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PARIS, THE NEW NORMAL? — Diana Johnstone files an in-depth report from Paris on the political reaction to the Charlie Hebdo shootings; The Treachery of the Black Political Class: Margaret Kimberley charts the rise and fall of the Congressional Black Caucus; The New Great Game: Pepe Escobar assays the game-changing new alliance between Russia and Turkey; Will the Frackers Go Bust? Joshua Frank reports on how the collapse of global oil prices might spell the end of the fracking frenzy in the Bakken Shale; The Future of the Giraffe: Ecologist Monica Bond reports from Tanzania on the frantic efforts to save one of the world’s most iconic species. Plus: Jeffrey St. Clair on Satire in the Service of Power; Chris Floyd on the Age of Terrorism and Absurdity; Mike Whitney on the Drop Dead Fed; John Wight on the rampant racism of Clint Eastwood’s “American Sniper;” John Walsh on Hillary Clinton and Lee Ballinger on the Gift of Anger.
A Government That Lies About Everything

Another Phony Jobs Report

by PAUL CRAIG ROBERTS

The payroll jobs report for May released continues the fantasy.

Goods producing jobs declined, with manufacturing losing another 4,000 jobs, but the New Economy produced 179,000 service jobs.

Are these jobs the high-powered, high-wage  “innovation jobs” that economists promised would be our reward from Globalism.  I’m afraid not.

According to the Bureau of Labor Statistics, the jobs created are the usual lowly paid non-exportable domestic service jobs–the jobs of a third world country.

Retail trade accounts for 27,700 of the jobs.

Wholesale trade accounts for 7,900 jobs.

Ambulatory health care services accounts for 15,300 of the jobs.

Waitresses and bartenders accounts for 38,100 of the jobs.

Local government accounts for 13,000 of the jobs.

Amusements, gambling, and recreation accounts for 12,500 of the jobs.

Temporary help services provided 25,600 jobs.

Business support services provided 4,300 jobs.

Services to buildings and dwellings provided 6,400 jobs.

Accounting and bookkeeping services provided 3,100 jobs.

Architectural and engineering services provided 4,900 jobs.

Computer systems design and related provided 6,000 jobs (most likely filled by H-1B work visas).
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Management and technical consulting services provided 3,200 jobs.

For a decade this has been the jobs profile of “the world’s most powerful economy.”  It is the profile of third world India 40 years ago.  The jobs that made the US the dominant economy have been moved off shore by corporations threatened by Wall Street with takeovers if they did not increase their profits.

The easiest way for corporations to increase profits is to take advantage of cheap labor in countries with massive quantities of unemployed labor.

So, if we believe the BLS report, and the reported new jobs are not simply a product of faulty season adjustments and a faulty birth-death model, why is the financial press happy that the US economy can only create third world jobs?  Why was the stock market up on the news that the US economy has created 179,000 third world jobs?

Would rational markets be up on such discouraging news?

But are the jobs really there?

With retail sales going nowhere, why 35,600 new jobs in wholesale and retail trade?

With real median incomes declining, why 38,100 more waitresses and bartenders? For every month as long as I can remember the BLS reports numerous new jobs in waitresses and bartenders, despite the long-term decline in real median income.

In the May jobs report, where are the jobs for the vast number of new college graduates?

The US now has more hotel maids, bartenders, and waitresses than it has manufacturing workers. The US has twice as many people employed in government than in manufacturing.

The services of maids, bartenders, waitresses, and government cannot be exported.

Therefore, the US trade deficit remains large and without exports to reduce it, a crisis in itself.

What the BLS jobs reports have been telling us for many years is that the US economy is in crisis, in a death-spiral.  Yet, not a handful of economists’ voices have been raised.

Today president obama’s economist said that the notch upward in the unemployment rate was because the economic outlook was so good that more people were encouraged to enter the labor market than there were new jobs available.

The conclusion is inescapable:  The same government that lies about weapons of mass destruction, Saddam Hussein’s al-Qaeda connections, Iranian nukes, and so on, also lies about jobs, the unemployment rate, the inflation rate, rigs every financial and commodity market, pretends that terrorism is such a threat that the US Constitution must be set aside and that Americans are safer without the protection of habeas corpus and due process.

It is amazing how rare terrorism is, especially with Washington in the second decade of trying to stir up terrorism by invading countries on totally false pretenses, murdering citizens of countries, such as Pakistan and Yemen with drones, and supporting Israel’s never-ending murder and dispossession of the Palestinians.

After such massive provocations from Washington, one would think that the world would be ablaze with terrorism. But it isn’t.

As there is so little terrorism, Washington and its presstitute media call those who resist

Washington’s invasion of their countries “terrorists.”  Everyone who resists Washington’s military aggression is a terrorist.  Just ask the New York Times, Fox News, or any neoconservative. Or, for that matter, the Bilderbergs, the Council on Foreign Relations, the Trilateral Commission, and Homeland Security, the Gestapo organization that now defines all American dissenters to be “domestic extremists.”

Washington’s claim that Americans have “freedom and democracy” is the sickest joke in human history.

In 21st century America, defendants have no more rights than the accused in Nazi Germany or Stalinist Russia. The FBI now shoots “suspects” brought in for questioning in the back of the head even before the suspect is arrested. 

Long before Bradley Manning’s trial the presstitutes have convicted the accused based on lies leaked by the prosecutors. Consider Bradley Manning.  After three years of detention, including one year of torture, he is brought to a rigged trial as a national security danger.  All that Bradley Manning did was to comply with the Military Code and report war crimes.  As his corrupt superiors did not want to know, he complied  with his duty, apparently, by going public.

Paul Craig Roberts is a former Assistant Secretary of the US Treasury and Associate Editor of the Wall Street Journal. His latest book is  The Failure of Laissez-Faire Capitalism. Roberts’ How the Economy Was Lost is now available from CounterPunch in electronic format.