Bottom line: Hope that the radical Keynesians are not smoking legal pot when they claim the US economy can continue indefinitely to borrow from the rest of the world.
Thursday, October 09, 2014
COTW: Bread & Circuses
David Stockman has seen the light and is talking the talk. Regan's former bad boy of the budget tells us what many of us already instinctively know: the job numbers are bogus, period. He says the Second Great Depression resulted in the lost of 5.7 million middle-class jobs; those are permanent, 40 hours-per- week jobs on which a person can raise a family. Stockman labels these "breadwinning jobs". New jobs are temporary or part-time because no employer wants to be stuck paying for benefits. These 'McJobs' only pay about 40% of a real job. Consequently the average weekly number of hours worked is still going down, a trend that has continued since Nixon:
Fifteen years of money printing for the rich and connected, causing the Fed balance sheet to explode in size 9 times, has done almost nothing for Mainstreet while further enriching the financial elite of Wall Street:
The part-time economy maybe bustling as we serve each other drinks and tacos while your hotel bed is made and you shop for shoe repairs, but actual goods-producing jobs have yet to recover fully from the Second Great Depression. Only 21% of those jobs have been recovered. Stockman says manufacturing jobs are 22% lower than they were at the turn of this century: