Obama pouring gas on a burning building in this Branco cartoon of the Obama recovery
Great news on the economy! The slow, sluggish, mediocre growth in jobs and the economy, propped up by funny money from Bernanke, continues on its upward path.
The economy added 162,000 jobs instead of the expected 182,000. Oh well. Job growth is down from the earlier part of this year.
Previous numbers were revised downward as usual. Jobs created in May were not the stated 195,000, but rather they were 176,000. In June, jobs created went from 195,000 to 188,000. Funny how they ALWAYS over-estimate.
The June increases were due in large part to the increase in part-time work -80% – which we can largely attribute to Obamacare.
Unemployment dropped to 7.4%. The real unemployment – the U6 number – went down from 14.3% to 14%. Participation in the workforce ticked down from 63.5 to 63.4 – about 250,000 – there are fewer people in the workforce.
The average workweek fell by 0.1 hour in July to 34.4hours. The crucial 40 hour workweek is becoming a thing of the past.
The new normal is a sluggish recovery that can’t create enough jobs to sustain job gains consistent with an unemployment rate of 7%. Bernanke is currently bailing us out with an $85 billion a month bond purchasing program.
The Commerce Department said the economy during the first quarter grew at 1.8% but that is not so, it was a barely perceptible 1.1%. People were surprised and their surprise surprises me – it’s almost ALWAYS revised downward. Now they say the second quarter will be 1.7%. Don’t bet on that.
The Commerce Department consistently revises the way it calculates GDP and it is always in the government’s favor. This has been going on for more than a decade. Software purchases are not expenses, they’re investments. R&D purchases are now treated the same way. Funniest of all are the pensions people don’t yet have – they are counted as current income and faux ‘savings.’