Posted on 07/08/2014 4:20:59 AM PDT by markomalley
When everyone checks out of the labor market the unemployment rate goes down. It’s not unlike the management of “medical populations” we reported on over the weekend. If enough sick people die the overall population becomes healthier.
The truth is many people are scraping by. People are going into debt to buy food. Those who don’t have access to credit at all are often on food stamps, roughly 46 million Americans. Millions of people have pursued disability benefits as a way to make ends meet. Overall wages have been declining in a serious way since 2008 when adjusted for inflation. The average American household brings in 7% less in real terms than it did 6 years ago. Many recent college graduates still can’t find jobs. Those who do are often underemployed. A good number of these former students are also carrying tens of thousands in student debt.
But the stock market is going up. So everything is cool right?
Wrong. Big time wrong.
The markets are a valve for the easy money produced by the Federal Reserve. The perception is that even if all hell were to break loose the Fed wouldn’t let the stock market crash completely (assuming it still has the power to stop a crash). So those who have access to the easy money put their money in equities. It’s a way better bet than putting money into capital equipment for example – which would create real jobs – but which is much more exposed to any economic downturn.
No, much better screw around in the markets. Let the government (funded by taxpayers) throw some crumbs to the peasants and keep all that easy money where it can be protected, the stock market.
The truth is the people who run the show don’t really care about jobs so long as the malcontents can be salved with the welfare state. They, both Republicans and Democrats, just want to see their portfolios expand.
(From Real Clear Markets)
The data suggest a permanent rise in the number of Americans who expect to be supported by either family members or the government. Policy makers probably should put more effort into determining how the nation can afford all these millions of new non-workers. Entitlement reform and personal financial responsibility appear to be high priorities if our future is to be secured.
If you want a simple, clear explanation of why so many people seem to be struggling financially even if they have jobs, these numbers provide a pretty good answer. Each worker has to support more people than they used to: through taxes to fund welfare and entitlement programs or in their families where perhaps only one spouse is working, unemployed grown children have returned home, or elderly parents need financial support.
Makes me wonder, if things are this busy now, imagine how it will be should we ever get full employment again? I still have a 2-hour commute sometimes to go 25 miles and during the go-go 1980s, I never had much trouble getting a table at a restaurant if I wanted to go out to eat.
I'm in process of relocating to southern CT and the housing prices are insane. I'm talking half a million dollars just to get a basic home. Yet somehow they are finding people to pay these prices - otherwise they would come tumbling down.
I'm not saying people are not having a tough time of it but is it really as doom and gloom as some of us are making it out to be?
“But the stock market is going up. So everything is cool right?”
At this point the performance of the stock market is inversely related to the well-being of American workers; the surest way to drive up a stock’s price is to announce layoffs in the US. The reduced forecasted costs drive up the profitability of the company.
And the other 52.3% vote.
Most of the people I know working part-time, low-wage jobs do not go out except for very special occasions. And their cars are older. The retirees are keeping this mid-Florida area going.
Also, the only restaurant to build another store in this area is Chili's. There is only one Olive Garden, Outback, Carrabba's, Red Lobster, etc. and they have all been here for years. Yes, they're packed on weekends and most nights, but if so, why not build more stores? IDK.
47%, There it is again. Mitt is starting to sound prophetic.
The difference is rather simple, on Main St people rely on lasting value in the dollar and employment in production rather than services. Sure there are always services but they are not the mainstay of Main Street. On Wall St they rely on the debasement of the dollar, every single investor on Wall St makes money when the dollar is bebased, although some more than others. That debasement kills investment on Main St by mortgaging our future during each boom and bust. Meanwhile Wall St outsources all the production to China.
Everyone across the board needs to reject this bogus DOL “unemployment rate”. Because of all the meddling and trickery with how unemployment is counted, it’s high time to demand that the only acceptable metric is SELF-EMPLOYED/EMPLOYED ADULTS WORKING 40 HOURS A WEEK OR MORE AND PAYING INCOME AND SS TAXES.
We need to count the makers, the creators, the productive... and we need to let the takers, the destroyers, the parasites STARVE.
How many of that 47 percent employed are federal, state, county and city employees?
These are people on unemployment or welfare, driving on gas paid for with an EBT card. Where does a mid 20's person get the money for an Escalade with eight grand worth of 22" wheels? From the taxpayer. The same place they get their food and housing.
America imports far too much crap from elsewhere, particularly from China.
America really, really needs to bring back manufacturing.
Food has gone through the roof.
It must be your area. Last SUNDAY our Applebees had two customers the whole day. Or two tables I should say.
Sooner or later, there will no longer BE money to support the welfare program handouts as fewer and fewer people pay taxes. Perhaps it would be best if the entire nation decided to NOT PAY ANY taxes and shut the whole damn train wreck down.
There are a quite a few people that I've become aware of that have been living in their house for a couple years, but not paying on their mortgage. I attribute the above to this phenomenon. But I hear ya re: the restaurants...I wonder where all that money is coming from sometimes. There is a Portillos in my area with a drive thru...its ALWAYS packed with cars. I sometimes wonder if they are secretly accepting EBT cards.
There was this hippie looking dude in the Post Office yesterday, loud. Asking if all his social security paperwork was ok in one box (mid 40’s, healthy)
The guy at the counter assured him it was fine. The guy turns to the line on the way out, “I hate the friggin’ government’.
If they can get social security disability and smoke pot all day, why work?
The government manipulation of numbers is a shame and proves how corrupt the government is. I came across an older quarter today and it reminded me how our money was recently full silver. The debasement of our currency is another indication of corruption. Corruption and tyranny go hand in hand.
How?
Official statistics would only encapsulate official employment. Unofficial employment...not so much.
Look at it this way: dear leader has done an awesome job growing the economy. The shadow economy that is.
From what I've read and seen the economy still stinks in many areas of the country. However, that doesn't mean all economic activity has stopped in those areas. Let say you live in area where wages have stagnated. People might give up expensive hobbies and activities in order to maintain their regular lifestyle like going out to eat.
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