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This Is What Employment In America Really Looks Like...

Tyler Durden's picture




 

Submitted by Michael Snyder of The Economic Collapse blog,

The level of employment in the United States has been declining since the year 2000.  There have been moments when things have appeared to have been getting better for a short period of time, and then the decline has resumed.  Thanks to the offshoring of millions of jobs, the replacement of millions of workers with technology and the overall weakness of the U.S. economy, the percentage of Americans that are actually working is significantly lower than it was when this century began.  And even though things have stabilized at a reduced level over the past few years, it is only a matter of time until the next major wave of the economic collapse strikes and the employment level goes even lower.  And the truth is that more good jobs are being lost every single day in America.  For example, as you will read about below, Warren Buffett is shutting down a Fruit of the Loom factory in Kentucky and moving it to Honduras just so that he can make a little bit more money.  We see this kind of betrayal over and over again, and it is absolutely ripping the middle class of America to shreds.

Below I have posted a chart that you never hear any of our politicians talk about.  It is a chart that shows how the percentage of working age Americans with a job has steadily declined since the turn of the century.  Just before the last recession, we were sitting at about 63 percent, but now we have been below 59 percent since the end of 2009...

Employment Population Ratio 2014

We should be thankful that things have stabilized at this lower level for the past few years.

At least things have not been getting worse.

But anyone that believes that "things have returned to normal" is just being delusional.

And nothing is being done about the long-term trends that are absolutely crippling our economy.  One of those trends is the offshoring of middle class jobs.  As I mentioned above, Fruit of the Loom (which is essentially owned by Warren Buffett) has made the decision to close their factory in Jamestown, Kentucky and lay off all the workers at that factory by the end of 2014...

Clothing company Fruit of the Loom announced Thursday that it will permanently close its plant in Jamestown and lay off all 600 employees by the end of the year.

 

The Jamestown plant is the last Fruit of the Loom plant in a state where the company had once been a manufacturing titan second only to General Electric.

This isn't being done because Fruit of the Loom is going out of business.  They are still going to be making t-shirts and underwear.  They are just going to be making them in Honduras from now on...

The company, owned by Warren Buffett's Berkshire Hathaway but headquartered in Bowling Green, said the move is "part of the company's ongoing efforts to align its global supply chain" and will allow the company to better use its existing investments to provide products cheaper and faster.

 

The company said it is moving the plant's textile operations to Honduras to save money.

So what are those workers supposed to do?

Go on welfare?

The number of Americans that are dependent on the government is already at an all-time record high.

And doesn't Warren Buffett already have enough money?

In business school, they teach you that the sole responsibility of a corporation is to maximize wealth for the shareholders.

And so when business students get out into "the real world", that is how they behave.

But the truth is that corporations have a responsibility to treat their workers, their customers and the communities in which they operate well.  This responsibility exists whether corporate executives want to admit it or not.

And we all have a responsibility to our fellow citizens.  When we stand aside and do nothing as millions of good paying American jobs are shipped overseas so that the "one world economic agenda" can be advanced and so that men like Warren Buffett can stuff their pockets just a little bit more, we are failing our fellow countrymen.

Because so many of us have fallen for the lie that "globalism is good", we have allowed our once great manufacturing cities to crumble and die.  Just consider what is happening to Detroit.  It was once the greatest manufacturing city in the history of the planet, but now foreign newspapers publish stories about what a horror show that it has become...

Khalil Ligon couldn’t tell if the robbers were in her house. She had just returned home to find her front window smashed and a brick lying among shattered glass on the floor. Ligon, an urban planner who lives alone on Detroit’s east side, stepped out and called the police.

 

It wasn’t the first time Ligon’s home had been broken into, she told me. And when Detroit police officers finally arrived the next day, surveying an area marred by abandoned structures and overgrown vegetation, they asked Ligon a question she often ponders herself: why is she still in Detroit?

Of course this kind of thing is not just happening to Detroit.  The truth is that it is happening all over the nation.  For example, this article contains an incredible graphic which shows how the middle class of Chicago has steadily disappeared over the past several decades.

Once again, even though we have never had a "recovery", it is a good thing that things have at least stabilized at a lower level for the past few years.

But now there are all sorts of indications that we are rapidly heading toward yet another economic downturn.  The tsunami of retail store closings that is now upon us is just one sign of this.  The following is a partial list of retail store closings from a recent article by Daniel Jennings...

  • Quiznos has filed for bankruptcy, USA Today reported, and could close many of its 2,100 stores.
  • Sbarro which operates pizza and Italian restaurants in malls, is planning to close 155 locations in the United States and Canada. That means nearly 20 percent of Sbarro’s will close. The chain operates around 800 outlets.
  • Ruby Tuesday announced plans to close 30 restaurants in January after its sales fell by 7.8 percent. The chain currently operates around 775 steakhouses across the US.
  • An unknown number of Red Lobster stores will be sold. The chain is in such bad shape that the parent company, Darden Restaurants Inc., had to issue a press release stating that the chain would not close. Instead Darden is planning to spin Red Lobster off into another company and sell some of its stores.
  • Ralph’s, a subsidiary of Kroger, has announced plans to close 15 supermarkets in Southern California within 60 days.
  • Safeway closed 72 Dominick’s grocery stores in the Chicago area last year.

And the following are some more signs of trouble for the retail industry from one of my recent articles entitled "20 Facts About The Great U.S. Retail Apocalypse That Will Blow Your Mind"...

#1 As you read this article, approximately a billion square feet of retail space is sitting vacant in the United States.

#2 Last week, Radio Shack announced that it was going to close more than a thousand stores.

#3 Last week, Staples announced that it was going to close 225 stores.

#4 Same-store sales at Office Depot have declined for 13 quarters in a row.

#5 J.C. Penney has been dying for years, and it recently announced plans to close 33 more stores.

#6 J.C. Penney lost 586 million dollars during the second quarter of 2013 alone.

#7 Sears has closed about 300 stores since 2010, and CNN is reporting that Sears is "expected to shutter another 500 Sears and Kmart locations soon".

#8 Overall, sales numbers have declined at Sears for 27 quarters in a row.

#9 Target has announced that it is going to eliminate 475 jobs and not fill 700 positions that are currently empty.

#10 It is being projected that Aéropostale will close about 175 stores over the next couple of years.

#11 Macy's has announced that it is going to be closing five stores and eliminating 2,500 jobs.

#12 The Children’s Place has announced that it will be closing down 125 of its "weakest" stores by 2016.

But it isn't just the retail industry that is deeply troubled.

All over America we are seeing economic weakness.

In this economic environment, it doesn't matter how smart, how educated or how experienced you are.  If you are out of work, it can be extremely difficult to find a new job.  Just consider the case of Abe Gorelick...

Abe Gorelick has decades of marketing experience, an extensive contact list, an Ivy League undergraduate degree, a master’s in business from the University of Chicago, ideas about how to reach consumers young and old, experience working with businesses from start-ups to huge financial firms and an upbeat, effervescent way about him. What he does not have — and has not had for the last year — is a full-time job.

 

Five years since the recession ended, it is a story still shared by millions. Mr. Gorelick, 57, lost his position at a large marketing firm last March. As he searched, taking on freelance and consulting work, his family’s finances slowly frayed. He is now working three jobs, driving a cab and picking up shifts at Lord & Taylor and Whole Foods.

So what does Abe need in order to find a decent job?

More education?

More experience?

No, what he needs is an economy that produces good jobs.

Sadly, the cold, hard reality of the matter is that the U.S. economy will never produce enough jobs for everyone ever again.

The way that America used to work is long gone, and it has been replaced by a cold, heartless environment where the company that you work for could rip your job away from you at a moment's notice if they decide that it will put a few extra pennies into the pockets of the shareholders.

You may have worked incredibly hard for 30 years and been super loyal to your company.

It doesn't matter anymore.

All that matters is the bottom line, and in the process the middle class is being destroyed.  But by destroying the middle class, those corporations are destroying the consumer base that their corporate empires were built upon in the first place.

 

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Mon, 04/07/2014 - 20:28 | 4634194 NemoDeNovo
NemoDeNovo's picture

Jobs we don't need no stinkin' jobs this is 'murhiKa bitchez

Obama phones all around..........

Mon, 04/07/2014 - 20:43 | 4634225 espirit
espirit's picture

And Nasa can always buy rides from the Russians... Rotflol.

Mon, 04/07/2014 - 20:45 | 4634236 Gringo Viejo
Gringo Viejo's picture

"The cockaroaches is eatin' my food stamps
and my wife
she sleepin' wi da Bees"

.........Blind Melon Chitlin'

Mon, 04/07/2014 - 20:49 | 4634247 espirit
espirit's picture

Gas, grass, or ass.  Else you can get out 10 miles up.

Mon, 04/07/2014 - 22:07 | 4634309 philipat
philipat's picture

Agreed, US persons are being deliberately thrown under the bus because the Corporatocracy doesn't need them, they have robots and cheap labour elsewhere to continue to inflate global profits.

The US economy comprises 70% domestic consumption so, for the economy to grow it needs EITHER a massive increase in capital investment (To grow the 30%, which is not going to happen) OR increases in consumer consumption, also unlikely with the present labour participation rate and declining real net disposable incomes. Ergo, the US economy is NOT going to grow. And you think they don't know that? The US comprises only 4% of the total population of the globe so, net net, it is more profitable to cut costs in the US and generate new revenues elsewhere. End of story.

If they really cared about the average Joe, the end of Globalisation and a massive dose of protectionism would very quickly restore the US economy and generate jobs and income. Of course, the Corporations, and their political employees in Washington, will never allow that to happen (See above), so don't hold your breath.

Mon, 04/07/2014 - 22:08 | 4634465 boogerbently
boogerbently's picture

So,

Do we want free market capitalism, OR, a forced return of industrial jobs to America?

Mon, 04/07/2014 - 22:24 | 4634506 zerozulu
zerozulu's picture

Last week I talked to my UPS guy and he said almost 95% stuff in his truck is from eBay or from Amazon.

Mon, 04/07/2014 - 22:28 | 4634515 TungstenBars
TungstenBars's picture

What's wrong with a real job?

Afraid to get your hands a little dirty?

Mon, 04/07/2014 - 23:24 | 4634550 TruthInSunshine
TruthInSunshine's picture

But...but...Warren Buffett & his partner in crime, Charlie "Fuck The Taxpayers" Munger openly & aggressively supported Barack ZerObama in 2008 & 2012 (not that McCain or Romney would have done anything better - Red Pill/Blue Pill) and received 17 billion USD in taxpayer bailouts of Berkshire Hathaway owned/controlled failures of companies for their contribution.

Tue, 04/08/2014 - 05:47 | 4634951 Nobody For President
Nobody For President's picture

Buy a politician - best ROI out there.

Tue, 04/08/2014 - 08:10 | 4635078 SWRichmond
SWRichmond's picture

So what does Abe need in order to find a decent job?

More education?

More experience?

No, what he needs is an economy that produces good jobs.

Exactly.

Sadly, the cold, hard reality of the matter is that the U.S. economy will never produce enough jobs for everyone ever again.

Wrong.  The economy is quite capable of producing the jobs we need.  All that has to happen is for the government to get out of the way.  If they will not do it themselves, and they seem unwilling to, as the regulatory state is the source of their ability to wring "contributions" from "constituents" in order to buy "elections", then what shall we do?

Tue, 04/08/2014 - 01:45 | 4634826 philipat
philipat's picture

A return to free market capitalism ISN'T going to happen. So your choices for the people are EITHER unrest to push for protectionism OR unrest and get used to a much lower standard of living. It's your choice, of course.

Tue, 04/08/2014 - 05:55 | 4634955 Nobody For President
Nobody For President's picture

So booger, you think what we have is 'free market capitalism'? If so, you are the stupidist fuck on this list: what we have is the most managed economy that corporate money can buy, and guess what? Citizens are not the benificiaries. 

Get your head out of your ass and join us here on ZH who get it. Or move to Ohio and live with the detrius left from globslim.

We are so screwed wirth assholes like boogerman believing this shit. Or maybe he is just a trolll, and I got suckered.

Mon, 04/07/2014 - 21:24 | 4634339 aVileRat
aVileRat's picture

Froot of the Loom (sic). Another fine Berkshire investment.

I wonder if Warren was at the board meeting when they approved schlacking these jobs. My second question is if this decision by his handpicked reps was voted on before or after his most recent "made in america" promote during the NCAA "perfect bracket" gimmick.

On one hand, Warren spent a life time trying to develop the financial education and retail participation in stock markets post 1935. For this and his persona that enabled people to at least try to become proactive about finance vs. chasing shysters & technicians (shysters) he should be applauded. Was it pure ? Likely not, but pure'er at least than others who emerged from the 1950's go-go conglomerate era. So for that impact on American finance you need to feel sorry for him. Watching Berkshire be consumed by the game he tried so hard to create is never easy in high finance, even going back to the brutal Sherson days. Byproduct of the zero-alpha world, same as Gross. Consumed by the game they helped build.

On the other hand, Warren and his companies to tend to promote capitalism for some, bailouts for me. The shoe may look different on a 49 billion dollar foot, but WB should have went under after Hurricane Andrew. Oddly it was around the 1990's when WB changed from being a big equity man to promoting the track record and started doing bolt on acquisitions to his core reinsurance & retail manufacturing product lines (distillates, paints, chemicals, securitization/repo gimmicks). So on that hand, you realize that Warren "peaked" about the same time US domestic manufacturing and R&D in applied sciences "peaked". Since 1995, WB and the whole value investing game, while fine at finding mature companies relies on prey where the market + fixed capital is fresh and can be stripped for cash cow dividends or leverage. Since most US fixed capital not in the energy or IT/military logistics sectors is at least 30 years old by now, the ability to find bigger fish to grow the BK/A bookvalue has dwindled to zilch.

 

On a related note, I wonder if Loom is going to use the same OEM vendor as Joe Fresh and the "walmart" specials.

 

Mon, 04/07/2014 - 22:25 | 4634509 zerozulu
zerozulu's picture

America is going back to slavery.

Tue, 04/08/2014 - 06:07 | 4634962 Nobody For President
Nobody For President's picture

Fruit of the Loom = FTL, which is on their underwear.

FTL = Fuck The Ladies (Back when I was in high school a very long time ago.)

Now it is more FTU = Fuck the unemployed, or maybe just FU ...

 

 

Mon, 04/07/2014 - 21:20 | 4634333 Cattender
Cattender's picture

he gave us a phone.. he gonna do more!

Mon, 04/07/2014 - 20:35 | 4634208 syntaxterror
syntaxterror's picture

You got sold out by your own people america. 

Mon, 04/07/2014 - 21:02 | 4634279 chemystical
chemystical's picture

"You got sold out by your own people america"

Can't completely agree with that.  Americans may have stood by and watched themselves be addlepated, but they were led down that path by soulless dual citizen sociopaths and their Quisling goyim.

Mon, 04/07/2014 - 21:42 | 4634390 Dr. Sandi
Dr. Sandi's picture

Corporations are people too, you know.

Mon, 04/07/2014 - 22:27 | 4634511 zerozulu
zerozulu's picture

from now on you will be thoroughly checked before leaving the country.

Tue, 04/08/2014 - 01:09 | 4634797 A Nanny Moose
A Nanny Moose's picture

What did "my own people" get for their money?

Tue, 04/08/2014 - 01:26 | 4634815 813kml
813kml's picture

Nothing

Tue, 04/08/2014 - 02:50 | 4634882 A Nanny Moose
A Nanny Moose's picture

There is always sombody left to enslave.

Mon, 04/07/2014 - 20:44 | 4634209 LetThemEatRand
LetThemEatRand's picture

This is by design.  The .01% have become fabulously wealthy from this model, and they aim to rule the ruins that remain.   Long moat building companies and private security providers.  A return to mean.

There was a group of guys once who stood up to this model that existed for most of mankind's existence, and they created a country that defied the Lord/serf paradigm.  It kicked ass for a while.  Then the population was convinced that the "productive class" is the basis for a sound economy, and that only capital -- not labor -- is responsible for their success as a society.  The capital concentrated, and the labor got Obamaphones, NSA, Homeland Security, and the MIC.  Soon to be abject poverty and serfdom.

Mon, 04/07/2014 - 21:34 | 4634376 Totentänzerlied
Totentänzerlied's picture

"created a country that defied the Lord/serf paradigm"

Do lefties actually believe this? Lol. Remind me how many of these "guys" were not aristocrats, and who their financers were?

(What they actually did was defy the nobility vs aristocracy vs royalty trichotomy which had dominated European politics since the 1000s, they - being untitled gentry - did themselves a favor and eliminated all forms of both hereditary nobility and royalty, making their own class the sole ruling class - remind me who it was that had sufferage in the earliest decades? Elimination of "serf" as a legal class was necessary for developing a capitalist economy - labor had to be free and unencumbered and urban, not tied to the land and to rural owners who would never be stupid enough to manumit their chattel for the sole benefit of their rivals - the capitalists. The belief that "the "productive class" is the basis for a sound economy" is now easily comprehended, no mythology about exceptionalism, destiny, or any other nonsense is required. The rest of the West copied this plan, by the way, and the results certainly show it. But none of this even begins to explain how any of this was possible [labor played a very minor and passive role, incidentally].)

Tue, 04/08/2014 - 06:12 | 4634967 Nobody For President
Nobody For President's picture

Anybody who has to use umalats, or whatever the fuck the two dots are over the a in your name, is, by definition a total asshole and troll, and will be downvoted heavily. Better switch names and try again, asshole.

Mon, 04/07/2014 - 21:45 | 4634397 CrashisOptimistic
CrashisOptimistic's picture

It's much worse than by design.

It's inevitable.  There is nothing anyone can do to stop it.

Mon, 04/07/2014 - 20:37 | 4634217 i_call_you_my_base
i_call_you_my_base's picture

As you can see, everyone retired in 2008.

Mon, 04/07/2014 - 20:42 | 4634223 Caveman93
Caveman93's picture

I retired before retirement was cool. ;)

Mon, 04/07/2014 - 20:46 | 4634241 Colonel Klink
Colonel Klink's picture

I didn't retire per se, as I'm too young.  I stopped working by choice so as to not support the corrupt system.  But until the system collapses, I've retired for all intents and purposes.

Mon, 04/07/2014 - 21:08 | 4634302 americanreality
americanreality's picture

Ditto.

Mon, 04/07/2014 - 20:42 | 4634221 Caveman93
Caveman93's picture

I hope the paper money ignites into flames. One day soon...still waiting.

Mon, 04/07/2014 - 20:43 | 4634227 Colonel Klink
Colonel Klink's picture

In a word....YES!  All the while your government, corporations, media, finance, and representatives have been LYING to you.  Please let me know when America wakes up.

Mon, 04/07/2014 - 20:52 | 4634251 espirit
espirit's picture

Dood: /doncha know DWTS is on?

Mon, 04/07/2014 - 21:24 | 4634348 Colonel Klink
Colonel Klink's picture

I'd rather cut my wrists.

Mon, 04/07/2014 - 21:43 | 4634392 Dr. Sandi
Dr. Sandi's picture

I'd rather go out in a blaze of police gunfire.

Tue, 04/08/2014 - 01:15 | 4634802 A Nanny Moose
A Nanny Moose's picture

Be careful what you wish for. We will need you before this is over.

Mon, 04/07/2014 - 20:51 | 4634249 Al Huxley
Al Huxley's picture

Hey, it looks almost exactly like a chart of the mining stocks.

Mon, 04/07/2014 - 20:52 | 4634250 Stuck on Zero
Stuck on Zero's picture

NAFTA = America's Waterloo.

Mon, 04/07/2014 - 21:14 | 4634321 chemystical
chemystical's picture

You're off by a few decades.  Research trade deficits.  Nixon visiting China was the tipping point.  Later he forgave millions of $ in import duties owed by Jap consumer goods and Jap autos.  That was the death knell for American mfg.  The South's textile business was later sold out to SE Asia.  As a result of all that we have the Free Shit Army of erstwile employed folk.  Oh, yeah, let's not forget importing 20MM illegals to do the jobs that "we don't want to do".

Nixon's buddy Milton Friedman said that trade deficits did not matter.  He apparently attended the Dick Cheney School of Economics at Nancy Pelosi University.  Got his Nobel Prize from the same group that awarded one to Krugman. 

Mon, 04/07/2014 - 22:15 | 4634490 fattail
fattail's picture

I had clients that would always complain about a lack of good labor.   Just nobody wanted to work themselves to death for someone elses benefit for little pay and no benefits.  I seriously think some of those sociopaths actually expect people to work for free.  The idea of paying a good wage to get good help never crossed their minds.

Mon, 04/07/2014 - 22:31 | 4634527 cynicalskeptic
cynicalskeptic's picture

It's all about the unending pursuit of the cheapest possible labor costs by our corporate overlords (and the top execs getting the resulting increased profits).

Any job that can be sent overseas to a lower cost (and less regulated - and less safe, more polluted and worse) locale is offshored and cheap labor (be it H1B or illegal) is brought in for the jobs that cannot be moved.

You are looking at a determined effort to revive serfdom.  Our aspiring lords and masters do not just expect us to work for free - they expect us to willingly sell ourselves into servitude in exchange for food and shelter - and minimal levels of those.  This mindset worsens with each generation removed from actual wealth creation.  As more and more wealth is passed through inheritances, those inheriting it become more and more obsessed with holding on to and increasing their wealth.   Look at the Walton heirs (Walmart) SEVEN people are worth more than 40% of he WHOLE American population.   Alice Walton has spend millions on an art museum in Bentonville AK as a means to 'give back' (a total scam where the wealthy write off 'donations' to 'charitable' endeavors).  If she REALLT wanted to 'give back' to the community she'd have Walmart pay its employees more and let them work 40 hours a week.

Tue, 04/08/2014 - 00:32 | 4634742 ChargingHandle
ChargingHandle's picture

I have nieces and nephews in college and I do not feel very optimistic about their professional prospects. It seems as though you'd better have a specialized skill set.  Med school , law degree, architect, dentistry,  etc. A degree and few hundred Facebook contacts will not get them shit and I sincerely want them and millions others to have opportunities for a real job. Capitalizing on the opportunities is another topic. 

 

 

 

Mon, 04/07/2014 - 20:53 | 4634259 foxmuldar
foxmuldar's picture

You can't be eating out much on a part time workers salary. Most of the jobs that are created are part time. You won't hear Obozo mention this when he says the economy is picking up. Hope and Change has left many with no Hope and only lose change in their pockets. 

Mon, 04/07/2014 - 20:53 | 4634260 Kreditanstalt
Kreditanstalt's picture

"And doesn't Warren Buffett already have enough money?"

Who is this guy to tell someone when they have "too much money"? 

Mon, 04/07/2014 - 21:22 | 4634342 chemystical
chemystical's picture

I'm not of the mindset that leads to believing that we should tax "Bill Gate's" kid at 99.99% because he did nothing to deserve the inheritance*, and then...give it to someone else who....um, likewise did nothing to deserve it.

But if the author of that quote used a clarifier such as "corruptly-gained" in front of money, then I'd agree.  Who's to say that Willie Sutton and Dillinger 'earned' too much?

* i've heard that exact phrase from several of the radical "left".  The 2nd half is my addition/rebuttal.  curiously it has yet to elicit a reply

Tue, 04/08/2014 - 09:38 | 4635330 Nobody For President
Nobody For President's picture

Willie "That's where the money is" Sutton and Dillinger (who helped create the modern FBI) earned their money allright - and society, we citizens, got the tax back. Sutton spent half his life in prison, and Dillinger got shot down.

Where the fuck is Jon Corizine? Or Jamie "I'm richer than you" Dimon now?

Tue, 04/08/2014 - 13:50 | 4636257 Iam_Silverman
Iam_Silverman's picture

"Where the fuck is Jon Corizine? Or Jamie "I'm richer than you" Dimon now?"

Still out there robbing the common man.  Oh, wait - that was a rhetorical question, wasn't it?

Mon, 04/07/2014 - 20:54 | 4634261 juggalo1
juggalo1's picture

I'm not sure I understand this article.  As he highlights, the major issue which conservatives and liberals will agree on is that the major issues confronting the American workforce are technology and globalization.  Yet nowhere in the article did he suggest a "solution" to globalization, or did he even really define these as problems.  Some more intelligent commentary has pointed out that the world appears to have reached "peak work", that is the number of hours of work needed to run the economy have been decreasing continually.  Economic growth has been outpaced by productivity, and as a result labor is inevitably made redundant.  No one has found the solution yet.

Mon, 04/07/2014 - 22:30 | 4634521 fattail
fattail's picture

Read  "The Second Machine Age".  They are working on a $20,000 strawberry picker that works 24/7 and takes no water or bathroom breaks.   Labor is about to get real cheap which is deflationary, but the budget deficits to buy the EBT cards and MIC make work budget is inflationary.  I can't help but think TPTB are working furiously to find a solution to all of the useless eaters and surplus labor.   

Tue, 04/08/2014 - 00:02 | 4634698 cynicalskeptic
cynicalskeptic's picture

Expect the 'traditional' solution to surplus population.   War and pestilence.  

Mon, 04/07/2014 - 20:55 | 4634264 Jim B
Jim B's picture

The service economy was, is, and always has been a joke....  A story spun by corporate shills and lobbyists!

 

Mon, 04/07/2014 - 20:59 | 4634268 chemystical
chemystical's picture

Re Fruit of the Loom:

"part of the company's ongoing efforts to align its global supply chain"

Uh huh, because there's no need <wink wink>to mfr a product just a few miles from 300MM end users.

Fuck every one of you worthless pieces of shit in D.C. that sell out your (putative) countrymen to the higest bidder (aka palm greaser), and fuck you mfrs who sell out to the lowest bidder.

Since Nixon went to China the NPV of the US's cummulative trade deficits is $17 TRILLION dollars.  Where have we heard that figure before?  Oh yeah, the national debt.  No, I'm not saying that there's a direct 100% relationship, but there's a lot of cause and effect.  The FSA used to have jobs; now their job is voting for bigger .gov

Put an economic fence around the country, and play the same game that others do.  Some "economists" and scare mongers will tell you that the 1930 Smoot-Hawley Tariff Act caused to the Great Depression.  BULLSHIT.  Bankers led to that.  PERIOD.  The largest transfer of wealth in world history.  Current economists at least discredit the Smoot-Hawley bs but rarely admit to the latter.

The USA survived and thrived on mostly tariffs and duties and royalties until 1913 when its citizens were introduced to the Zio-banker's fiat "Federal " reserve notes, the 16th Amendment aka Zio-bankers toll on the rest of us for breathing, and the Zio-bankers collection agency called the IRS.

Fuck every last one of them.

 

Tue, 04/08/2014 - 06:58 | 4635008 Unstable Condition
Unstable Condition's picture

+1

Nailed it.

Mon, 04/07/2014 - 21:01 | 4634277 foxmuldar
foxmuldar's picture

You won't hear Obama slamming Buffett for moving his fruity Loom production to Honduras or His Jobs Czar Jeffrey Immelt who's done his share of shipping jobs overseas. Both good at kissing Obama's ass. 

http://www.cbsnews.com/news/the-jobs-czar-general-electrics-jeffrey-immelt/ Its all about the buck.Screw the people. Let them eat cake.

 

Mon, 04/07/2014 - 21:18 | 4634332 Everybodys All ...
Everybodys All American's picture

So sad since we all know that Obama is trying so hard to get America back to work. I mean look at all the vacations and golf outings he's forced himself to take to focus on the job at hand.

Tue, 04/08/2014 - 00:40 | 4634753 strayaway
strayaway's picture

GE, along with Boeing, was also fortunate enough to be allowed to sell products to Iran as of a couple of days ago.

Mon, 04/07/2014 - 21:02 | 4634283 SunRise
SunRise's picture

It's the Federal Reserve.  You go to work.  They pay you in dollars.  You store your life (labor) in dollars.  They rot those dollars like stale bread.  This is why you can't win.

Mon, 04/07/2014 - 21:03 | 4634285 Spastica Rex
Spastica Rex's picture

Loss of jobs is good for Americans and/or their own fault.

Mon, 04/07/2014 - 21:05 | 4634293 SunRise
SunRise's picture

It's your government.  You go to work.  They pay you in dollars.  Your labor is stored in those dollars.  Those dollars are taken without your permission.  To take your labor (stored in dollars) without permission is slavery.

Mon, 04/07/2014 - 21:50 | 4634411 mrpxsytin
mrpxsytin's picture

Yes, but... what I'm learning here on the Hedge is that the dollars are only leased to the people. So not only do you pay rent (i.e., interest and taxes) on any dollars you are given, but when the lease expires the dollars are repossessed by the issuer (i.e., inflated away). However, the people must accept that they enter this lease agreement voluntarily. They have decided that they need the dollars. 

If you look at this from a very abstract perspective you see that the finance system is actually a manifestation of free market forces. The finance system is a product of the people's demand for dollars. The financial system itself is not a free market, but it seems that it arose out of free market principles of supply and demand. If people stopped demanding dollars then our current finance system would cease to exist. If this is true then the people are demanding their own slavery. 

It would seem that the majority of people are not capable of being their own masters. Perhaps, they are only capable of being slaves. I don't know.  

Mon, 04/07/2014 - 21:21 | 4634338 foxmuldar
foxmuldar's picture

Remember the good old days when a monthly jobs report of 300,000 was considered good. Now we look at anything near 200,000 as positive. Oh I forgot the 800,000 jobs created the month prior to the last election. You remember that report don't you? 

Now we have a new 800,000 job loss potential thanks to Obama's EPA. 

Inhofe Says EPA's New Boiler Rule Could Kill Nearly 800,000 Manufacturing Jobs

http://www.foxnews.com/politics/2010/09/28/inhofe-says-epas-new-boiler-r...

Mon, 04/07/2014 - 21:25 | 4634352 cpzimmon
cpzimmon's picture

It happened before our eyes, and we didn't know it was happening.

Signed,

The sheeple.

Mon, 04/07/2014 - 21:26 | 4634356 foxmuldar
foxmuldar's picture

Whats with this 800,000 number? 

CBO: Health law to shrink workforce by 800,000

http://www.politico.com/news/stories/0211/49273.html

 

Holy shit thats 1,6 Million jobs potentially lost due to two of Obama's pet projects. 

Mon, 04/07/2014 - 21:26 | 4634358 BiPolarFrenchman
BiPolarFrenchman's picture

One thing the article doesn't cite is the change in demographics, not that I think the stats aren't worrying on their own, but I want to know how much of the population has changed and what defines working age?  

Mon, 04/07/2014 - 21:49 | 4634409 Orwell was right
Orwell was right's picture

Great articles...hits the nail on the head.   Until America creates useful jobs, at reasonable wages.....it is dead meat.

Mon, 04/07/2014 - 22:01 | 4634438 CuriousPasserby
CuriousPasserby's picture

How about less government regulation and taxes, so more people can start businesses.

Mon, 04/07/2014 - 22:07 | 4634450 SweetDoug
SweetDoug's picture

'

'

'

We should all find any Fruit of the Loom undies we have laying around and squeeze out a great big dollop of fruit into them, and mail them to Buffet c/o Fruit of the Loom, with a note sayng we won't be buying anymore of them.

Tariffs and trade barriers will fix these bastards and all the rest of them, in the 'turd' world.

 

 

•?•
V-V

Tue, 04/08/2014 - 09:25 | 4635297 FrankDrakman
FrankDrakman's picture

Smoot, meet Hawley.

Mon, 04/07/2014 - 22:06 | 4634457 Duc888
Duc888's picture

 

 

Fedgov is GREAT at "creating yobs"  Look at DHS and TSA.

 

They should just hire EVERYONE to anally probe their neighbor to the right and then tax everyone at 90% rate or so.

 

Problem solved.

 

That was easy.

Mon, 04/07/2014 - 22:07 | 4634461 Never One Roach
Never One Roach's picture

Don't stand in an unemployment line when you can easily join the FSA!

Mon, 04/07/2014 - 22:07 | 4634463 I Write Code
I Write Code's picture

In business school, they teach you that the sole responsibility of a corporation is to maximize wealth for the shareholders.

Nosir, it is never that simple.  First of all, most executive educations include bits about community service.  It's mostly PR but it's also good business.  Second of all, I *hope* any biz school education warns you against killing the golden goose.  If you short-term optimize, you long-term lose.  Of course American business has been known for that for the last two generations, and therein lies the problem.  But it's NOT what is taught in any competent curiculum.

Mon, 04/07/2014 - 22:25 | 4634508 shutdown
shutdown's picture

Remember this one?

"If you don't like it here, why don't you move to Russia?"

It certainly has an entirely new meaning these days!

 

Mon, 04/07/2014 - 23:00 | 4634594 Aussiekiwi
Aussiekiwi's picture

Lol, amusing when Russia now is gaining the moral high ground over the US, how did that happen? remember when the US Government had to assure Russia that if they returned Snowden they would not torture him....well not by their definition of torture anyhow, a couple of hundred water boardings is just an interview.

Mon, 04/07/2014 - 23:07 | 4634612 Aussiekiwi
Aussiekiwi's picture

Lol, amusing when Russia now is gaining the moral high ground over the US, how did that happen? remember when the US Government had to assure Russia that if they returned Snowden they would not torture him....well not by their definition of torture anyhow, a couple of hundred water boardings is just an interview.

Mon, 04/07/2014 - 22:37 | 4634543 ebworthen
ebworthen's picture

No fucking jobs.

You want it in plain English?

No fucking jobs.

Mon, 04/07/2014 - 22:40 | 4634551 1ifbyland
1ifbyland's picture

'cause everyone grows up wanting work the line.  Not like you didn't have 20 years notice.

Mon, 04/07/2014 - 22:58 | 4634589 kchrisc
kchrisc's picture

This job will need filled before any jobs come back to the American people:

Job Opening: Restorer of the American People and Pride

Must be pissed off, able to weld weapons and operate guillotines. Requires the ability to scale fences and walls, sack offices, throw molotov cocktails and destroy vehicles of the enemy. May require the occasional need to throw an armored car off of a bridge.

Having a working knowledge of the Constitution, Bill of Rights, Declaration of Independence and Rothbard economics is a plus.

On the job training is available.

All ages welcome to apply at their local pol, crat or bankster office of oppression.

Mon, 04/07/2014 - 23:25 | 4634639 rsnoble
rsnoble's picture

"Sadly, the cold, hard reality of the matter is that the U.S. economy will never produce enough jobs for everyone ever again."

 

What the fuck are you talking about they just said we had recovered all the jobs lost in the recession this past friday!!!!!!

LMAO. They did say that though.

Tue, 04/08/2014 - 01:03 | 4634794 drstrangelove73
drstrangelove73's picture

And they will keep lying like that until we prize their cold,dead fingers off the levers of power

Mon, 04/07/2014 - 23:38 | 4634665 pashley1411
pashley1411's picture

"Comparative advantage" is a dream world.  

The true model is which country's leadership has lost the fewer marbles.

Tue, 04/08/2014 - 00:26 | 4634729 strayaway
strayaway's picture

Warren Buffett pointed out to us a few years ago that his secretary was paying a higher percentage of her earnings than he was. He thought that was wrong. Fast forward a few years and Warren Buffet reduced 600 of his employees' taxes to zero.

Tue, 04/08/2014 - 00:33 | 4634744 mumbo_jumbo
mumbo_jumbo's picture

"In business school, they teach you that the sole responsibility of a corporation is to maximize wealth for the shareholders"

 

and all this time i kept thinking it was about building quality products that world markets wanna buy, I've said this for years but it appears to me that a corporations stock price is now more important than the products or services they provide.

Tue, 04/08/2014 - 00:51 | 4634773 Ayr Rand
Ayr Rand's picture

Do the math on employment numbers. In order to have the same proportion of the population working as we had in 2007, 10M jobs would have to be gained. 18M jobs to get back to where we were in 2000. Which is why the NFP numbers are so funny-- a print of less than 250K new jobs every month means we are not even keeping up with population growth. Need prints of 500K continuously for 3 years to get back to the employment of 2007. Do you think that the Fed and 0bama are paying attention? So far, they are scoring a solid F-.

Tue, 04/08/2014 - 01:00 | 4634791 drstrangelove73
drstrangelove73's picture

Started a business 32years ago.Peaked at 65 employees 8 years ago.
2008-9 were the worst years I've seen in 32,and our business has never really come back.
Why?
Because we have a Marxist president,and a Marxist senate,and they and the central bank morons are killing the economy.
Their 1930's style prescriptions for society and the economy are just death to doing business.This isn't a recession,my friends,this is a depression.These are the same ideas that caused the Great Depression.Had enough,yet?
Tell all your friends-vote AGAINST the democrat party whenever and wherever you can,and vote for any statewide measure that keeps them from perpetuating election fraud.
It's our only hope

Tue, 04/08/2014 - 01:36 | 4634824 laomei
laomei's picture

Sadly, totally not a marxist, despite what you hear on rush

Tue, 04/08/2014 - 06:00 | 4634957 SunRise
SunRise's picture

It's not the label, it's the deeds.

Tue, 04/08/2014 - 06:55 | 4635004 Unstable Condition
Unstable Condition's picture

Oh, he definitely has a Marxist ideology. However, he has been placed in head position of a Fascist system and has continued to make our problems worse than they would typically be.

Ending the Fed, the 16th amendment and outlaw lobbying would be a refreshing start, but I know this will never happen, so nothing changes.

Tue, 04/08/2014 - 02:28 | 4634849 bearparadigm
bearparadigm's picture

"Buhu, the foreigners are taking our jobs"

"Buhu, Warren Buffet, the capitalist pig, is anti-patriotic because he is moving jobs abroad"

"Globalism is bad for US"

100 years ago and earlier, globalism was good for the US, and Europe was busy creating trade barries against competition from this "emerging economy". Today, when the internet and electronic communication is enabling a global supply chain and production, forcing another shift in demand for unqualified, less productive labour, globalization is suddently the Beast in the Revelation.

Dude, instead of critisizing globalization, which is promoting global (and not just national) welfare development, you should be attacking those who steal from those who save and destroy capital formation by stimultating deployment of funds into un-productive assets - e.g. the entire financial sector lobby that is ultimately responsible for the money printing carried out since the days of Richard Nixon. They are the real culprits responsible for the destruction of American jobs and overall labour productivity, seen by inflation adjusted household incomes reducing over the last 13 years.

As for "poor Abe Gorelick", who is working three jobs - I'll bet you a dollar that his standards of living and income is at least 5 times higher than those of the hondurian workers who will get employed in your Fruits of the Loom factory example. His real problem is the life-long conditioning he has been exposed to, telling him what he needs to consume not to feel poor in America. So, I am not crying for him either.

Tue, 04/08/2014 - 03:56 | 4634906 laomei
laomei's picture

Here's the dead honest fact of the situation:

This is a fucked up system that is demanding infinite growth from a finite world.  Furthermore the actual beneficiaries of this system are few and far between.  As that wealth is hoarded, there are simply not enough outlets for it, not real ones anyways.  When you are sitting on a few grand of savings, you manage your investments carefully.  When that number is in the billions however, fuck if you know what it's all in, you pay people to figure that out for you.  Crazy money gets pissed away on complex dealings which benefit no one in the real world and encourage loopholes to boost returns which actively harm those still existing in the real world.

 

The real problem here is that earnings mean nothing without savings and wealth.  Without that, it's just paycheck to paycheck hand to mouth living.  The system is rigged to sequester liquidity injections in the hands of those who are just going to effectively sit on it.  There are two economies going on.  The rich and the poor economy.  In the poor economy, wages are going down, jobs are being eliminated to boost profit, prices are being increased.  In the rich economy, it might as well be the roaring 20s.  Those who do not need to worry about money are finding it easier and easier to get more of it.  But it's coming from those at the bottom and it's not going back to them either.

 

This situation is not unlike the circumstances which led to "Jews stealing all the money" pogroms.  The Jewish populations of Europe tended to be rather insular economically.  You take money from anyone, but you only spend it within the community.  With dietary restrictions, you're not even buying your food from the outside groups.  If you employ outsiders, it's for menial positions that are "beneath" the community, while at the same time ensuring that the community gets back as much of said worker's paycheck as possible, loans are a great vehicle to do this.  It's a parasitic relationship, and when society can bear no more.. or a distraction is needed for venting of unrelated strife, it makes a great target. 

Despite all the economic theories claiming otherwise, it's all zero-sum in the end, the size of the pie does not magically grow.  To grow rich, a society MUST create an imbalance of trade with another.  Someone gets fucked in the end, but ideally it's not you.  The economic theories promoted relied on exploitation of untapped resources.  If you have a piece of pie and I have a piece of pie, and you don't know or care about the filling, I can take your filling and it won't mean anything to you, and thus "grow" the pie.  What the US has done however, is replace actual goods and actual manufacturing with exports of credit... selling futures and then playing games to try and lock them away from actually being exercised.  Toobad there are more futures out there than there is actual pie.

 

The filling of our pie is highly guarded and not accessible to normal people, it never has been directly.  The crust is still there though, however it's running low as well.  The America that promised crust with a potential for filling has turned into "maybe you'll get some crumbs".  And rather than turn attention to the fat slobs hoarding all the filling, the peons fight over the crumbs with each other.  Maybe it's because deep down, they know the filling is gone, the crust mostly gone, and crumbs are all that is realistically left remaining.

 

Globalization isn't bad, per se.  It's just warping to the markets.  The US benefitted greatly from it during the post-war boom (because everywhere else was fucked).  The boomers grew up in a crazy world where they were top shit.  Jobs? Easy to get because the rest of the world was still fucked.  Advances in tech? Boosted by the seizure of Germany IP and scientists.  And for some reason the US society at large had not gotten overly backstabbing yet in all this with top-pay still a reasonable multiple of bottom-pay.  Bubbles were blown, greed took hold, bubbles popped and people got mean.  Consumerism was pushed and crammed into everyone's faces, buy shit, buy endless amounts of shit, fill your life with shit.  That works fine as long as it's all staying domestic and you're top shit.  Well, that consumerism mindset has not faded, not really, if anything it's gotten worse.  Sure it's been refined into various niches and cliques, but it's all being subsidized by imports now.  Made for cheap overseas, jacked up by a factor of 10 once imported and sold for less than it would cost to make it domestically.  

Here's what's left in the US now:

Agriculture - increasingly controlled by a small handful of people, increasingly being corporatized.

Service Sector - If it requires a physical presence, it's safe until it doesn't.  And the pay is generally crap enough to not justify finding ways to automate it (yet).

IT - It's another boom, but there's no actual reason for it being located where it is, H1-B employees could just as easily stay home with the US staff being exported... probably be cheaper as well.  The proximity of large corporations to one another is the only thing keeping it as it is, once that starts to change, it's all over.  Furthermore, it's not a healthy boom, replacing jobs with code on a massive scale. Those writing the code get some of that aforementioned crust, but the filling all goes to the top... and it doesn't require that many people either.

Military - Finally, a growth sector for manufacturing.  Protected by powerful interests it's hard to outsource this and easy to overcharge.  Unfortunately, there's essentially zero actual need for this, might as well just hand out bags of money for free.

Real Estate - Hard to outsource a job selling and managing physical property, too bad no one real has money to buy any though.

Finance - All that money has to come from somewhere, this is a parasitic sector now

"Middle men" - Marketing, PR, what have you, it's all bullshit and all about getting sheep to overpay for worthless crap that they don't need.  Or convincing them that smaller size for the same price is better.

Tue, 04/08/2014 - 08:05 | 4635072 d edwards
d edwards's picture

This is your "hope and change" economy, the "fundamental transformation of the USA" candidate 0bamao promised in 2008.

 

Not working out so good, is it? marxist socialism never does-it fails every time it's tried.

Tue, 04/08/2014 - 08:16 | 4635097 FrankDrakman
FrankDrakman's picture

"Despite all the economic theories claiming otherwise, it's all zero-sum in the end, the size of the pie does not magically grow."

Balls. In almost every way, we are tremendously richer than we were 200 years ago. In 1815, few people had indoor plumbing, central heating (let alone air conditioning), no electricity (so, no TV, microwave, or PC), no cars, no airplanes,no medicines (germ theory still wasn't invented), few paved roads, etc., etc. About half of all children died before age 10, and many women died giving birth. Malnutrition and getting enough to eat were a problem for 90% of humanity.

The pie isn't getting bigger? We've gone from one pie to a whole bloody shop. Typical BS from a closet commie.

Tue, 04/08/2014 - 12:45 | 4636015 laomei
laomei's picture

Not really no, it didn't grow.  There have been advances, methods of eating the pie have changed, new parts of the pie have been accessed, but the pie didn't magically grow any larger.  There are always tradeoffs involved.  All those things you are referencing, as you mentioned, 200 years ago simply didn't matter because they didn't exist.  Everything comes from something, and a large part of it was via exploitation and opportunity denied.  Not saying it's bad, just pointing out reality.

Tue, 04/08/2014 - 08:53 | 4635179 No Quarter
No Quarter's picture

Most of us (here at ZH anyway) seem to have a relatively firm grasp of WHAT has transpired in the past, and what is currently happening that has led to this moment of shrinking labor, shrinking freedom, employment, pay manufacturing et al... Post after post after post in almost any thread regurgitates the same basic information. "Its all FUCKED and here let me explain why>>>"  or "the REAL problem is xyz.."

 So the question should be, what are we going to DO about it? I see some  folks tuning in and dropping out of the machine (non-participation), some just waking up to the real state of things, most just chugging along in their little worlds.  Very little pro-active discussions, threads.. Lots of apathy. Yeah, just wait for the reset.. wait for it, wait for it, any time now and we can start rebuilding from the ground up. It'll be great. We can have the life we want.. Probably every one of us here figures in our little fantasy that we'll be part of the 10% or whatever is left around since we're so forward thinking, prepared, stacked out, armed... Odds are pretty good we won't be. Not being pessimistic, just a realist.  Seems to me waiting for that day to come is kinda like walking toward the horizon. Need to live the life we want NOW.

 

 Not to say i have done anything of any quantifiable value yet besides trying to wake others. My waking up has been relatively recent..Still a slave along with all the rest. Just not content with that any more. Cogs work strikes a chord with me and am striving for personal "Sovereignty"  but i for one am also very tired of waiting.  

 

Tue, 04/08/2014 - 09:17 | 4635275 FreeNewEnergy
FreeNewEnergy's picture

Black markets, bitchez!

Under-the-table-off-the-books-non-reported income is the only way to go.

In the book about Prohibition, "Last Call," it was stated that during the height of Prohibition, the underground economy was larger than the "official" economy. I suggest we review that model and update it to suit the "modern" economy.

A few weeks back I paid a mechanic $150 cash to fix my van. Last weekend, a friend paid me $200 cash for some yard work. This summer I will be selling my vegetables in front of my house (well, I know, I'm only "renting") for... wait for it... cash.

Will any of that money ever be reported to the IRS and spent to the Treasury to support a system which is soley designed to suck any excess capital away from the citizenry?

Don't think so.

Sure, it's illegal, but so is the bastard government we've created. Go ahead, put me in jail, feed me, clothe me, educate me and keep me safe from the rest of the world for not paying protection money. Dumbfucks.

Fuck the government. Biggest criminals on the planet and they've taught us to be the same. Trickle down morality.

Tue, 04/08/2014 - 11:56 | 4635790 Chuck Knoblauch
Chuck Knoblauch's picture

There must be lots of cash hidden underneath the mattress.

I'm surprised burglaries aren't on the rise across America?

Tue, 04/08/2014 - 11:51 | 4635781 Chuck Knoblauch
Chuck Knoblauch's picture

LOOK AT THAT TAX BASE!

Do NOT follow this link or you will be banned from the site!