Michael Snyder at Zero Hedge has 37 reasons why the talk in portions of the mainstream media about an economic recovery is utter rubbish:
There has been absolutely no employment recovery. The percentage of Americans that are actually working has stayed between 58 and 59 percent for 51 months in a row. But most Americans don’t understand these things and they just take whatever the mainstream media tells them as the truth.
And of course the reality of the matter is that we should have seen some sort of an economic recovery by now. Those running our system have literally been mortgaging the future in a desperate attempt to try to pump up our economic numbers. The federal government has been on the greatest debt binge in U.S. history and the Federal Reserve has been printing money like crazed lunatics. All of that “stimulus” should have had some positive short-term effects on the economy.
Sadly, all of those “emergency measures” do not appear to have done much at all. The percentage of Americans that have a job has stayed remarkably flat since the end of 2009, median household income has fallen for five years in a row, and the rate of homeownership in the United States has fallen for eight years in a row. Anyone that claims that the U.S. economy is experiencing a “recovery” is simply not telling the truth. The following are 37 reasons why “the economic recovery of 2013” is a giant lie…
#1 The only reason that the official unemployment rate has been declining over the past couple of years is that the federal government has been pretending that millions upon millions of unemployed Americans no longer want a job and have “left the labor force”. As Zero Hedge recently demonstrated, if the labor force participation rate returned to the long-term average of 65.8 percent, the official unemployment rate in the United States would actually be 11.5 percent instead of 7 percent.
#2 The percentage of Americans that are actually working is much lower than it used to be. In November 2000, 64.3 percent of all working age Americans had a job. When Barack Obama first entered the White House, 60.6 percent of all working age Americans had a job. Today, only 58.6 percent of all working age Americans have a job. In fact, as you can see from the chart posted below, there has been absolutely no “employment recovery” since the depths of the last recession…
#3 The employment-population ratio has now been under 59 percent for 51 months in a row.
#4 There are 1,148,000 fewer Americans working today than there was in November 2006. Meanwhile, our population has grown by more than 16 million people during that time frame.
#5 The “inactivity rate” for men in their prime working years (25 to 54) has just hit a brand new all-time record high. Does this look like an “economic recovery” to you?…
#6 The number of working age Americans without a job has increased by a total of 27 million since the year 2000.
#9 Only about 47 percent of all adults in America have a full-time job at this point.
We’ve reached the point in the election where the press decides to mostly report on how the election is being perceived rather than on any particular events, and since the president is doing well in the polls this results in a lot of “desperate Republicans do foolish things” stories. The flavor of the week seems to be the media’s discovery that somewhere out there in the right-leaning internet, there are people who have made a hobby of “re-weighting” polls in order to reflect what the re-weighters think is a more likely partisan composition of the electorate come election day.
There is, yes, a certain sad desperation about this. Now that election reporting is often more about “the race” than about issues or events, being behind in the race is crippling and so people come up with way to try to explain it away. Those with long memories (eight years counts as long in our modern age) may recall that when Bush was so rude as to be ahead of Kerry in the 2004 race, Michael Moore and those like-minded rolled out a theory that all the polls were wrong because an army of voters who only used cell phones and not land lines (and thus couldn’t be polled) were out there ready to vote against Bush.
However, just as everyone’s getting ready to announce that Republicans, in their constant flight from the “reality based community” have decided they don’t believe in polling, we find out that the left has its own reality problem: They’re convinced that the economy has been getting better over the last couple months, despite the fact there’s little reason to believe this. Gallup and the Pew Research Center both have data out showing that Democrats’ opinions of the economy and the job market have suddenly started improving, despite almost universally bad news over the last several months.
As you can see, partisan affiliation wasn’t much of a dividing factor in assessments of the economy a year ago, but now that a bad economy might mean President Obama not being re-elected, Democrats obediently come to the conclusion that the economy really isn’t that bad. According to Pew, the same divide now exists on the job market, consumer prices, the financial market, real estate, and even gas prices. You would think that at least people could agree on what the level of gas prices is, but no, apparently not, though the gap is narrower there than elsewhere: 89% of Republicans say they hear mostly bad news about gas prices while 65% of Democrats do.
The trope goes that you are entitled to your own opinions, but not your own facts. However, as the political divide has become wider and more entrenched opposite sides increasingly do have their own facts, as reality become filtered through a partisan lens.
Hattip to Ed Morrissey at Hot Air. Orders for durable goods dropped a calamitous 13.2% in August, the worst decrease since 2009.
New orders for manufactured durable goods in August decreased $30.1 billion or 13.2 percent to $198.5 billion, the U.S. Census Bureau announced today. This decrease, down following three consecutive monthly increases, was the largest decrease since January 2009 and followed a 3.3 percent July increase. Excluding transportation, new orders decreased 1.6 percent. Excluding defense, new orders decreased 12.4 percent. Transportation equipment, down following four consecutive monthly increases, had the largest decrease, $27.8 billion or 34.9 percent to $51.9 billion. Continue reading
Something for a weekend. A variant on the song of the First Great Depression, Buddy Can You Spare a Dime. It seemed timely in regard to the terrible economic news that came out this week:
1. AA- -Credit rating firm reduced the United States Credit Rating to AA-. Here is why
The firm said that while the program should boost equity markets, issuing additional currency and depressing interest rates through purchasing mortgage-backed securities will hurt the value of the U.S. dollar and cause a painful increase in commodity prices.
The ratio of U.S. debt to gross domestic product soared to 104% in recent months from 66% in 2006 and will likely increase to 110% in a year, the firm said. By comparison, Spain’s debt-to-GDP stands at 68.5%.
3. Industrial Production-Down-US industrial production fell 1.2% in August pointing to a slowing economy.
4. Unemployment-Fed analysts estimate that unemployment will not reach 7% until 2014. Continue reading
President Barack Obama, in one of his most dramatic gestures to business, will propose that companies be allowed to write off 100% of their new investment in plant and equipment through 2011, a plan that White House economists say would cut business taxes by nearly $200 billion over two years.
The proposal, to be laid out Wednesday in a speech in Cleveland, tops a raft of announcements, from a proposed expansion of the research and experimentation tax credit to $50 billion in additional spending on roads, railways and runways. But unlike those two ideas, both familiar from Mr. Obama’s 2008 campaign, the investment incentive would embrace a long-held wish by conservative economists that had never won support from either Republican or Democratic administrations.
The “means of production” (which may be defined, roughly, as consisting of capital goods minus human and financial capital), is a central concept in Marxism, as well as in other ideologies such as Distributism. The problems of capitalism, according to both Marxists and Distributists, arise from the fact that ownership of the means of production is concentrated in the hands of the few. Marxists propose to remedy these problems by having the means of production be collectively owned. Distributists want to retain private ownership, but to break the means of production up (where practicable) into smaller parts so that everyone will have a piece (if you wanted to describe the difference between the Marxist and Distributist solutions here, it would be that Distributists want everyone to own part of the means of production, whereas Marxists want everyone to be part owner of all of it).
Where a society’s economy is based primarily on agriculture or manufacture, thinking in terms of the means of production makes some sense. In an agricultural economy wealth is based primarily on ownership of land, and in a manufacturing economy ownership of things like factories and machinery plays an analogous role. In a modern service-based economy, by contrast, wealth is based largely on human capital (the possession of knowledge and skills). As Pope John Paul II notes in Centesimus Annus, “[i]n our time, in particular, there exists another form of ownership which is becoming no less important than land: the possession of know-how, technology and skill. The wealth of the industrialized nations is based much more on this kind of ownership than on natural resources.”
To follow up on my first installment of “Set Me Free (From Ideologies), I am going to draw again from the rich well of Pope Benedict’s powerful encyclical Caritas In Veritate. In this case it would seem that in paragraph #25 the Pope is sounding kinda liberal if we would attempt to fit the views expressed into one or another of our American political ideologies. Continue reading
In my brief life on earth I have not experienced such high unemployment amongst my family and friends this year than ever before. As each week passes I hear of another friend or acquaintance who has lost his or her job.
This is the worst recession I have seen and I don’t see any signs that it will let up for the next 9-12 months. So I find it appropriate that a simple request to all our readers to make time this evening prior to going to bed and include those that are unemployed, especially those with families and dependents in your prayers.
With extra time on our hands the unemployed can remain steadfastly busy by working on their faith through prayer and service. For when work does come around there will not be time for such activities.
The following prayer is a traditional Catholic prayer that I have used from time to time due to the nature of my work of being an independent contractor and one that helps to put life in proper perspective and order:
Dear Lord Jesus Christ,
You wanted all who are weary
To come to You for support.
Lord, I am worn out
By my inability to find work.
Guide my steps to a righteous path;
Give me the patience
To find opportunities with a future.
Calm my worries and fears
As my financial responsibilities mount.
Strengthen my resolve;
Embolden my heart to open doors;
Open my eyes to see life beyond rejections.
Help me believe in me.
Let me realize other ways
To bring about Your kingdom on earth.
Let me grow as a person
That I may be worthy
For Your greater glory.
In the name of the Father, Son, and Holy Spirit,
Saint Joseph has been especially helpful for me and I strongly recommend him for those seeking employment:
Dear Saint Joseph, you were yourself once faced with the responsibility of providing the necessities of life for Jesus and Mary. Look down with fatherly compassion upon me in my anxiety over my present inability to support my family. Please help me to find gainful employment very soon, so that this heavy burden of concern will be lifted from my heart and that I am soon able to provide for those whom God has entrusted to my care. Help us to guard against bitterness and discouragement, so that we may emerge from this trial spiritually enriched and with even greater blessings from God.
As the recession continue to take its toll on our fellow Americans, rendering more and more of them homeless, tent cities have begun sprouting up across this great country. It would not be fair to blame President Obama for the predicament that our nation is in, but President Obama has done nothing to help the situation.
President Obama’s ‘stimulus package’ only rewarded government contractors with more spending. It is also correct to point out that former President George W. Bush’s ‘stimulus package’ did nothing more than President Obama’s spending bill.
Small businesses and the private sector in general got almost zero benefit for either porkulus spending bills. Though this recession is typical of a business cycle, there are some things that can be done to alleviate the stress the economy is undergoing and maybe expedite the expiration of the current recession. President Obama has done neither.
So it is fitting and fair to label the tent cities that are sprouting across America as Obamavilles.
In recent years Halloween has gone from a primarily child-oriented holiday to an occasion of commercial importance comparable to Christmas or Easter. National retail sales figures indicate that Halloween is the 6th biggest holiday for retailers — behind Christmas, Valentine’s Day, Easter, Mother’s Day and Father’s Day — and rapidly gaining ground, particularly among young adults.
The trend has now sparked a movement of sorts — led by the Spirit Halloween retail chain — to move Halloween permanently to the last Saturday in October. Their online petition at this link (http://www.spirithalloweekend.com/ ) asks Congress to lend its official endorsement to the change, although that would not be strictly necessary since Halloween is not a federal or national holiday.
During these dismal economic days, we can always rely upon the comic stylings of Joe Biden to raise our morale, just as the American public during Depression I looked to the Three Stooges for comic relief. I assume Jolly Joe in the above video was thinking of the old Reagan line from Reagan’s 1980 campaign for President: “A Recession is when your neighbor loses his job. A Depression is when you lose your job. A Recovery is when Jimmy Carter loses his!” Needless to say, the brighter lights in the Administration were reaching for extra strength pain relief as they saw the human gaffe machine use the “D” word, especially since they have been attempting to convince a sceptical public that the recession is ending.
What makes this especially hilarious is that Newsweek, the unofficial house organ of the Obama administration, ran a puff piece on Biden last week entitled “Why Joe is No Joke” . Hint Joe, when you are a politician and one of the most sycophanic press journals on your side runs a story arguing that you are not a joke, that is most definitely not a good sign. Continue reading
A look at the federal budget since 2000, with projections, for what little they are worth, by the White House and the Congressional Budget Office to 2019. By CBO estimates last week, the budget deficits between now and 2019 would total $9, 300, 000, 000, 000.00. The entire cost of WW2 for the US in 2008 dollars was 3.6 trillion. This year the budget deficit will total 13% of our gross domestic product. This isn’t economic policy, it is lunacy. These type of deficits are completely unsustainable, and we are running towards national bankruptcy. It is impossible to borrow these type of funds from abroad. We will simply create the funds out of thin air. The long term impact on our children and their children can be easily imagined. As the Heritage Foundation points out, this is a completely bi-partisan disaster. Politicians have acted like teen-agers with stolen credit cards for far too long. However, this will stop. It will stop either by voters throwing out of office the fiscally irresponsible, or, much more likely in my estimation, the economy will simply hit a brick wall. This will not, cannot, go on. How it is stopped is up to us.
Update I: The President of the EU slams current US economic policy as a road to hell. I never thought I would live to see the day when a President of the EU would have more economic sense than a President of the US.
“Bond prices fell after the auction of $34 billion in 5-year Treasury notes. The yield on the benchmark 10-year Treasury note, which moves opposite its price, jumped to 2.77 percent from 2.71 percent late Tuesday. The yield on the three-month T-bill rose to 0.19 percent from 0.17 percent Tuesday.
Investors gave an unexpectedly cool response to the note sale just a day after a $40 billion auction of 2-year notes suggested strong demand. The government is running up huge deficits in order to fund an array of plans to provide stimulus to the economy and support to the ailing financial system. Any suggestion that demand for U.S. government debt is weakening is a negative for stocks, simply because Wall Street has been relying so heavily on the government’s rescue plans.
The surge of worry over the debt auction wiped out the market’s early optimism in response to durable goods and home sales data.”
As Glenn Reynolds at Instapundit notes here, since the passage of the Bankrupt the Nation Act of 2009, erroneously referred to as the Stimulus Bill, the Dow has lost over 1400 points. Since the election of President Obama, the Dow has lost over 2700 points as detailed here. However, in the midst of the greatest Bear market in a generation, our President has financial advice for us: Buy stocks!
Critics of the Bush Administration often complained (especially during his first term) that Bush used 9/11 as a justification for nearly everything he did. Given that the country was widely supportive of the administration in the years right after the attack, this was (the complaint went) a way for Bush to do things he’d wanted to do anyway under the guise of responding to an emergency. While I think this complaint was overstated, there is an element of truth to it. For instance, I don’t think there’s a whole lot of question that many within the administration (rightly or wrongly) wanted to get rid of the Baathist regime in Iraq even prior to taking office.
In this respect, Obama seems to have found his 9/11, his excuse for doing all the things he and his party want to do while assuring everyone it would be a Very Bad Idea it not Downright Unpatriotic for them to disagree. Obama’s 9/11 is the recession, or as the media seems to have named it “The Worst Economic Downturn Since the Great Depression”. (This is, to my mind, a rather unwieldy name. Perhaps we could just call it the “Big Recession” or the “Little Depression”?)
Thus, in his presentation of a new budget which is heavy on partisan measures (big tax increases on “the rich” and preparation for major changes in social service structure and spending) and racks up the largest deficit (as percentage of GDP) since 1942, Obama assured people that this was necessary in order to restore the economy:
It’s really not clear what the plan means; there’s an interpretation that makes it not too bad, but it’s not clear if that’s the right interpretation….So what is the plan? I really don’t know, at least based on what we’ve seen today. But maybe, maybe, it’s a Trojan horse that smuggles the right policy into place.
Not exactly an enthusiastic endorsement. Today’s Washington Post has some of the back story:
Just days before Treasury Secretary Timothy F. Geithner was scheduled to lay out his much-anticipated plan to deal with the toxic assets imperiling the financial system, he and his team made a sudden about-face.