ELDER PATRIOT – The U.S. Labor Department has confirmed what we already knew. Productivity has declined for three straight quarters to a dismal 1.2% clip for the second quarter despite an increase in hours worked of 1.8% over the same period.
This portends future layoffs as the recent jubilation over higher than expected job gains reported last week have proven to be based on optimism rather than market demand. Even the 255,000 jobs created last month would fall short 20% of the number of people earning some form of college degree this year. This ignores the fact that most of the new jobs are in the lower paying service sector and, those that aren’t are being gobbled up by eager foreign degree holders who are willing to work for lower wages.
Non-college workers are being totally ignored as the manufacturing sector is being eviscerated by bad trade deals, the world’s highest corporate tax burdens, onerous regulations, and skyrocketing insurance, energy and transportation costs.
This raises the question whether the jobs report will be revised downwards or if President Obama called in a chit from the crony capitalists who have been enriched by his policies. Has Obama asked them to create jobs for appearance sakes until the election is over.
The only explanation for the rising stock market in light of this horrendous productivity report is it’s the best of a host of lousy choices for international investors looking for a return.
What happened to the $3 trillion dollars in stimulus money that was supposed to jumpstart the economy? That’s the question we should ask the over 2,000 billionaire globalists who stand shoulder-to-shoulder in support of both President Obama and Hillary Clinton.