This is Your Economy:
The ADP payroll report is out today. They’re the people who print paychecks, so they have a very good idea how many private sector jobs there are. And in May, they say there were 55,000 more private sector jobs. All the gains came from the “service” sector: jobs that often begin with “how can I help you” and end with “is there anything else” (or alternatively, “would you like fries with that”). No new manufacturing jobs; no new construction jobs; no jobs doing anything that won’t be gone or irrelevant in 6 months. Tomorrow the Bureau of Labor Statistics will come out with their own numbers, which include government jobs. And since there are roughly 400,000 extra Census workers on the job right now, they are expected to announce something like 540,000 new jobs. Because those Census workers will be unemployed by Christmas, we should really call this 140,000 new and possibly permanent jobs. Once more, we haven’t added enough jobs to account for people entering the workforce (sorry, class of 2010!) let alone put the unemployed to work.
Speaking of the unemployed, the percentage of them who have been out of work more than half a year is at record levels. Sadly, unemployment is higher among parents, who have families to feed. Let’s not forget that the biggest reason for unemployment benefits is that those kids didn’t do anything wrong and still deserve roof-over-head and dinner-on-the-table. And in an unconscionable move, at least one employer is advertising that they won’t consider your application if you are unemployed! On what planet is it desirable to hire people who you know will jump ship for a better gig, when there are thousands of unemployed people desperate to work for you? Even without the public relations nightmare unfolding, how can this possibly be good business?
No wonder personal bankruptcy filings are up.
This is your economy. And now, in the face of a consumer revolt that threatens to turn into a voter revolt, Congress is actually considering doing something about the people who got us here. It sure sounds like too little too late, if it happens at all.
Warren Buffett Redux (a follow up):
Yesterday was the big day for the Oracle of Omaha. He had to sit down in front of the Financial Crisis Inquiry Commission and explain how the 3rd richest man in the world let a ratings agency he had partial ownership of overlook the real estate bubble. Well, he didn’t want to “look foolish” by sounding the alarm. After all, everybody was trying to make a buck in real estate. Nobody could have seen it coming, especially the company that was paid to see it coming. Which is it: he didn’t want to be the first to say anything, or nobody could have foreseen it?
Kind of unimpressive testimony. It’s almost like he was trying to invoke his right to remain silent.
In Closing: Androids don’t play Tetris; Wal-Mart’s lawyers warned the company not to be misogynist prigs in 1995; obligatory Gulf of Mexico oil spill items; Congressional slap-fight may make it hard to buy a home anywhere floods are a remote risk; Driving While Black (I feel certain that “brown” is close enough in many areas); cooking is hard; health insurance limbo; vaccine refusal puts everyone at risk; National Association of Evangelicals might actually be ready to face reality, that birth control prevents abortions; farewell Mercury; the 50 year “anomaly”; Governor Gibbons made the Real ID Zombie walk again, but the ACLU’s got a boomstick; and Star Trek insignia. Yes, I do try to always make the last item fun.