The report provides the latest evidence that the economy lacks the momentum to make a dent in the unemployment rate. It takes roughly 100,000 to 120,000 new jobs a month just to keep unemployment from rising, which the economy failed to do in July. That is because despite July’s impressive gains the U.S. economy has added an average of only 105,000 jobs a month over the past three months.
“We’re treading water,” said Stephen Stanley, chief economist at Pierpont Securities. “We’re not falling down, but we’re also not making up any ground. We’re not getting any closer to a normal type of employment reading.”
Read it all, and make sure to focus on the rate that matters, which is U-6 as we have discussed many times before, it ticked up to 15% this month; in March it was 14.5%–KSH.
No government will report the true unemployment figures. Those that gave up looking (including myself) are still out of work. I am lucky enough to turn being laid off into retirement after sending out over 600 resumes and applications in late 2008 and not finding any work that I could do. Because of age I physically can not do some jobs that I could have. With degrees in Finance and Banking and Sociology, there are not many jobs in the area where I live. No matter, I am still unemployed but am one of those that are not counted anymore in statistics. The tax raising and spending that our Federal Government is committed to has been proven over and again not to work. When you take money out of the private sector, that is money that can not create goods, jobs, or services. The socialist model that the current administration is laboring under is a failed idea that no country can sustain. The Soviet Union had a great supply of natural resources to sell on the world markets and plenty of people to produce and distribute these goods. But, the people were burdened under a system that took away all incentive to succeed, much like “you didn’t build that”. Why would anyone want to work hard, innovate, create etc. when the government takes it all away? That is happening here. As we see more and more people totally dependent on government handouts, we see less and less innovation, education, aspiration and success. When there is no reward beyond subsistence, there is not drive to excel. When government decides what will be produced by whom where and at what price and how it will be done, efficiency goes down, profit goes down and malaise sets in taking away the desire to succeed. Hopefully the people of this country are ready to stop the Marxist/socialist ideology that has taken over and get back to the capitalist ideals that built this once great country. American exceptionalism did exist and deep down still does. As long as politicians deny it and go around apologizing to the world, America will remain in a state of suspened initiative and a decling economy. Everyone can not be wealthy in any country and any politician that tells you differently is either totally ignorant themselves or lying to you. We can not sustain the debt that has built up, the burdensome regulation on business, the tax rates, and most of all the government spending. With the highest corporate tax rates in the world, why would any business want to locate in the United States? With a federal government that is trying to protect forced unionization of workers, why would any company want to come here? Look around the last few years. The havey industry that has located in the US such as Toyota, Honda, etc have all gone to states that have “right to work laws. They pay a better than average wage, produce superior products and make a profit for the investors. Washington through the NLRB wants to tell them they must accept forced unionization. Please, tell me what the unions have done lately but drive up costs, buy politicians, and drive American jobs overseas. At one time the unions did perform a valuable service to the American worker, but what do they really do now but drive up costs, try and buy politicians, and bankrupt local governments and companies.