• Monthly
  • $25
  • $50
  • $100
  • $other
  • use PayPal

SPRING FUNDRAISER

Is it time for our Spring fundraiser already? If you enjoy what we offer, and have the means, please consider donating. The sooner we reach our modest goal, the faster we can get back to business as (un)usual. Please, stay safe and we’ll see you down the road.
FacebookTwitterRedditEmail

The Collapsing US Economy

Do you remember when real reporters existed?  Those were the days before the Clinton regime concentrated the media into a few hands and turned the media into a Ministry of Propaganda, a tool of Big Brother.  The false reality in which Americans live extends into economic life. Last Friday’s employment report was a continuation of a long string of bad news spun into good news.  The media repeats two numbers as if they mean something—the monthly payroll jobs gains and the unemployment rate—and ignores the numbers that show the continuing multi-year decline in employment opportunities while the economy is allegedly recovering.

The so-called recovery is based on the U.3 measure of the unemployment rate. This measure does not include any unemployed person who has become discouraged from the inability to find a job and has not looked for a job in four weeks.  The U.3 measure of unemployment only includes the still hopeful who think they will find a job.

The government has a second official measure of unemployment, U.6.  This measure, seldom reported, includes among the unemployed those who have been discouraged for less than one year.  This official measure is double the 5.3% U.3 measure.  What does it mean that the unemployment rate is over 10% after six years of alleged economic recovery?

In 1994 the Clinton regime stopped counting long-term discouraged workers as unemployed.  Clinton wanted his economy to look better than Reagan’s, so he ceased counting the long-term discouraged workers that were part of Reagan’s unemployment rate. John Williams (shadowstats.com) continues to measure the long-term discouraged with the official methodology of that time, and when these unemployed are included, the US rate of unemployment as of July 2015 is 23%, several times higher than during the recession with which Fed chairman Paul Volcker greeted the Reagan presidency.

An unemployment rate of 23% gives economic recovery a new meaning. It has been eighty-five years since the Great Depression, and the US economy is in economic recovery with an unemployment rate close to that of the Great Depression.

The labor force participation rate has declined over the “recovery” that allegedly began in June 2009 and continues today. This is highly unusual. Normally, as an economy recovers jobs rebound, and people flock into the labor force.  Based on what he was told by his economic advisors, President Obama attributed the decline in the participation rate to baby boomers taking retirement.  In actual fact, over the so-called recovery, job growth has been primarily among those 55 years of age and older.  For example, all of the July payroll jobs gains were accounted for by those 55 and older.  Those Americans of prime working age (25 to 54 years old) lost 131,000 jobs in July.

Over the previous year (July 2014 — July 2015), those in the age group 55 and older gained 1,554,000 jobs. Youth, 16-18 and 20-24, lost 887,000 and 489,000 jobs.

Today there are 4,000,000 fewer jobs for Americans aged 25 to 54 than in December 2007. From 2009 to 2013, Americans in this age group were down 6,000,000 jobs.  Those years of alleged economic recovery apparently bypassed Americans of prime working age.

As of July 2015, the US has 27,265,000 people with part-time jobs, of whom 6,300,000 or 23% are working part-time because they cannot find full time jobs.  There are 7,124,000 Americans who hold multiple part-time jobs in order to make ends meet, an increase of 337,000 from a year ago.

The young cannot form households on the basis of part-time jobs, but retirees take these jobs in order to provide the missing income on their savings from the Federal Reserve’s zero interest rate policy, which is keyed toward supporting the balance sheets of a handful of giant banks, whose executives control the US Treasury and Federal Reserve. With so many manufacturing and tradable professional skill jobs, such as software engineering, offshored to China and India, professional careers are disappearing in the US.

The most lucrative jobs in America involve running Wall Street scams, lobbying for private interest groups, for which former members of the House, Senate, and executive branch are preferred, and producing schemes for the enrichment of think-tank donors, which, masquerading as public policy, can become law.

The claimed payroll jobs for July are in the usual categories familiar to us month after month year after year.  They are domestic service jobs—waitresses and bartenders, retail clerks, transportation, warehousing, finance and insurance, health care and social assistance.  Nothing to export in order to pay for massive imports. With scant growth in real median family incomes, as savings are drawn down and credit used up, even the sales part of the economy will falter.

Clearly, this is not an economy that has a future.

But you would never know that from listening to the financial media or reading the New York Times business section or the Wall Street Journal.

When I was a Wall Street Journal editor, the deplorable condition of the US economy would have been front page news.

More articles by:

Paul Craig Roberts is a former Assistant Secretary of the US Treasury and Associate Editor of the Wall Street Journal. Roberts’ How the Economy Was Lost is now available from CounterPunch in electronic format. His latest book is The Neoconservative Threat to World Order.

Weekend Edition
May 29, 2020
Friday - Sunday
Tim Wise
Protest, Uprisings, and Race War
Nick Pemberton
White Supremacy is the Virus; Police are the Vector
T.J. Coles
What’s NATO Up to These Days? Provoking Russia, Draining Healthcare Budgets and Protecting Its Own from COVID
Benjamin Dangl
Bibles at the Barricades: How the Right Seized Power in Bolivia
Kevin Alexander Gray - Jeffrey St. Clair - JoAnn Wypijewski
There is No Peace: an Incitement to Justice
Jeffrey St. Clair
A Few Good Sadists
Jeff Mackler
The Plague of Racist Cop Murders: Ahmaud Arbery, George Floyd and the COVID-19 Pandemic
Joshua Frank
In Search of a Lost Socialism
Charles Pierson
Who are the “Wrong Hands” in Yemen?
Andrew Levine
Trump Is Unbeatable in the Race to the Bottom and So Is the GOP
David Schultz
Trump isn’t the Pope and This Ain’t the Middle Ages
Ramzy Baroud
Political Ambiguity or a Doomsday Weapon: Why Abbas Abandoned Oslo
Pam Martens - Russ Martens
A Growing Wave of Bankruptcies Threatens U.S. Recovery
Joseph Natoli
Conditions Close at Hand
N.D. Jayaprakash
No Lessons Learned From Bhopal: the Toxic Chemical Leak at LG Polymers India 
Ron Jacobs
The Odyssey of Elias Demetracopoulos
J.P. Linstroth
Arundhati Roy on Indian Migrant-Worker Oppression and India’s Fateful COVID Crisis
Melvin Goodman
Goodness Gracious, David Ignatius!!
Roger Harris
Blaming the COVID-19 Pandemic on Too Many Humans:  a Critique of Overpopulation Ideology
Sonali Kolhatkar
For America’s Wealthiest, the Pandemic is a Time to Profit
Prabir Purkayastha
U.S. Declares a Vaccine War on the World
David Rosen
Coronavirus and the Telecom Crisis
Paul Buhle
Why Does W.E.B. Du Bois Matter Today?
Mike Bader
The Only Way to Save Grizzlies: Connect Their Habitats
Dave Lindorff
Pandemic Crisis and Recession Can Spark a Fight for Real Change in the US
Nyla Ali Khan
The Sociopolitical and Historical Context That Shaped Kashmiri Women Like My Grandmother in the 1940s
Louis Proyect
Does Neo-Feudalism Define Our Current Epoch?
Ralph Nader
S. David Freeman: Seven Decades of Participating in Power for All of Us
Norman Solomon
Amy Klobuchar, Minneapolis Police and Her VP Quest
Maria Paez Victor
Venezuela in the 2020 Pandemic
Ron Mitchell
Defending Our Public Lands: One Man’s Legacy
Nomi Prins 
The Great Depression, Coronavirus Style: Crashes, Then and Now
Richard C. Gross
About That City on A Hill
Kathleen Wallace
An Oath for Hypocrites
Eve Ottenberg
Common Preservation or Extinction?
Graham Peebles
Air Pollution Mental Illness and Covid-19
ADRIAN KUZMINSKI
Unearned Income for All
Evan Jones
The Machine Stops
Nicky Reid
Proudhon v. Facebook: A Mutualist Solution to Cyber Tyranny
Kollibri terre Sonnenblume
What is a “Native” Plant in a Changing World?
Shailly Gupta Barnes
Why are Our Leaders Still Putting Their Faith in the Rich?
John Kendall Hawkins
In Search of the Chosŏn People of Lost Korea
Nick Licata
How Hydroxychloroquine Could Help Trump…Politically
Jill Richardson
Tens of Millions of Are Out of Work, Why on Earth is Trump Trying to Cut Food Aid?
Susan Block
Incel Terrorism
FacebookTwitterRedditEmail