Paul Craig Roberts
Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. His latest book, The Failure of Laissez Faire Capitalism and Economic Dissolution of the West is now available.
Do you remember the promise of the New Economy that was going to replace the lost “dirty fingernail” manufacturing jobs with innovative highly paid New Economy jobs? Well, the promise was just another deception from the elites who have stolen Americans’ future.
For the umpteenth consecutive month and year, the June BLS payroll jobs report (released on July 5) shows that the US economy has created no such jobs. The same old tired categories account for the same old lowly paid new domestic service jobs.
Of the 195,000 new private sector jobs alleged to have been created, 75,000 or 38% are accounted for by the category “leisure and hospitality.” Within this category there were 52,000 new waitresses and bartenders, and 19,000 jobs in “amusements gambling, and recreation.”
Retail trade added 37,000 employees. Is your local shopping center that busy?
Wholesale trade added 11,000.
Zero Hedge points out that the retail and wholesale jobs numbers seem inconsistent with the latest report from the Institute of Supply Management, which shows a sharp drop in new order components and business activity. http://www.zerohedge.com/news/2013-07-03/non-manufacturing-ism-crashes-lowest-february-2010-new-orders-devastated-july-2009-l Perhaps the New Economy’s inefficiency requires more people to sell less.
Professional and business services added, allegedly, 53,000 jobs, which are largely building management services, janitors, employment services, and temporary help.
Ambulatory health care services added 13,000 jobs.
Financial activities allegedly added 17,000 jobs despite the Bank of America moving its property appraisals to India. http://www.bizjournals.com/charlotte/blog/morning-edition/2013/07/bank-of-america-routing-property.html?ana=lnk
Local government, despite severe budget cuts, added 13,000 jobs.
The BLS news release points out that the number of involuntary part-time workers (the number of people who are unable to find full-time jobs or whose hours were cut back) increased by 322,000 in June to 8.2 million.
This deplorable report provided the cover for the market riggers to take the stock market up and the gold market down. Remember that economic theory about “rational markets”? Another deception.
After reading my account of today’s payroll jobs report, please proceed to today’s main article, “Lawlessness Is The New Normal.”
Phi Beta Iota: Nothing the US Government publishes appears to be completely trustworthy. Based on the work of more honest economists less subject to political manipulation, the actual unemployment rate in the USA today is 22.4%, while the unemployment rates among recent college graduates and folks over 50 is closer to 40%. As the above article notes, those forced into part time work for lack of full time jobs is now at 8.2 million, and that number is probably severely under-estimated, we would guess it is closer to 20 million.