The job numbers came out today, 431,000 new jobs added in May. President Barack Obama says the addition of 431,000 new jobs in May shows "the economy is getting stronger by the day."
Excuse me while I clear my throat and shake my head for a second.
Of those 431,000 great new jobs, 411,000 of those are temporary, part time census workers that will all be let go by the end of the summer.
That's 95% of the jobs created in May. What happens in June? Better yet what happens in August and September when those people are let go
and head straight to the unemployment line.
While every economist and sane person on Wall Street will be calling this a disaster our broken record of a president says the same thing no
matter what the truth of the situation is. We've borrowed and spent 3 trillion dollars in 18 months and have managed to lose millions of
private sector jobs in that time span. The number of government employees has seen a meteoric rise though but how do you pay for those
if you have no privately generated income to tax?
The good news is that the unemployment rate fell from 9.9% to 9.7%. Once again this good news is not really good as the size of the labor force
fell by 322,000. That means 322,000 people called it quits and gave up looking for work. Your only counted in the unemployment rate if you are
actively out their looking for work and unable to find a job. If you give up and go live under a bridge or go work off the books for your Uncle
you no longer count towards this rate. Add to that the 411,000 temporary government workers and you have a 733,000 person swing affecting the
unemployment rate and yet it only managed a drop of 0.2%.
By late summer the economy will be once again losing jobs overall as the government begins to shed jobs for the first time in years and the private
sector plods along creating barely any new jobs.
But wait, it gets better. We have a whole bunch of tax increases set to kick in right after we pop the champagne this coming New Years eve. We
have a whole bunch of evil oil workers that will soon be unemployed because we have decided to halt all new oil exploration and some drilling
to avoid another BP disaster. Speaking of which, think of all the soon to be unemployed people in the oil soaked gulf who won't be fishing
or working near beaches with a shiny new coat of oil on them.
I'm not blaming Obama for all the problems contributing to our terrible unemployment state but could he for once just try to utter a truthful
and intelligent statement when it comes to the economy. To be clear, he does bear a good portion of the blame for much of the uncertainty and the
hostile environment businesses are dealing with that is preventing them from investing in growing their business and needing to hire. The
threat of health care regulation, increased taxation, environmental regulation and flat out takeover has caused businesses and investors to
hold on to their money and protect it until the situation improves. That is, if it ever does.
Late day update: I guess someone agrees with me as the market is down 305 points and is again under 10,000.
June 02, 2010 - Holding our breath.
May 26, 2010 - Terminally Ill.
May 24, 2010 - The 10 Planks Today.
May 19, 2010 - The 10 Planks.
May 11, 2010 - Buying Time.
May 3 - Mission Organization.
April 27 - My name is America, and I'm and addict.
April 26 - This time you've been warned.
April 23 - Mutually Assured Economic Destruction
April 22 - The Truth, Does it matter?
April 21 - Name that Mob?
April 20 - Why So Quiet?.
April 19 - The Deadbeat Bubble.
April 16 - Oh no you didn't.
April 15 - The Party of Silence.
April 14 - You've got to be kidding me.
April 13 - Where do we go from here
April 12 - Youth of the Nation
April 9 - Turning the Tables
April 8 - New Age of Discrimination
April 7 - Thank You Kind Stranger
April 6 - The Cost of Compassion
April 5 - Happy Days are Here Again
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