As my 401k continues to tank, I remembered this article by that lefty Paul Craig Roberts.
The Assistant Secretary of the Treasury in the Reagan administration and Associate Editor of the Wall Street Journal editorial page.A Nation of Waitresses and Bartenders?
The Bureau of Labor Statistics payroll jobs report released May 5 says the economy created 131,000 private sector jobs in April....
Most of the April job gain -- 72% --is in domestic services, with education and health services (primarily health care and
social assistance) and waitresses and bartenders accounting for 55,000 jobs or 42% of the total job gain. Financial activities added 26,000 jobs and professional and business services added 28,000. Retail trade lost 36,000 jobs.
During 2001 and 2002 the US economy lost 2,298,000 jobs. These lost jobs were not regained until early in February 2005. From February 2005 through April 2006, the economy has gained 2,584 jobs (mainly in domestic services).
The total job gain for the 64 month period from January 2001 through April 2006 is 7,000,000 jobs less than the 9,600,000 jobs necessary to stay even with population growth during that period. The unemployment rate is low because millions of discouraged workers have dropped out of the work force and are not counted as unemployed.
In 2005 the US had a current account deficit in excess of $800 billion. That means Americans consumed $800 billion more goods and services than they produced. A significant percentage of this figure is offshore production by US companies for American markets.
The US current account deficit as a percent of Gross Domestic Product is unprecedented. As more jobs and manufacturing are moved offshore, Americans become more dependent on foreign made goods. This year the deficit could reach $1 trillion.
The US pays its current account deficit by giving up ownership of its existing assets or wealth. Foreigners don't simply hold the $800 billion in cash. They use it to acquire US equities, real estate, bonds, and entire companies.
I'm sure glad those tax cuts are "stimulating"
the economy. Hey I have an idea, let's make them permanent.