Re: Jobs Report: U.S. Economy Added Just 142,000 Jobs In August, Unemployment Down To
Wait, I am very confused here.
Whenever I mention the ill-state of the US economy, I get angry replies telling me the economy under Obama is better than ever and, well, he's fixed all that and anyway we are saved through Obamacare.
I am not a whiz at economics, but it strikes me that in a consumer society you need consumers to keep the whole thing going. If people don't have jobs, how do they have money to consume those Chinese made products?
Can someone explain to me how Obama has single handedly overcome a fundamental economic rule?
This latest report IS disappointing, but looking at Single Month reports is Never a good idea.
The QEs have worked too. After the also-Necessary Financial Bailout preventing another 1929, the QEs prevented another 1930s.
The policies were Correct.
They have Worked.
The numbers are especially disappointing though, as everyone was hoping the economic growth would increase/catch hold without the Fed.
But if September's (and later) numbers come in similarly, they have Problem.
That problem is the stopping and even reversing, without having the economy having caught hold.
Not just the USA, the world as structural Growth problems which any given country cannot overcome alone.
BUT... the QEs didn't and can't solve the larger Structural Problems.
1. Globalization Devouring our Blue Collar Jobs and lowering wages of even those that stayed.
2. Our Horrible immigration policy/Free-for-all which has Caused even more erosion in wages/a Double Whammy to the Blue Collar/Middle Class.
3. The Demographic Structural problem of 10,000 Boomers retiring every day.
Collecting SS and slamming Medicare.
This promises to get WORSE/cumulative every year for at least the next 15, perhaps 20.
So You can pin a part of the ''participation rate'' on Obama, but probably not even Half.
Participation IS going to erode.
4. That's why, though I am for Balanced Budgets, it's Not crazy to Run a Deficit while the Demographic Pig works it way through the Python.
But No, that didn't mean from 2000-2015 except for the necessary post-Crash Bail-out.
5. Japan is Finished IMO.
It is a large
Black Swan that could trigger another Huge sell-off in World markets.
It's much Worse than Greece was fiscally.
6. China has been desperately pumping up theei economy with about 3-4x the rate of our QEs. Of course, they're doing it with our money.
But their economy is a phantom and their numbers (ie, 7% growth) are complete BS
7. Europe/EU/Draghi is increasing it's QE because they are dead in the water.
8. Canada is in relatively great shape due to Fiscal responsibility and of course, it's a Resource/Oil/etc economy in a Resource hungry world.
Good luck with Natl Health care there without... Oil, Metals, Ag, Timber.