Posted on 08/10/2005 6:55:00 AM PDT by SirLinksalot
Watching the Economy Crumble
Paul Craig Roberts
Wednesday, Aug. 10, 2005
The United States continues its descent into the Third World, but you would never know it from news reports of the Bureau of Labor Statistics' July payroll jobs release.
The media give a bare-bones jobs report that is misleading. The public heard that 207,000 jobs were created in July. If not a reassuring figure, at least it is not a disturbing one. On the surface, things look to be pretty much OK. It is when you look into the composition of these jobs that the concern arises.
Of the new jobs, 26,000 (about 13 percent) are tax-supported government jobs. That leaves 181,000 private sector jobs. Of these private sector jobs, 177,000, or 98 percent, are in the domestic service sector. Here is the breakdown of the major categories: 30,000 food servers and bartenders, 28,000 health care and social assistance, 12,000 real estate, 6,000 credit intermediation, 8,000 transit and ground passenger transportation, 50,000 retail trade and 8,000 wholesale trade.
(There were 7,000 construction jobs, most of which were filled by Mexicans.)
Not a single one of these jobs produces a tradable good or service that can be exported or serve as an import substitute to help reduce the massive and growing U.S. trade deficit. The U.S. economy is employing people to sell things, to move people around, and to serve them fast food and alcoholic beverages. The items may have an American brand name, but they are mainly made off-shore. For example, 70 percent of Wal-Mart's goods are made in China.
Where are the jobs for the 65,000 engineers the United States graduates each year? Where are the jobs for the physics, chemistry and math majors? Who needs a university degree to wait tables and serve drinks, to build houses, to work as hospital orderlies, bus drivers and sales clerks?
In the 21st century, job growth in the U.S. economy has consistently reflected that of a Third World country – low-productivity domestic services jobs. This goes on month after month and no one catches on – least of all the economists and the policymakers.
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Important article bump.
>>>"30,000 food servers and bartenders, 28,000 health care and social assistance, 12,000 real estate, 6,000 credit intermediation, 8,000 transit and ground passenger transportation, 50,000 retail trade and 8,000 wholesale trade."
I wonder how the average wage of these jobs compares to the jobs eliminated in the huge corporate layoffs announced last month.
Hoppy
Do you feel safer now that George Bush’s and Tony Blair’s barbaric attacks on Iraq have brought barbaric attacks to London?
Roberts has an agenda and it is to not credit the Bush administration with anything.
I wonder how long you'll be with us before your posts and remarks succumb to your hatred of the right?!?
USA = FULL EMPLOYMENT
As long as Bush continues to operate with Mao’s belief that power comes out of the barrel of a gun, terrorism will prosper and people will die for no reason except their refusal to hold corrupt leaders accountable.
Most people in engineering will tell you that there is a serious shortage of engineers in the U.S. today, and yet this guy acts as if most engineering graduates are working as waiters or bartenders.
Engineers work in sectors. Engineering is not a sector. (As far asI know)
Not a single one of these jobs produces a tradable good or service that can be exported or serve as an import substitute . . . blah blah blah
USA = FULL EMPLOYMENT
5% unemployment=Bush's fault.
Willie? Is that you?
Roberts just hates it that his stupid predictions have been as far off as that boob Paul Krugman. In fact, these two should have a gay marriage. I'm sure they'd be quite happy together.
USA = FULL EMPLOYMENT
Now if illegal immigrant employment was considered, what would the employment figures be like? Get rid of the illegals and would unemployment be around 1%?
"Of the new jobs, 26,000 (about 13 percent) are tax-supported government jobs. That leaves 181,000 private sector jobs. Of these private sector jobs, 177,000, or 98 percent, are in the domestic service sector. Here is the breakdown of the major categories: 30,000 food servers and bartenders, 28,000 health care and social assistance, 12,000 real estate, 6,000 credit intermediation, 8,000 transit and ground passenger transportation, 50,000 retail trade and 8,000 wholesale trade.
(There were 7,000 construction jobs, most of which were filled by Mexicans.)"
It explains why the President was hiding in the barn all day friday when these GREAT numbers came out.
I work in IT. A year or so ago, the credit card company I used to work for decided to outsource IT which for that particular company amounted to about 1100 jobs. The outsourced positions would be filled by a combination of local, remote and offshored roles.
I left the company before the outsourcing deal was announced in May because I got a better offer, hated the stress of outsourcing, and didn't want to re-enter a potentially flooded job market in my mid-sized city.
Only 20% of the existing staff was hired by the company what was awarded the sourcing contract. I keep in regular contact with my friends and associates there; most all of which are unemployed and on severance. Without exception they are receiving very lucrative job offers, often being "cold called" by headhunters with open positions.
If I believed only doom-and-gloomers such as Paul Craig Roberts it would be impossible to believe that hundreds of folks making high-five and low-six figure salaries would be able to find opportunities elsewhere; usually with a hefty pay increase.
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