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Difference Between US Manufacturing Workers And Waiters Drops To A Record Low
While one of the much trumpeted highlights of today's jobs report was the 0.5% jump in average hourly earnings, the reality as even Goldman's Jan Hatzius is quick to note, is that on an annual basis, wage growth is still stuck near the lowest levels recorded since the Great Financial Crisis.
So once again, for all those who scratch their heads trying to explain why this wage erosion continues despite the "best efforts" of the Fed (to make billionaires into trillioinaires), here is a simple explanation: in January the number of waiter and bartenders rose by 35K to 10.946 million. On the other hands, that one job category that once made America a great country and the dollar the global reserve, manufacturing, rose by just 22K to 12,330K, the lowest monthly increase since November.
And in context, as the chart below shows, the difference between America's manufacturing workers and waiters has dropped to a record low of just 1.387 million. The same difference was 11.3 million on January 31, 1990.
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The "service economy" working its magic.
As in those without the ability to counterfeit money will "service" those who do have the ability to counterfeit money.
We have gone full-retard, you quite literally have a country with two classes now "The Counterfeiters" and the "Slaves".
Who needs to produce anything, that is so 1990's
Layoff List: http://www.dailyjobcuts.com
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We should all get our insurance licenses and just sell annuities to eachother. We'll all be rich.
(Alternate plan: real estate licenses and just keep selling our houses to eachother).
Kinda sad in my opinion we need a license from government to do just about anything these days. From selling lemonade to holding a CCL. I read posts daily about those proud CCL holders who has paid their government money to enjoy their constitutional right to bear arms.
Wait till the printing press loses its ability to manufacture false wealth. The entire "service" industry is going to find itself completely broke.
Why americans aren't out demanding the return of their production given away by their government in the name of globalism is a mystery to me. Why we spend trillions on national defense to supposedly defend our borders and everyone else's too but defending our economy and production is decried as protectionism and somehow bad.
Instead they cry for more handouts, more printing and more debt and more lies.
A logical solution to this problem?
Why don't we manufacture robots to replace waiters and bartenders?
/s
Easy to explain:
1) Manufacturing jobs provide the first job. Wages are being pressured there, so they slowly reduce.
2) Service jobs provide the second job, required because the first job does not provide enough wage.
Just wait for the third jobs stats... Then riots.
It's the "Invisible Hand" right?
The "Invisible Hand" performing your proctology exam, trying to pull those "green shoots" out..
Doubles as a Healthcare benefit!!!
All is well, the restaurant industry is manufacturing arteriosclerosis, diabetes, and morbid obesity.
Thank goodness for all the healtcare worker jobs we created this month. Just in time.
the beans came jumping over da fence. happy beans i'll say. livg wage when six families/home. some to send to ma, ha...
Right - a caste system - bailout receivers at the top, bailout payers at the bottom.
It doesn't matter! Waiters are making 45k to 110k per year!
FFS, union dock workers w/out a diploma in Cali are making 150k per year!
The economy is in rapid expansion mode, with people lining up to buy everything & anything whether by cash, credit or or other dorms of debt - or government cheddar!
5% U.S. GDP growth this year easily. 3,000,000 new jobs w/in 11 months.
Quit trying to rain on parade, Tylers.
Wait, are you serious? I need to get me one of them jobs.
https://www.youtube.com/watch?v=yloaBw80fV4
We are all MillionDollarBonus now...
Those blue collar workers (heard that phrase lately?) throughout the 20th century put their little darlings through college and now those little loved ones despise anyone without a piece of paper making a decent wage.
The college degree and PhD has been debased much like the dollar. Too many pieces of paper chasing to little jobs. Those dock workers live in a state with a very high cost of living... not every state has a cost of living like Mississippi. If the Waiters are making 45 - 110 per year, more power to them.
America has sadly forgotten the value of skills and trades as they have been shipped out to foreign nations. Because of the production off shoring the country no longer requires those skills and trades, and it also no longer requires the 'educated' boys and girls either. What's the point in hiring a design engineer if your not going to manufacture anything?
Whether it be dollars or degrees,,, americans need to get away from glorifying useless paper.
I note your sarcasm but this hatefulness for the skills and trades just isn't right.
Just don't use the word Union in your post. Union busting costs Middle Class jobs just like NAFTA. Non union workers will tell you the outcome of the individual bargaining with the Corporation.
No need to union bust. They have busted themselves...down to single digits in the private sector. They are now limited to the only jobs that can't be replaced (I.e. Unloading shit from China). Give it a few more years and robots will do that.
Wierd. No union here. Gainfully employed AND negotiate my pay with my employer.
I was never in a Union either but I see the need.
We have a winner! Most sarcasm in one post award.
This is the real deal! The FED has mangined to jump start this economy. And someone asked the if things are so good then why is the interest at zero? My Answer = who cares....the FED has convinved the world that we are great and they will accept our money printing and zero interest rates. Enjoy this ride, it's awesome. Fed is winning!
yes, don't forget to ignore the velocity of dollars in circulation...
"winning" indeed!
Jump start the economy? That's funny! But you're right...the Fed is winning. Too bad it's at our expense.
Mangined? You mean Yellen has a mangina? Do you have proof......no, please don't share that it's teatime over here.
I "managed" to run up a credit cards with $200k too bad whne they find out I make nothing a year. Goodluck with the FED thing though....
If you can't find a job, the service industry will hire you? OK..that's great...but here's the real problem...
"The main problem is that the headline rate of unemployment excludes other measures of underemployment — in effect, hidden labor-market slack. These worsened during the recession. At the end of last year, almost 9 million people were unemployed. Excluded from that number were 2.3 million more who wanted a job but hadn’t “actively” looked for one in the previous month; also excluded were 6.8 million part-time workers who would have preferred to be working full time." -- http://bloombergview.tumblr.com/post/110251640080/the-fed-shouldnt-get-t...
Is every person buying an iphone declared a bartender? And if she buys an ipad a waiter?
We're a "service enconomy" now, they say..
"'service economy' now"
Which seems to be a polite way of saying "On yer knees and open up, bitches".
Nothing is made in US but .....Cheers!
The US manufactures 90% of the world's bullshit.
Quality, high end bullshit. Best in the world.
Including 64.891% of statistics
That very valuable dollar is made right here in the land of the free!
In case anyone is surprised by this trend, Google "globalization".
Thank god for globalization. Now that we screwed the Chinese by giving them the manufacturing sector, and converted the country to a bartender economy, we will completely dominate the world's Mohito market. As you know, when the Chinese workers finish a days work making cars, trains, airplanes, electronics, and all manner of other products, they will no doubt be thirsty. So when they want a Mohito, they will have to come to us and pay our prices. We will be kind of like OPEC, only with a hangover.
It's Always Sunny in Philadelphia is a documentary about the future.
"Dayman! Fighter of the Nightman! Champion of the sun! You're a master of karate and friendship for everyone!"
https://www.youtube.com/watch?v=TzaVd6zl2bA
Leave me out of this.
And if you bring up the rape scene, I swear I am going to smack you.
I paid the toll, now I want the hole.
I'm a recovering crackhead. This is my retarded sister that I take care of.
Clearly, there is a future in slingin' hash.
Califory is the place ya oughta be!
So we loaded up the truck
and moved to the Olive Garden.
Endless bread that is! Baked ziti....tortellini.
Oh next thing ya know, oh Jed's a manager
With 60 hours a week, 27K a year
His degree is a useless paper piece!
And his student loans saw an interest rate increase!
Well-played..!! I needed a good chuckle on another day of the market melting back up.
I need another gramme of soma
It's one of those that just popped out. I'll take some soma too...
Those numbers are easy to explain. Unemployed construction workers have obviously taken jobs as waiters. /s
I don't think so. Most of the waiters I encounter speak English.
We don’t produce anything but more dollars. The American need to drink and eat more to drown out their sorrows. Someone has to serve them I guess. An economy that doesn’t produce real tangible goods cannot thrive or last in the long haul. The dollar will be rejected at some point. Everyone will lose confidence it. It will then of course go back to its real value which is 0 (well almost zero, cotton and ink isn’t free).
We need to spread awareness of real money. Silver and gold will rise above the ashes of the collapse and hold their value over time. That’s why I started giving these candles to people: https://www.etsy.com/shop/ScentSavers?ref=hdr_shop_menu
They love the candle while it’s burning. And when it’s gone it leave them with a valuable lesson on real money. They will know what silver is worth!
Hi Kevin...sorry to see you haven't had any sales this week. The good news is with only three sold, you'll have plenty to "give to people".
With all that drinking, we're lucky these people are not near manufacturing sites. How dangerous would THAT be? This has to be a positive.
If you read the fine print,you would see that those 35k waiter jobs,are actually 35k people waiting for a job..
Something amiss ... bartenders and waiters make the vast majority of income from tips, bringing income (some, ahem, unreported) to the $50,00 - much more reange. Of course, they won't tell you, if they even count what they spend at the bar after work, since much is in cash.
I have a big question. The number of waitresses and bartenders keeps going up, but the sales of restaurants and bars is not rising concurrently.
Is this still the shift of people being converted from 40 hour full time to 29 hour full time. That would requre an increased 33% workers just to match the hours worked.
And meanwhile, the push to move to a truly territorial system of corporate income taxation proceeds apace.
We need to retrain our factory workers to make them more employable. Teach them Mandarin Chinese. Then they can follow their jobs. Maybe Bain Capital can spring for the airfare.
Soon, most A's will be work'n for the man from the Orient.
Learn some Mandarin and you may get a raise in pay.
Dont forget about these new hires.
http://wolfstreet.com/2015/02/05/the-search-for-cheap-labor-in-tech-behi...
this list should be adjusted by the designation of hamburger flippers in the manufacturing sector instead of the service sector.
I guess they are counting that very successful open air hamburger chain with the outstanding market gains - you want flies with that
Seasonaly adjusted ofcourse
I can't wait to be a waiter...The American creed....
Go from dishwasher to waiter. Sí su puedo!
If you have to wait for the waiter then you are the waiter.
I think we're looking at the numbers all wrong. If you're manufacturing a cheeseburger that is both a manufacturing job and a service job.
We obviously need to bring in another 20 million beaners and also ramp up these H1B visa applcants.
The difference between BLS and BS is pretty small too.
I just can't eat and drink enough to keep that many waitresses busy.
Has the quantity of manufactured goods gone up - even though total employment is down?
Yes --
If you are able to produce the same or more with less labor that use to be considered INCREASING PRODUCTIVITY.
Increases in productivity was required to increase standard of living.
Go ahead and make my day by slamming me with down arrows - but how can so many people think increasing productivity is a bad thing?
you are right, the quantity of manufactured goods has gone up...in china, vietnam, roumania, brazil etc.
we are all global citizens, so where's the beef? i bet the number of barman and waiters has gone down in those countries...oh wait....maybe not :)
LOL!
"Who needs to produce anything, that is so 1990's"
Exactly!
The Federal Reserve can print the money we need to buy US treasuries (debt). Americans can collect disability, welare, food stamps and/or trade stocks to buy Chinese, Korean, German and Japanese goods.
Manufacturing is so yesterday.
anyone talking about the dollar increasing by 2% today? I am sure all those exporters love that
If the number of Barman and Waiters has gone up it means that most of Americans have more Money in their Pockets to spend by going out to eat and drink. Why is that good news bad? It tells me that you have a recovery, People going out, spending Money. The only thing that they will need to work on is to get them all going back to Shops and to buy useless crap. Why have only one of an item, when you could have 2 or 3 more of the same, just in case and those helping a poor worker in China make a few extra cents.
Finally!
As an amatuer, failed entrepeneur, I have alway said that you cannot have a "service" economy.
You have to have something to service!
This is now being recognised by all of us on here and by other commentators.
This is why China and Germany do so well. They actually make stuff the world wants. Weather its cheap stuff or high quality.