SEARCH BLOG: ECONOMY
The media has a way of spinning news that makes one wonder whether they are reporting news or views... I think the latter.
The New York Times had this:
Jobless Report Is Worse Than Expected; Rate Rises to 9.8%
The American economy lost 263,000 jobs in September — far more than expected — and the unemployment rate rose to 9.8 percent, the government reported on Friday, dimming prospects of any meaningful job growth by the end of the year.
The Labor Department’s monthly snapshot of unemployment suggested that the economy was plodding through a faltering recovery that could pose big challenges to lawmakers worried about a growing public outcry over both big government deficits and high unemployment.
First of all, who set an expectation of recovering employment? I think the answer is very few optimists. Then who set the expectation of a declining rate of increasing unemployment. I think the answer is the Obama administration as part of their "Hope" strategy. Even if the absolute number of additional job losses gets small... it has to be compared with the overall jobs base which has also gotten smaller... and the number of under-employed people which has gotten larger.
The reality is that U.S. employment is continuing in a downward spiral due to the political policies of the past few decades that center around a tax code that punishes U.S. employment. Given the level of spending coming out of the Obama administration, it is unlikely that the tax code will do anything other than increase the level of punishing U.S. employment.
In fact, it looks like an even bigger effort is underway by the Obama administration to increase job-killer taxes beyond the health care nonsense... exacerbated by a potential trade war.
Time to get to root causes [click image below].