The great late economist Milton Friedman once said, “Many people want the government to protect the consumer. A much more urgent problem is to protect the consumer from the government.”
It’s not only the government meddling we need to worry about, it’s their lying about it. So many are willing to pretend they believe them.
We are more than six years into this jobless recovery. Oh, no wait, it’s not jobless, it’s a recovery with more jobs for waiters and bartenders.
We’re going to need the bartenders.
Six plus years of left-wing policies under Obama is pushing us towards the cliff.
The recovery lie stays alive because of occasional bursts of hope.
David Stockman put it this way:
But the “recovery” narrative stays alive because there is always some stray factoids of seasonally maladjusted, yet-to-be-revised “incoming data” that can excite the MSM headline writers and bubble vision talking heads.
Today the data on construction spending and housing took their turn in the awesome circle. Thank heavens that the headline writing software used by the financial press doesn’t yet read graphical data. Otherwise they might have reported that private residential construction soared in July—–well, all the way back to January 2002 levels!
And those are the nominal dollars that the Fed has done its level best to depreciate in the 13 years since then. In fact, on an inflation-adjusted basis the housing construction spend is still at 1992 levels.
The unemployment rate is only 5.1%, down from July’s 5.3% but another 261,000 Americans dropped out of the work force.
Only 173,000 jobs were added.
From zero hedge: Another 261,000 Americans dropped out of the labor force, as a result pushing the total number of US potential workers who are not in the labor force, to a record 94 million, the highest since 1977 and an increase of 1.8 million in the past year, and a whopping 14.9 million since the start of the second great depression in December 2007 while only 4 million new jobs have been created.
Many of the 94 million are on the older or younger range and might not want to work but there is a trend here.
The BLS reported Friday that 56,253,000 women, ages 16 and older, were not participating in the workforce in August. That’s up 44,000 from July, when 56,209,000 women were neither employed nor had made a specific effort to find work in the four weeks prior.
The Dow dropped 272 points after the jobs report came out or 1.7%, to 16,102. The Standard & Poor’s 500 stock index dropped 30 points, or 1.5% to 1921. The Nasdaq composite declined 50 points, or 1.1% to 4684.
The unemployment rate of 5.1% is good news but it’s a joke of course. However, the stock market is afraid the Feds will go along with the joke and raise the interest rates. How long can the Feds go along with this charade of zero interest?
Putting this all together, since the start of the Second Great Depression, the US economy has lost 1.4 million manufacturing workers, but has more than made up for this with the addition of 1.5 million waiters and bartenders.
Chart via zerohedge