Friday, August 30, 2013

Killing the Golden Goose - Jobs Won’t Keep Pace

People Not In Labor Force Soar By 663,000 To 90 Million, Labor Force Participation Rate At 1979 Levels byTyler Durden

Things just keep getting worse for the American worker, and by implication US economy, where as we have shown many times before, it pays just as well to sit back and collect disability and various welfare and entitlement checks, than to work .The best manifestation of this: the number of people not in the labor force which in March soared by a massive 663,000 to a record 90 million Americans who are no longer even looking for work. This was the biggest monthly increase in people dropping out of the labor force since January 2012, when the BLS did its census recast of the labor numbers. And even worse, the labor force participation rate plunged from an already abysmal 63.5% to 63.3% - the lowest since 1979!  But at least it helped with the now painfully grotesque propaganda that the US unemployment rate is "improving."


Comments:

US population has increased 40% from July 1, 1979 pop.      225,055,487  to   July 1, 2013  pop. 316,530,000. The US    added about 91 million

Total immigrants in the US in 1970 was 10 million or 4%  In 2013 it’s 40 million or 13%. Since 1990, we have added 130 million immigrants to the US population.  Increasing immigration to almost 1.9 million a year does not grow the economy, it eats up most of the jobs that would have gone to US citizens.

In 1970, most households were single earner with stay-at-home moms.  After 1980 most moms went to work.

Job growth continued from 1978 from 63%, peaked in 1990 at 66.8% and peaked again at 67.5% in 2000.  It has declined since 2000 and is now at 58%.  The difference is that we now have 91 million more people.

Currently the US has 144 million employed and 90 million unemployed. Our total potential workforce is 234 million. Using our total potential workforce, we currently have 39% unemployed and 61% employed.

Data Sources: BLS &  Migration Policy Institute

Our economy and the stock market have been artificially propped up by 30% thanks to Federal Reserve money printing.  This is having no effect on lowering our high unemployment.  We just have too many people and not enough jobs.

Job creation at its best requires increases in productivity. In the 1980s, the invention of the PC provided the electronics manufacturing jobs to grow the economy.  In the 1990s our economy took a hit with the passage of NAFTA and many auto and other durable goods manufacturing jobs were off-shored.  By 2000, the electronics manufacturing jobs were heading overseas and we were buying everything from China and other countries.  We failed to close our borders or curtail immigration, so our unemployment started to climb.

The 2008 meltdown accelerated our decline and our economy tanked.  Our GDP peaked at $16 trillion, but the floor of our real economy is about $12 trillion.  We do have an economy and it could be improved by increasing our production of what we have left to offer. 

We could be energy independent.  We could be exporting coal, natural gas, food, minerals and lumber.  We could repeal regulations based on junk science and lower taxes on manufacturing.  We could shut down immigration and close our border.   We could repair our ageing water pipes and build more reservoirs. We should close unconstitutional federal departments and agencies and reduce the federal footprint. Our federal government is killing the US economy.

Norb Leahy, Dunwoody GA Tea Party Leader

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