How The Fed Spent $2 Trillion And In Exchange We Got 650,000 Temp, Leisure And Retail "Jobs"

Tyler Durden's picture

When we looked at the changing composition in the US work force one month ago, we discovered, to our dismay, that since the start of the Depression, the US labor pool has transformed substantially from a full-time time to an increasingly more part-time dominated one. Specifically we found that "America has lost 10.5 million full time jobs, offset by a 2.8 million increase in part time jobs" and that "the US not only lost 478k seasonally adjusted full time workers in November but has lost full time jobs for 6 months in a row, for a total of 1.6 million job losses!" In an attempt to further refine this number, we present some TrimTabs data which proves beyond a shadow of a doubt, that the Fed's QE (1, Lite, and 2) efforts, when expressed in labor force "pick up" has been an abysmal failure. To wit: "In 2010, the BLS reports that the economy added 1.12 million jobs.  Almost 60% of these jobs are in one of three relatively low-paying areas—temporary employment (308,000), leisure & hospitality (240,000), and retail trade (116,000)." In other words, of the 1.1 million private jobs gained in the last year, 650,000 or 60% are jobs that have absolutely no real wealth creation capacity, nor do they provide any real benefits. In fact, the retail jobs are becoming increasingly distressed, as more Americans shop online, leading to a job pickup... in Chinese warehousing and QC plants, and the irretrievable loss of even the lowest paying US jobs. Perhaps this is another question to add to the increasing list of lies to be justified by Ben Bernanke at earliest convenience. And the next time the teleprompter claims to have added millions in jobs, and that very inappropriately named Fed "Dove" Janet Yellen says the Fed's QE has been a tremendous job creation success, someone please ask them to break down the actual types of jobs "created."

From TrimTabs:

Almost 60% of Jobs Added in 2010 in Three Lower-Paying Areas: Temporary Help, Leisure & Hospitality, and Retail Trade.

Economists and market strategists spill lots of ink opining about the number of jobs the U.S. economy creates.  But we think the nature of the jobs is at least as important for the economy’s long-term health as the number of jobs.  On the former point, the latest Bureau of Labor Statistics (BLS) data is disappointing.

In 2010, the BLS reports that the economy added 1.12 million jobs.  Almost 60% of these jobs are in one of three relatively low-paying areas—temporary employment (308,000), leisure & hospitality (240,000), and retail trade (116,000).

These jobs are certainly better than no jobs.  But for the economy to grow sustainably—without the crutches of $1+ trillion per year in federal deficit spending, zero percent dictated interest rates, and tens of billions per month in central bank debt monetization—American companies need to start generating more higher-paying jobs at home.


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ATG's picture

Government jobs=oxymoron

Husk-Erzulie's picture

Government's the last great American industry.  Henry Ford is weeping in his grave.

LawsofPhysics's picture

The goberment is the only entity shedding jobs (as they should), next up, your local municipality.  Be sure to put that septic tank in because your sewer line might not be so dependable anymore.

velobabe's picture

the Evil Empire EE, needs to fall. i think i am ready, R U?

SwingForce's picture

Henry Ford and Thomas Edison shared next-door winter residences in Naples, FL.

What I would give to sit in the tree above their happy hours.......

(Rockefeller thought he was screwed when Edison invented the electric bulb, no need for kerosene lamp fuel, but when Ford invented the gasoline engine, Rockefeller was saved....)

Terminus C's picture

Ford didn't invent the gasoline engine.  He developed a production line that reduced the production time by about 90% per unit, thus massively saving on labor input.  This allowed the internal combustion driven vehicle to be affordable to the average worker.

Drag Racer's picture

Ford didn't invent the gasoline engine.

True, in fact his first vehicles ran on ethanol.

...engines were built back in 1870 that could run using either alcohol or gasoline...

Rockefeller needed someplace to sell oil after electric goes mainstream


look into the ties between the Ford Foundation and Rockefeller Foundation or more frightening is look into what they 'actually' do.

robobbob's picture

great, now I have to wash my hands. how much $ did PBS get for that white wash?

TruthInSunshine's picture

This ends badly.

The federal reserve is recklessly taxing future growth, and subsidizing Wall Street and the banking sector, and getting inflation and more malinvestment and distortions in asset classes, with taxdollars yet to be received.

The total cost of this folly will be astronomical.

Quixotic_Not's picture

The "cost" will be the collapse of the country itself, once the illusion that "All is well" has faded into the "Greatest Depression"...

In a democracy, you get the government you deserve...

nmewn's picture

and you deserve to get it good and hard.

rosiescenario's picture

...would hat be in dollars or oz of silver????

Not that I am an economist, but I have said from the start that the # of jobs created soes not is the amount of income created that counts....for me it is so obvious: if you lose 10 jobs paying $200k per year and add 100 paying $15k, did the economy improve???? Or, to put it another way, the quality of the jobs created is as important as the quantity.

cossack55's picture

Government workers=oxymoron

hambone's picture

Working Government = oxymoron

Shell Game's picture

Working Morons = Government

ReeferMac's picture

Nothing to see here, move along....

B9K9's picture

I agree. Tyler keeps posting up irrelevant information that attempts to provide some kind of linkage between policy decisions and economic fundamentals. Bzzt! Wrong.

ZH is an incredible platform, but for it to remain relevant, it really needs to climb the perspective ladder. From a higher vantage point, one can clearly see that the entire name of the game is preservation of the current regime - one that is an admixture of state protected oligarchies representing many different fields. And the underlining mechanism behind this entire process is the magic of credit generated ponzi "money".

So, when you see a headline like "the Fed spent $2T", one must not be confused about its publicized intent, but rather, focus on its true purpose. In this case, the true purpose is to maintain the fascist state in all its present glory.

Now, once one understands the overriding mechanisms & motivations, it's easier than sh!t to arbitrage the system just like the insiders. For, after all, nothing is really opaque anymore, now is it? Nope, in reality, this game is utterly transparent.

Right now, we have bubbles in 4 major areas, incidentally all effects of focused gov't action: education, commodities, equities & debt. Whereas the latter three are a result of printing (QE), student loan growth is the one area where credit is still increasing.

How long can this continue? Who knows. But in the interim, there's a 1:1 correlation that would be wise to game in terms of preparation.

DocLogo's picture

Please continue. which commodities do you feel are bubbles?

B9K9's picture

Everything denominated in the $USD is in a bubble.

Try this thought experiment: what if the debt ceiling was not increased, QE ended, and massive budget cuts were undertaken. What would happen? Answer: the dollar would soar and all commodities (including gold) priced in FRNs would crash.

But what is the likelihood of this occurring? Nil to never gonna happen. So what's the corollary? The $USD will continue to fall while all items priced in $USD will continue their upward trajectory.

The key is to not think about price, but policy. And no, don't worry about policy in terms of public impact, follow policy in terms of regime preservation. As long as the fascist empire still stands, the $USD will be used as a bludgeon to achieve its strategic imperative(s).

That's why, while Robot is correct, he appears to lack any intrinsic understanding of why this is so. So, to recap, stay long in the areas that are effected by dollar depreciation. Don't get out of your long positions until you can literally see the white of Ben's eyes get really big.

Then you will know the party is ending.

DocLogo's picture

Here's my question: Since everything is denominated in $'s and if prices are rising across the board, how is it a bubble if everything rises together but stay the same relative to each other? Isn't that just inflation? Is that the same as being in a bubble? In other words, if everything rises in price at the same rate, how is it a bubble?

StychoKiller's picture

I like to think of it as watching the waters recede before the tsunami is spotted on the horizon...

uno's picture

for a timeline, I do not see anything dramatic happening with O in the House.  The media LOVES him and will attack anyone challenging him.  This is probably why he is in right now, especially now having Daley as the Chief of Staff to pacify TPTB.

The current solution is to give out benefits (food stamps, SSI disability, medicaid etc) while the looting continues.  Soon anyone not working will get free lottery tickets while Wall Street continues with record bonuses. 

The USD will drop dramatically over the next few years, outsourcing of most jobs requiring a college degree will increase.

The signs I would look for is huge protests outside the White House, just cannot see that happening with O in.

robobbob's picture

I disagree on your take of TD. I think the tone of TD and ZH makes clear where they stand. Many of the ZH articles serve to pull back the curtain on said oligarchal regimes. The problem is that the curtain is so large it can only happen one piece at a time. And the horrible thing behind is so perverse and grotesque that an unprepared mind cannot grasp it in its entirety without going mad.

The present article exposes a piece of the fraud being used to once again hide the truth. Twenty years ago, the PTB and their media lapdogs could hide their crimes. Today, there is the internet. A mistake they are working feverishly to correct.

Jaw Knee Cash's picture

I was shooting in the desert last weekend and came across a dead stag beetle. I picked it up and it was very light. I realized that its insides were completely eaten out; just the outer shell remained. Just like the economy of this country. It's dead and has been hollowed out by parasites.

Racer's picture

A very good comparison to the parasitic banksters but it seems they have forgotten that if a parasite is host specific and consumes all its hosts then it will itself die a slow death

Jaw Knee Cash's picture

All of the hosts are not yet dead. We (productive citizens in the US) are all part of the human farm like in the Matrix. So long as we keep producing, the parasites will keep sucking.

Dr. Porkchop's picture

How to starve the tapeworm without starving ourselves first? How to kill the parasitic squid kraken?

Pegasus Muse's picture

Live debt free.  Buy gold & silver. 

Slow learner's picture

Their is some crap up here in MI called an Ash Bore Beatle...Fuck!...I just wanted to have sex with the girls I liked and swim around in lakes...I didn't sign up for this shit!!

umop episdn's picture

So this graph of the Civilian Employment-Population Ratio that shows a 25 year's actually worse than it looks because of all the McJobs. (insert cynical comment here)

EscapeKey's picture

I read somewhere that 40% of all American jobs are minimum wage jobs.

Rainman's picture

I can't imagine how all those student loans will be paid off on McNugget wages.

EscapeKey's picture

Yup. Imagine being 25-year old, recently graduated, in debt up to your eyeballs, and working at McDonalds.

And now realize that you won't be able to afford to have kids until you're well past your 40'es.

Meanwhile, those losers you went to school with, who can't add 2 and 2, already have 4 kids each, provided for by the government.

RafterManFMJ's picture

I seem to see hundreds of people having kids they cannot afford. Golly, are you a square. Waiting till you can 'afford' kids is so 1950. Drop a litter, and let someone else pay-it's the American Way!

spekulatn's picture

 Just follow 50 Cent on twitter. Your loan will be paid off in no time....... bitchez.  8)

Cursive's picture

LOL.  Pathetic, but no different than every "guest" on CNBC.

Hephasteus's picture

Oh shit. He's going to be martha stewarted.

SheepDog-One's picture

They didnt include 'street performers' in the data this time? I wonder why. Well just reading about Romania taxing witches, the witches are very angry and swear to cast many spells against the gubment. Interesting.

Wynn's picture

I wonder if those street performers (the Ted Williams's) are claiming those tips on their taxes. Perhaps the IRS should send tax collectors to every homeless shelter, and make sure all that income is being reported.


Common_Cents22's picture

Ted Williams will have no taxes or income since he is going to treatment after the cops were called to his hotel room.  LOL.    There was a reason the guy was homeless.



Most insta-celebrities wait until after their 15 minutes is up before heading to rehab. Ted Williams is going before his clock had the chance to even start ticking.

The former homeless man-turned-overnight success story, who has been open about his battle with drug and alcohol addiction, is taking the first step toward putting his past behind him by agreeing to enter into treatment.

Read more:
PalmiticGlycerin's picture

Poor Ted thought he was re-entering reality... Then he realized the shape of the economy and culture.. and determined he was better off homeless and drinking.  Time to get another beer.

Misean's picture

"...Fed "Dove" Janet Yellen says the Fed's QE has been a tremendous job creation success, someone please ask them to break down the actual types of jobs "created."

Well, there's butlering for Loyd "God's Work" Frankenstein, certainly The Morgue's Demon has additional gardening gigs at one of his mansions, Shill Gross has yatchs to maintain in Newport...and lest's not forget gold palted toilets and other luxury goods for the banksters and financiers and their "appropriately paid and bonuses or they'll go to other countries" minions.

Former Sheeple's picture

But on the bright side, consumer spending is up...because shite costs more! I'm new to ZH, and have learned alot from TD and all the contributors. Thanks to all! Curious though, if thre is anyway to determine how much consumer spending is fueled by shear terror? Purchases of guns, silver/gold, food stores, generators etc...?

Consumer spending = Inverse confidence?

bunkermeatheadprogeny's picture

Hormel foods had a great 2010 from all the ZHers stocking up on Dinty Moore Stew:

Former Sheeple's picture

Thx BunkerMH, Cabela's did as well, just makes me wonder...

Djirk's picture

full employment bitchez, meanwhile starvation and riots in Africa