Guest Post: Dude, Where's My Job

Tyler Durden's picture

Submitted by Jim Quinn of The Burning Platform

Dude, Where's My Job

The storyline being sold to the American public by the White House
and the corporate mainstream media is that the economy is growing, jobs
are being created, corporations are generating record profits, consumers
are spending and all will be well in 2011. The 2% payroll tax cut,
stolen from future generations to be spent in 2011, will jumpstart a
sound economic recovery. Joseph Goebbels would be proud.

      PROPAGANDA MINISTERS

  

It was another wise old man named Ben Franklin who captured the essence of what those in control are peddling:

“Half a truth is often a great lie.”

The economy is growing due to unprecedented
deficit spending by the government, fraudulent accounting by the Wall
Street banks, the Federal Reserve buying $1.5 trillion of toxic mortgage
“assets” from their Wall Street owners, various home buyer and auto tax
credits and gimmick programs, and Fannie, Freddie, and the
FHA accumulating taxpayer loses so morons can continue to purchase
houses. Jobs are being created. According to the BLS, we’ve added
951,000 jobs since December 2009, an average of 79,000 per month. Of
course, the population of the US is growing at 175,000 per month. It
seems that there are millions of jobs being created, just not here as
shown on these graphs from the NYT.

The storyline of corporate profits is true.
As a percentage of national income, corporate profits are 9.5%. They
have only topped 9% twice in history – in 2006 and 1929. When you see
the paid Wall Street shills parade on CNBC every day proclaiming the
huge corporate profit growth ahead, keep these data points in mind. Do
profits generally rise dramatically from all time peaks? 

You might ask yourself, if corporations are
doing so well how come real unemployment exceeds 20%? The answer lies
in who is generating the profits and how they are doing it. It seems
that the fantastic profits are not being generated by domestic
non-financial companies employing middle class Americans producing
goods. Pre-tax domestic nonfinancial corporate profits are not close
to record levels as a share of national income. They exceeded 15% of
national income once in the late 1940s, and repeatedly topped 12% in the
1950s and 1960s; in the third quarter of this year, they were 7.03% of
national income. I wonder who is making the profits.

According to BEA data, financial industry profits and “rest of world”
profits — that is, the money U.S.-based corporations make overseas —
are relatively much higher now than they were in the 1950s or 1960s. And
the taxes paid by corporations are much lower now than they were then,
as a share of national income. The reason that corporate profits are
near their all-time highs is that Wall Street corporations and
mega multinational corporations are making gobs of loot and paying less
of it out in taxes. Isn’t that delightful for the CEOs and top
executives of these companies?

The profits are being generated on Wall Street through collusion with
the Federal Reserve, as the insolvent Wall Street banks accept free
money from the Federal Reserve to generate speculative profits at the
expense of senior citizens earning .20% on their CDs. The
mega-multinationals are ”earning” their profits by continuing to ship
American jobs overseas at a record pace. The Economic Policy Institute, a
Washington think tank, says American companies have created 1.4 million
jobs overseas this year. The additional 1.4 million jobs would have
lowered the U.S. unemployment rate to 8.9 percent, says Robert Scott,
the institute’s senior international economist. “There’s a huge
difference between what is good for American companies versus what is
good for the American economy,” says Scott. The hollowing out of the
American economy has been going on for decades and despite the usual
rhetoric out of Washington DC, it continues unabated today.

But consumer spending has surged, so the recovery must be solid and
self-sustaining say the brainless twits on CNBC. Consumer spending is
rising because the top 1% wealthiest Americans are doing splendidly as
they are now reaping 20% of the income in the country, levels last seen
in 1929. The Haves have more, the Have Nots have less. The top 10%
wealthiest Americans own 98.5% of all the stocks in the country. They
feel richer because Ben Bernanke has propped up the stock market with
trillions of borrowed money from future generations. The other 90% of
Americans have stagnant or non-existent wages, rising costs for fuel and
food, falling home prices, rising debt levels and little hope for the
future. They have been thrown a bone of extended unemployment bennies, a
temporary payroll tax cut, and extended tax cuts. Any spending they are
doing is on credit cards as the austerity deleveraging storyline is
another big lie by the MSM.

Greater Depression 

The figure of 15 million unemployed reported by the government and
regurgitated by the corporate media is one of the biggest lies in the
history of lies. The real figure is 30 million and I will prove it using
the government’s own data. I created the chart below from BLS data (ftp://ftp.bls.gov/pub/suppl/empsit.ceseeb1.txt) to
prove that we are in the midst of a Greater Depression and no amount of
spin by politicians and the media can wish it away. When we look at
jobs in America across the decades, a picture of a country in decline,
captured by financial elites, reveals itself. In 1970, America still
produced goods, ran trade surpluses, and paid wages that allowed
families to thrive with only one parent working. Only 34.6% of the
population was employed, with a third of these workers producing goods. 

               
(Millions Employed) 1970 1980 1990 2000 2007 Dec-09 Nov-10
Mining & Logging 677 1,077 765 599 724 676 763
Construction 3,654 4,454 5,263 6,787 7,630 5,696 5,615
Manufacturing 17,848 18,733 17,695 17,263 13,879 11,534 11,648
Trade, Transport. & Utilities 14,144 18,413 22,666 26,225 26,630 24,653 24,806
Information 2,041 2,361 2,688 3,630 3,032 2,748 2,717
Financial Activities 3,532 5,025 6,614 7,687 8,301 7,657 7,573
Professional & Business Serv. 5,267 7,544 10,848 16,666 17,942 16,488 16,861
Education & Health Services 4,577 7,072 10,984 15,109 18,322 19,350 19,719
Leisure & Hospitality 4,789 6,721 9,288 11,862 13,427 12,991 13,174
Other Serices 1,789 2,755 4,261 5,168 5,494 5,314 5,402
Government 12,687 16,375 18,415 20,790 22,218 22,481 22,261
TOTAL EMPLOYED 71,005 90,530 109,487 131,786 137,599 129,588 130,539
US Population 205,052 227,225 249,439 281,422 299,398 308,200 310,300
% of US Population Employed 34.6% 39.8% 43.9% 46.8% 46.0% 42.0% 42.1%
Source: BLS Establishment Data               

 

Whether it was due to the woman’s movement of the 1970s or due to
financial necessity, the percentage of the population employed grew
relentlessly until it reached 46.8% in the year 2000. The level of 46.8%
meant that when the opportunity to be employed was available, this
percentage of Americans wanted a job. Since 2000 the population of the
U.S. has grown by 28.9 million people. The labor force between the ages
of 18 and 64 has grown by 26.1 million people since 2000. The
government insists that millions of Americans have chosen to “leave the
workforce” and should not be considered unemployed. This is laughable.
Why would people choose to leave the workforce when wages are stagnant,
retirement looms, prices relentlessly rise, and they are drowning in
debt? The truth is that at least 46.8% of the population wants to be
employed. That means that 145.2 million Americans would be working if
they had the chance. Only 130.5 million are currently employed. This
means that there are really 30 million Americans unemployed versus the
15 million reported by the government and MSM.

Not only is the country short 30 million jobs, but the type of jobs
reveal a country of paper pushers, consultants, temp workers, government
drones, waitresses, and clerks. The chart below shows the distribution
of jobs through the decades. 

               
(% of Employed) 1970 1980 1990 2000 2007 Dec-09 Nov-10
Mining & Logging 1.0% 1.2% 0.7% 0.5% 0.5% 0.5% 0.6%
Construction 5.1% 4.9% 4.8% 5.2% 5.5% 4.4% 4.3%
Manufacturing 25.1% 20.7% 16.2% 13.1% 10.1% 8.9% 8.9%
Trade, Transport. & Utilities 19.9% 20.3% 20.7% 19.9% 19.4% 19.0% 19.0%
Information 2.9% 2.6% 2.5% 2.8% 2.2% 2.1% 2.1%
Financial Activities 5.0% 5.6% 6.0% 5.8% 6.0% 5.9% 5.8%
Professional & Business Serv. 7.4% 8.3% 9.9% 12.6% 13.0% 12.7% 12.9%
Education & Health Services 6.4% 7.8% 10.0% 11.5% 13.3% 14.9% 15.1%
Leisure & Hospitality 6.7% 7.4% 8.5% 9.0% 9.8% 10.0% 10.1%
Other Serices 2.5% 3.0% 3.9% 3.9% 4.0% 4.1% 4.1%
Government 17.9% 18.1% 16.8% 15.8% 16.1% 17.3% 17.1%
TOTAL EMPLOYED 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 Source: BLS              

 

In 1970, jobs in the goods producing industries made up 31.2% of all
jobs. Today, they account for 13.8% of all jobs. The apologists will
proclaim that corporate America just got phenomenally more efficient and
productive. That is another falsehood. In 1970, we were a net exporter,
consumer expenditures accounted for 62.4% of GDP, and private
investment accounted for 14.7% of GDP. Today, we consistently run $500
billion to $700 billion annual trade deficits, consumer expenditures
account for 71% of GDP, and private fixed investment is a pitiful 11.5%
of GDP. We’ve degenerated from a productive goods producing society to a
consumption based, debt fueled society. This is a classic late stage
trait of declining empires. Rome and Britain before us experienced
similar declines.  

The most damning facts that can be garnered from the BLS data relate
to how we’ve become a nation of bankers, real estate agents,
accountants, lawyers, tax specialists, and fast food fry cooks.
Manufacturing jobs have dropped from 25% of all jobs in 1970 to less
than 9% today. Jobs in the spreadsheet generating, credit default swap
creating, subprime mortgage pushing, frivolous lawsuit filing, tax
evasion sector of the economy went from 12% in 1970 to 19% today.

The misinformation and lies will continue. The MSM keeps repeating
that jobs are coming back. You don’t hear which jobs. Hysterically, the
four fastest growing job categories according to the BLS are:

  1. Administrative and support services
  2. Food services and drinking places
  3. Couriers and messengers
  4. Performing arts and spectator sports

The well paying goods producing jobs are never coming back. American
manufacturing jobs have been shifted overseas for more than two decades
by corporate America. Now those jobs have become more sophisticated,
like semiconductors, software and even medical and finance.  The
American middle class is relegated to being McDonalds fry cooks,
Wal-Mart greeters, and temp workers. What has happened to the American
middle class was not an accident. The wealth of the country has been
pillaged by an elite group at the very top of the economic food chain,
who were able to reap the rewards of globalization (outsourcing American
jobs), manipulate the debt based financial system through synthetic
fraud products, and avoid taxes by hiring thousands of lawyers,
accountants and tax consultants. When you hear that the rich need lower
taxes, corporate taxes are too high and increased productivity is great
for America, remember what they have done to the country since 1970. If
corporate America and its leaders continue to reap obscene profits while
the middle class falls further into the abyss, societal unrest will
beckon.