posted on August 12, 2005 08:26:02 AM new
Watching the Economy Crumble
By PAUL CRAIG ROBERTS
The US 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 gives 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%) are tax-supported government jobs. That leaves 181,000 private sector jobs. Of these private sector jobs, 177,000, or 98%, are in the domestic service sector.
Here is the breakdown of the major categories:
• 30,000 food servers and bar tenders;
• 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 immigrants.)
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 US trade deficit. The US 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% of Wal-Mart’s goods are made in China.
Where are the jobs for the 65,000 engineers the US 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 US 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.
Economists assume that every high productivity, high paying job that is shipped out of the country is a net gain for America. We are getting things cheaper, they say. Perhaps, for a while, until the dollar goes. What the cheaper goods argument overlooks are the reductions in the productivity and pay of employed Americans and in the manufacturing, technical, and scientific capability of the US economy.
What is the point of higher education when the job opportunities in the economy do not require it?
These questions are too difficult for economists, politicians, and newscasters. Instead, we hear that “last month the US economy created 207,000 jobs.”
Television has an inexhaustible supply of optimistic economists.
Last weekend CNN had John Rutledge (erroneously billed as the person who drafted President Reagan’s economic program) explaining that the strength of the US economy was “mom and pop businesses.” The college student with whom I was watching the program broke out laughing.
What mom and pop businesses? Everything that used to be mom and pop businesses has been replaced with chains and discount retailers. Auto parts stores are chains, pharmacies are chains, restaurants are chains. Wal-Mart, Home Depot, and Lowes, have destroyed hardware stores, clothing stores, appliance stores, building supply stores, gardening shops, whatever--you name it.
Just try starting a small business today. Most gasoline station/convenience stores seem to be the property of immigrant ethnic groups who acquired them with the aid of a taxpayer-financed US government loan.
Today a mom and pop business is a cleaning service that employs Mexicans, a pool service, a lawn service, or a limo service.
In recent years the US economy has been kept afloat by low interest rates. The low interest rates have fueled a real estate boom. As housing prices rise, people refinance their mortgages, take equity out of their homes and spend the money, thus keeping the consumer economy going.
The massive American trade and budget deficits are covered by the willingness of Asian countries, principally Japan and China, to hold US government bonds and to continue to acquire ownership of America’s real assets in exchange for their penetration of US markets.
This game will not go on forever. When it stops, what is left to drive the US economy?
Absolute faith has been shown, consistently, to breed intolerance. And intolerance, history teaches us, again and again, begets violence.
----------------------------------
President George Bush: "Over time the truth will come out."
President George Bush: "Our people are going to find out the truth, and the truth will say that this intelligence was good intelligence. There's no doubt in my mind."
Bush was right. The truth did come out and the facts are he misled Congress and the American people about the reasons we should go to war in Iraq.
posted on August 12, 2005 08:41:07 AM newThe media gives a bare bones jobs report that is misleading
Thats rich, a liberal bashing his own main stream media.
"Why, it appears that we appointed all of our worst generals to command the armies and we appointed all of our best generals to edit the newspapers. I mean, I found by reading a newspaper that these editor generals saw all of the defects plainly from the start but didn't tell me until it was too late. I'm willing to yield my place to these best generals and I'll do my best for the cause by editing a newspaper." --Robert E. Lee
posted on August 12, 2005 08:58:25 AM newThats rich, a liberal bashing his own main stream media.
Yeah and who on this board keeps saying how well the economy is doing and keeps everyone updated on the number of jobs that are created each and very month.
I know this does not concern you at all:
What is the point of higher education when the job opportunities in the economy do not require it?
Absolute faith has been shown, consistently, to breed intolerance. And intolerance, history teaches us, again and again, begets violence.
----------------------------------
President George Bush: "Over time the truth will come out."
President George Bush: "Our people are going to find out the truth, and the truth will say that this intelligence was good intelligence. There's no doubt in my mind."
Bush was right. The truth did come out and the facts are he misled Congress and the American people about the reasons we should go to war in Iraq.
posted on August 12, 2005 09:19:11 AM new
If you libs would stop buying all the imported products & "BUY AMERICAN", the situation would be reversed.
"Why, it appears that we appointed all of our worst generals to command the armies and we appointed all of our best generals to edit the newspapers. I mean, I found by reading a newspaper that these editor generals saw all of the defects plainly from the start but didn't tell me until it was too late. I'm willing to yield my place to these best generals and I'll do my best for the cause by editing a newspaper." --Robert E. Lee
posted on August 12, 2005 10:43:10 AM new
LOL.....and here, once again, we are expected to that these posted stats FROM WHOM?????
Our economy IS on strong footing....the job market KEEPS improving....the unemployed numbers are now down to what's ALWAYS been considered FULL employment.
AND yes, jobs in certain catagories are decreasing or only increasing slightly....BUT...what the liberals refuse to SEE is that jobs in other industries such as the health care field are growing rapidly.
Get educated....quit bitching....jobs are out there....you just have to get qualified for them.
Weren't YOU the one who was ALWAYS stating 'things change', logansdad? Well...that's what's happening in the job market right now....they're changing.
"Whenever the nation is under attack, from within or without, liberals side with the enemy. This is their essence." --Ann Coulter
And why the American Voters chose to RE-elect President Bush to four more years. YES!!!
posted on August 12, 2005 05:01:07 PM newGet educated....quit bitching....jobs are out there....you just have to get qualified for them.
With that cheerleading chant, you should get a job down at the enemployment office. I am sure all those looking for jobs need to hear that.
Absolute faith has been shown, consistently, to breed intolerance. And intolerance, history teaches us, again and again, begets violence.
----------------------------------
President George Bush: "Over time the truth will come out."
President George Bush: "Our people are going to find out the truth, and the truth will say that this intelligence was good intelligence. There's no doubt in my mind."
Bush was right. The truth did come out and the facts are he misled Congress and the American people about the reasons we should go to war in Iraq.
posted on August 12, 2005 05:44:26 PM new
Hey Linda_K, I really like you posting the "GOOD NEWS" July job report. I just wish for once you would tell the whole story and truth. I am waiting for more of your "good news" about the August job report and this time tell the whole story and truth will ya.
THE SHARKS ARE CIRCLING THEY SMELL RIGHT WING CON-SERVATIVE BLOOD IN 2006. YES!!!
It seems the housing market is leveling off. I wonder if that is more "good news" for the job market.
Now that G.M. has reduced car prices to clear out overstock. I am wondering what "good news" there will be in the auto industry in the coming months.
I am wondering if the FORTUNE 500 C.E.O.s who got a 54% raise in pay last year is "good news". Many of the same C.E.O.s are saying they must cut pay and benefits for the companies workers.
YES!!! Linda_K you are right "Our economy IS on strong footing" for the RICH.
posted on August 12, 2005 07:17:12 PM new
Hey Ron, This post is about jobs. Do you have anything to add to this post of "More Good news about job creation"?
posted on August 12, 2005 07:18:27 PM newBUT...what the liberals refuse to SEE is that jobs in other industries such as the health care field are growing rapidly.
That's good news. The high paid nurses and doctors can take care off all people with low paying jobs that can not afford health care.
Absolute faith has been shown, consistently, to breed intolerance. And intolerance, history teaches us, again and again, begets violence.
----------------------------------
President George Bush: "Over time the truth will come out."
President George Bush: "Our people are going to find out the truth, and the truth will say that this intelligence was good intelligence. There's no doubt in my mind."
Bush was right. The truth did come out and the facts are he misled Congress and the American people about the reasons we should go to war in Iraq.
posted on August 12, 2005 07:24:37 PM new
Well you keep screaming about sharks. Thought that that was pertinent to see if you saw my post on the subject.
