
Weak, how can that be? Yellen wants to raise Interest Rates because the Economy is humming along.
Well, that’s the sugar. Wait until the bitter aftertaste hits later.
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