Published Fri, Dec 6 2019, by Jeff Cox
Here is a new article from CNBC and it reports on the latest job numbers as released by our government. What I have seen since about the year 2000 is a complete disconnect between the economic statistics and what regular people know and experience. Here is what I mean.
- Since I was a child, I have noticed that the news reports on the economy mostly apply to what is occurring in the Northeast of the USA. It takes about 1 year for the same condition to reach Texas and about 2 years for it to reach California.
- While the news says we have great job numbers, what I am hearing on KHOU Channel 11 and NPR is that not only is 2020 going to be a bad year in Houston for the energy sector (Houston is all energy sector practically); but inflation is actually dropping. In university economics, had I said that high employment brings low inflation, the professor would have done a dance on my head.
- The news keeps ranting about how payrolls are increasing, yet, the USA has got a serious homelessness problem. Who are getting these jobs? Are these folks mostly legal immigrants, H1B, and illegal immigrants, who either way work for half the pay rate of a natural born, red blooded American? Actually, that would be the only explanation for high payrolls and low inflation – hire foreigners and make Americans sleep under bridges.
- If things are so good, why are the oil and automotive industries firing so many people? In the article by CNBC, I did not read anything about those industries, and they are huge. The industries that are up, are health care (more sick people), hotel and entertainment (good for the jet set), and government (inefficiency). What about trucking, construction, manufacturing, and other blue collar jobs? The only sectors that seem to be up are those that consume a lot of dollars and produce little tangible goods where normal working people are employed (employment is up in the white collar service industry).
I choose to step back for a better look in the era of so much information and disinformation. To drive my point a little further, I have included a chart above of US household debt. If things are so good, why cannot people pay their bills? So far, all I see is lies, lies, lies. Click on the link below to read the article by CNBC.