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
I was provoked by Tito’s recent post with a great cartoon on the economy. Like him I am greatly concerned about where the U.S. Dollar, our economy and country are headed. This post is related to an earlier post that Christopher Blosser and I co-posted on the Austrian School of Economics. Let me state from the beginning that I am neither an economist nor a certified financial planner. My opinions are worth the value of the cyber ink you are now viewing. It seems clear to me though that our economy is heading into a double-dip recession and possible depression, which is actually calling it what it is. I don’t see how the current policies and actions of the Treasury Department and Federal Reserve are helping the common man. The rate of interest for savings is so minimal now and for the foreseeable future that it can be compared to the sand under the ocean, not the raft-boat on top of the waves. Therefore what can we do to not lose and potentially grow our savings?
Next week, New Hampshire Republicans, and probably some irritating Democrats, will decide who the Republican Nominee is for the Republican New Hampshire Senate Candidacy. It appears to the best of my knowledge that Ovide Lamontange is the only consistent pro-life and limited government candidate on the ticket. I urge anyone you know who lives in New Hampshire to vote for Ovide. No, he’s not a genius, but he’s principled, more than the others. Primaries should be about principles. Playing Machiavelli can wait until November. We have to choose the right people to put up for office, and the right people are principled people who think that government is more than simply another way to stimulate the economy. We have a debased and corrupt form of politics that only recognizes the material dimension of our lives. We need candidates who understand that material life is not the only good, and that material well-being is in some way really dependent on our spiritual well-being. Our spiritual well-being is in a real way determined by our laws, and our politicians create our laws, not just “our jobs” (which is ridiculous, politicians don’t create jobs). We need to look for politicians who have but an inkling of an understanding of this countercultural idea. Our laws are not just about money; they are about truth and justice and goodness and even beauty.
Republicans are upset about not being in power. Republicans are not in power because they have failed to live up to their principles, and everyone knows it. Republican principles are good principles, and we should not concede them because we have hopes of winning an election. Republicans have won elections, and they have acted frivolously and ignorantly with their power because they were not principled. We need to elect politicians who will behave responsibly with their power, and not just win the election. Elections don’t matter; justice and truth do.
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