The Labor Department says the economy added 162,000 jobs in the month of March. Thank you stimulus, thank you health care and thank you Obama for this
glorious news. (Sigh)
As the saying goes, and now the bad news. ADP, the nations largest payroll company reported that the economy lost 23,000 jobs in the month of March.
Now ADP does not handle any government payrolls so they only deal with private sector jobs. Remember those, private sector job things. The kind of jobs
were people make money and pay taxes on that money and none of the money comes from any kind of government.
So how did the economy add all those jobs if ADP says payrolls shrunk by 23,000? Well the federal government added 48,000 census workers in March.
How awesome is that. Almost 50,000 new part time jobs performing the all important act of making sure people fill out a form correctly. Even better
is that all those new jobs come to a screeching halt later this summer as all the census workers are let go.
Still the math doesn't add up. Take away the census workers from the 162,000 and you still have more than 100,000 jobs to account for. Well if you recall we passed little 800 billion stimulus plan back in February of 2009 and remarkably have spent only a fraction of that money. The bulk of the money will
be spent this year just in time for the 2010 elections in November. If your going to shove a whole bunch of unpopular bills down people's throats you're
going to need a boatload of money to spend in order to have a chance at getting reelected. If you look at the numbers the stimulus money is being spent
at a 2 to 1 ratio in Democrat vs Republican districts. If you have a majority of your potential voters mad as hell at you for passing health care
I bet spending a ton of stimulus money in those areas will help quite a bit.
This little graph says it all.
Think of the red line representing the cost of government jobs and the blue line being taxes payed on private sector jobs.
Those two lines were linked together for 46 years from 1962 to 2008 and then split like Jon and Kate and are still running away from
each other. Common sense tells you that adding government workers while the private sector shrinks just won't work very long and could
be disastrous if the numbers get out of hand.
This administration is willing to do anything in order to save face and not admit that their policies are proven failures. The unemployment
rate is at 9.7% and most economists predict it will grow beyond 10% again this year despite all the government spending. They are using the
"we inherited these problems" diversion to do all these crazy things as fast as possible. When the bill comes due and the fruit of the
seeds they are now planting is ripe these people will no longer be in charge and the blame game will begin once again. I can only hope that
this time people will know who caused this mess and be willing to do what really needs to be done to clean it up.
April 2 - Of Course We Can Do a Better Job
April 1 - The New Normal
March 31 - Take a Deep Breath
March 30 - Metaphors and Blinking Lights