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Jobs and Trade Deficits
Location: Blogs Russ Henke |
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| Posted by: Russ Henke |
10/9/2007 4:44 PM |
Most economic writers hailed the monthly unemployment report from the Labor Department last Friday October 5, 2007, as evidence that a US recession is now less likely. Net jobs created in September 2007 were a “healthy” 110,000, they gushed. The same writers also seemed pleased that the originally reported loss of 4000 jobs in August, was restated as a net gain for August of 89,000. The stock markets dutifully rose.
However, few writers pointed out the troubling facts behind those numbers. First, as has been mentioned in this blog space before, figures like 100,000 new jobs in a month are far below the levels needed just to take care of the number of people entering the US job market every month from sheer population growth. Indeed, the unemployment “rate” rose in September to 4.7%, the highest in just over a year.
Second, one has to look at exactly what sectors of the US economy are producing the gains. In September, the increases came from services that produce little real wealth or productivity increases: health services, professional services, leisure and hospitality, and still more government jobs. The sectors that do create national wealth, such as manufacturing and construction, continued to show severe job losses. And the revised payroll figure for August? It mostly reflected a big gain in…you guessed it… government employment.
At least the common people seem to get it. The latest reports of employment conditions across the country have caused Bush’s approval-ratings to tank even further. A record-low of only 34% approve of Bush’s handling of the economy in October, according to an Associated Press-Ipsos poll.
Oh, by the way, Blackstone is back in the news. Patrick J. Buchanan reported in his October 8 column that China, with currency reserves now estimated at US $1.3 trillion, has bought a 10% interest in Blackstone, now America's second largest private equity firm. Oh, swell.
Buchanan also mentioned that Huawei Technologies, a firm linked to the Chinese military, now seeks a merger with 3Com, a company that provides the Pentagon and US Army with intrusion detection equipment to keep hackers out. In July, Chinese military hackers were discovered trying to break into a computer system close to Defense Secretary Robert Gates.
So this is what happens when the US runs a disastrous trade deficit every year.
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Re: Jobs and Trade Deficits |
By bseitz on
10/30/2007 9:16 AM |
| With the Fed lowering rates for commerical organinzations, a planned bailout for the banks involved with the mortgage scandel and no real assistance to the average consumer as fuel prices rise, will Bush Jr. be known in hisotry as the Hoover of his generation. Standing by as his inaction and policies destroy the stadard of living for the majority of American citizens? |
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Re: Jobs and Trade Deficits |
By Russ Henke on
10/30/2007 10:07 AM |
| The current administration makes Hoover's look heroic! It will take the US generations to recover for the last 7 years, even if there are no further invasions, recessions, etc. before January 20, 2009. |
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