On Friday, we learned that the official “unemployment rate” has fallen to 5.5 percent. Since an unemployment rate of 5 percent is considered to be “full employment” by many economists, many in the mainstream media took this as a sign that the U.S. economy has almost fully “recovered” since the last recession. In fact, according to the Wall Street Journal, some Federal Reserve officials believe that “the U.S. economy is already at full employment“. But how can this possibly be? It certainly does not square with reality. Personally, I know people that have been struggling with unemployment for years and that still cannot find a decent job. And I get emails from readers all the time that are heartbroken because they are suffering through extended periods of unemployment. So what in the world is going on? How can the government be telling us that we are nearly at “full employment” when so many people can’t find work? Could it be possible that the government numbers are misleading?
It is my contention that the official “unemployment rate” has become so politicized and so manipulated that it is essentially meaningless at this point. The following are 10 reasons why…
#1 Since February 2008, the size of the U.S. population has grown by 16.8 million people, but the number of full-time jobs has actually decreased by 140,000.
#2 The percentage of working age Americans that have a job right now is still about the same as it was during the depths of the last recession. Posted below is a chart that shows how the employment-population ratio has changed since the beginning of the decade. Does this look like a full-blown “employment recovery” to you?…
#3 The primary reason for the decline in the official “unemployment rate” is the fact that the government now considers millions upon millions of long-term unemployed workers to “no longer be in the labor force”. Just check out the following numbers…
The number of Americans participating in the labor force has been on a decline for the past few years. Nearly 33 percent of the Americans above age 16 are not part of the workforce, the highest number since 1978. The Bureau of Labor Statistics (BLS) report issued recently has found 92,898,000 Americans above age 16 not a part of the labor force of the country as on February 2015.
When President Obama took over the office in January 2009, nearly 80,529,000 Americans were not a part of the labor force. The number has increase by nearly 12 million over the last few years.
#4 Over the past couple of years, the labor force participation rate in this country has been hovering near mutli-decade lows…
The labor force participation rate hovered between 62.9 percent and 62.7 percent in the eleven months from April 2014 through February, and has been 62.9 percent or lower in 13 of the 17 months since October 2013.
Prior to that, the last time the rate was below 63 percent was 37 years ago, in March 1978 when it was 62.8 percent, the same rate it was in February.
#5 When you add the number of “officially unemployed” Americans (8.7 million) to the number of Americans “not in the labor force” (92.9 million), you get a grand total of 101.6 million working age Americans that do not have a job right now. Does that sound like “full employment” to you?
#6 The quality of our jobs continues to decline. Right now, only 44 percent of U.S. adults are employed for 30 or more hours each week.
#7 Millions upon millions of Americans have been forced to take part-time jobs because that is all they can find, and wages for American workers are at depressingly low levels. The following numbers come directly from the Social Security Administration…
-39 percent of American workers make less than $20,000 a year.
-52 percent of American workers make less than $30,000 a year.
-63 percent of American workers make less than $40,000 a year.
-72 percent of American workers make less than $50,000 a year.
#8 The average duration of unemployment for an unemployed worker is still about twice as long as it was just prior to the last recession.
#9 Most Americans feel as though the Obama administration has done little to nothing to help the middle class. Just consider the following poll numbers…
According to a new poll by the Pew Research Center, Americans see government policies under the Obama administration as having mostly benefited wealthy people, large corporations and financial institutions.
Seventy-two percent of respondents said government policies have done little or nothing to help the middle class, and 65 percent said they have done nothing to help the poor. Sixty-eight percent said the policies have done nothing to help small businesses.
Meanwhile, 45 percent said the policies have done a “great deal” to help large banks and financial institutions, 38 percent say they have helped large corporations, and 36 percent say they have helped the wealthy.
#10 If the unemployment rate was calculated honestly, we would all be talking about the horrific “unemployment crisis” that we were currently enduring. According to John Williams of shadowstats.com, the real unemployment rate in the United States right now is above 23 percent.
Our politicians and the mainstream media are attempting to convince us that everything is just fine.
But what they are telling us simply does not match the cold, hard reality on the streets.
And since the talking heads on television are proclaiming that we are nearly at “full employment”, that just makes millions upon millions of Americans that can’t seem to find work no matter how hard they try feel even worse than they already do.
If jobs are “easy to get”, then those that are chronically unemployment must have “something wrong” with them. That is the message that we are being given. If the mainstream media says that unemployment has gone way down, then anyone that is still unemployed must be really “lazy”, right?
When you are unemployed for an extended period of time, it can really suck the life right out of you. It can be really tempting to believe that you are viewed as a failure by your family and friends. And for the government to lie to us like this just makes things even harder.
If you are unemployed and can’t find a job right now, I want you to understand that you are caught in the midst of a long-term downward economic spiral which is going to get a lot worse.
When the government tells you that we are in a “recovery”, they are lying to you.
And when the government tells you that things are about to get a lot better, they are lying to you.
Everyone has times in their lives when they get knocked down.
The key is to always get back up and to never, ever stop fighting.
Yes, we are facing some really hard economic times. But that does not mean that your life is over. Never give up, and never give in to fear. Just do what you can with what you have today, and tomorrow get up and fight with everything that you have got.
The truth is that the best chapters of your life could be just around the corner.
Just don’t sit back and wait for the government to save you. If you are waiting for the government to save you, then you are going to be deeply disappointed.
If you are fortunate enough to have a job in America today, the phrase “just over broke” probably describes you. Yes, there are a handful of jobs that certainly pay very well, but most Americans that work for somebody else are just barely making it from month to month. More than half of all working Americans are living paycheck to paycheck, and more than half of all working Americans make less than $30,000 a year. That is an amazing statistic but it is actually true. Once upon a time, anyone that was responsible and that was willing to work hard could get a good job in America. But now those days are long gone. Instead, we live at a time when good jobs are disappearing and when the middle class is getting smaller with each passing year. In some homes, the husband and the wife are both working multiple jobs and they can still barely pay their bills. Something has gone horribly wrong, and yet our leaders just keep telling us how wonderful our economy is.
One of the biggest things that has killed jobs in this country is the fact that the U.S. economy has been steadily merged into the emerging one world economic system over the past several decades. They call it “free trade”, but they never told us that we would be merged into a single global labor pool where we would be competing directly for jobs with workers on the other side of the planet that live in nations where it is legal to pay slave labor wages.
According to Gallup, only about 1.3 billion people around the world work full-time for an employer at this point.
But overall there are more than 7 billion people.
That means that there are a whole lot of really poor, really desperate people that need to be employed.
This has been wonderful for the big corporations. They can just take jobs away from American workers and give them to people who are willing to work for less than a tenth of what an American worker would make. This has resulted in the systematic deindustrialization of the United States and horrific decline in dozens of formerly great manufacturing cities.
At the same time, we have also been losing millions of middle class jobs to technology. At this point, robots are even starting to replace warehouse workers and fast food employees. As robots become even more advanced and become even cheaper to produce, there will be less jobs available for the rest of us.
And what happens when robots can do everything better than us?
Because there are fewer middle class jobs available, the competition for the remaining jobs has become incredibly intense. In recent years, millions of Americans have been forced to take just about anything that they can get. For those Americans, “just over broke” has become “just trying to survive” as they scratch and claw their way through life.
A recent CNBC article profiled one such individual. His name is Ken Bowman, and his job at a guitar shop just barely enables him to pay his rent and feed himself…
Ken Bowman joins the line for a free lunch in the Youngstown Salvation Army canteen, just like he does every Friday.
Looking younger than his 21 years, his hair dyed jet black and wearing big, battered boots, Bowman plays heavy metal on his cell phone. He chooses a seat at the end of a table and sits hunched over his tray, his blues eyes furtively sweeping the room. The others sit in packs, regulars who’ve formed lunchtime friendships over their burnt coffee and peppered corn, discussing the jobs they once had and the government benefits they no longer get.
Bowman is sensitive to the stigma of accepting handouts like lunch. “[It] doesn’t mean you’re homeless or poor, people have standards but they struggle,” he said, his chin jutting out, his eyes glowering.
After paying his rent, Bowman says his job in a guitar shop leaves him with $50 a month to live on — if he can get shifts. He is one of America’s “underemployed,” a group of as many as 11 million Americans struggling to survive in society’s shadows on wages that put them below the federal poverty line.
There are millions of others out there just like Bowman. In fact, as I mentioned in a previous article, one out of every four part-time workers in America is living below the poverty line. The “working poor” is a phrase that describes a very large segment of the U.S. population today.
And the cold, hard truth of the matter is that most of the country is steadily getting poorer. According to a study recently discussed in the New York Times, the “typical American household” is now worth 36 percent less than it was worth a decade ago. That is a staggering decline in just ten years.
Meanwhile, the cost of living continues to rise. This is something that I have discussed repeatedly, but sometimes a picture can say things far better than any words can.
The photo posted below has been floating around on Twitter. It is of a McDonald’s menu from the 1960s. As you can see, prices have gone up a little bit since then…
Most people think that I am crazy when I tell them that I can remember a cup of coffee being sold for a quarter when I was young. But it is true. Over the long-term, our purchasing power has been systematically destroyed by the insane polices of the Federal Reserve.
Sadly, most Americans don’t understand any of this. They just trust that our leaders actually know what they are doing. Meanwhile, they just keep on struggling to survive in an economic system that is stacked against them.
According to one recent study, 40 percent of all households in the United States are experiencing financial stress right now and the homeownership rate for Americans under the age of 35 is at an all-time low.
In the old days, if you got your education, worked hard and did all the right things, it was just about an automatic ticket to the middle class.
Today it doesn’t work like that.
Instead, more Americans than ever are being forced to become dependent on the government. If you can believe it, Americans received more than 2 trillion dollars in benefits from the federal government last year alone.
So it astounds me whenever I hear anyone say that the economy is in “good shape”.
How can it be in “good shape” when one out of every three adults in the United States has an unpaid debt that is “in collections” and there are 49 million Americans that are dealing with food insecurity?
The truth is that we are in the midst of a long-term economic decline that is the result of decades of incredibly foolish decisions.
Until the American people start understanding what has happened to us, they are never going to demand real change that actually accomplishes something.
There are already more than 101 million working age Americans that are not employed and 20 percent of the families in the entire country do not have a single member that has a job. So what in the world are we going to do when robots start taking millions upon millions more of our jobs? Thanks to technology, the balance of power between employers and workers in this country is shifting dramatically in favor of the employers. These days, many employers are wondering why they are dealing with so many human worker “headaches” when they can just use technology to get the same tasks done instead. When you replace a human worker with a robot, you solve a whole bunch of problems. Robots never take a day off, they never get tired, they never get sick, they never complain, they never show up late, they never waste time on the Internet and they always do what you tell them to do. In addition, robotic technology has advanced to the point where it is actually cheaper to buy robots than it is to hire humans for a vast variety of different tasks. From the standpoint of societal efficiency, this is a good thing. But what happens when robots are able to do just about everything less expensively and more efficiently than humans can? Where will our jobs come from?
And this is not something that is coming at some point in “the future”.
This is already happening.
According to CNN, there will be 10,000 robots working to fulfill customer orders in Amazon.com warehouses by the end of 2014…
Amazon will be using 10,000 robots in its warehouses by the end of the year.
CEO Jeff Bezos told investors at a shareholder meeting Wednesday that he expects to significantly increase the number of robots used to fulfill customer orders.
Don’t get me wrong – I absolutely love Amazon. And if robots can get me my stuff faster and less expensively that sounds great.
But what if everyone starts using these kinds of robots?
What will that do to warehouse jobs?
PC World has just done a report on a new warehouse robot known as “UBR-1″. This robot is intended to perform tasks “normally done by human workers”…
The UBR-1 is a 4-foot tall, one-armed robot that could make warehouses and factories more efficient by performing tasks normally done by human workers.
Unlike the industrial robots widely used in manufacturing today—usually large machines isolated from people for safety reasons—this robot can work alongside humans or autonomously in a workspace filled with people.
This little robot costs $50,000, and it can work all day and all night. It just needs a battery change every once in a while. The creators of this robot envision it performing a vast array of different tasks…
“We see the robot as doing tasks, they could be dull, they could be dirty, they could be dangerous and doing them repetitively all day in a light manufacturing environment,” said Melonee Wise, Unbounded Robotics CEO and co-founder. Those tasks include stocking shelves, picking up objects and assembling parts.
The UBR-1 isn’t designed for small component assembly, but it can manipulate objects as small as dice or a Lego piece, Wise said. Unbounded Robotics is targeting companies that want some automation to speed up their manufacturing process, but can’t afford to fully automate their businesses.
To many people this may sound very exciting.
But what if a robot like that took your job?
Would it be exciting then?
Of course you can’t outlaw robots. And you can’t force companies to hire human workers.
But we could potentially have major problems in our society as jobs at the low end of the wage scale quickly disappear.
According to CNN, restaurants all over the nation are going to automated service, and a recent University of Oxford study concluded that there is a 92 percent chance that most fast food jobs will be automated in the coming years…
Panera Bread is the latest chain to introduce automated service, announcing last month that it plans to bring self-service ordering kiosks as well as a mobile ordering option to all its locations within the next three years. The news follows moves from Chili’s and Applebee’s to place tablets on their tables, allowing diners to order and pay without interacting with human wait staff at all.
Panera, which spent $42 million developing its new system, claims it isn’t planning any job cuts as a result of the technology, but some analysts see this kind of shift as unavoidable for the industry.
In a widely cited paper released last year, University of Oxford researchers estimated that there is a 92% chance that fast-food preparation and serving will be automated in the coming decades.
It is being projected that other types of jobs will soon be automated as well…
Delivery drivers could be replaced en masse by self-driving cars, which are likely to hit the market within a decade or two, or even drones. In food preparation, there are start-ups offering robots for bartending and gourmet hamburger preparation. A food processing company in Spain now uses robots to inspect heads of lettuce on a conveyor belt, throwing out those that don’t meet company standards, the Oxford researchers report.
Could you imagine such a world?
When self-driving vehicles take over, what will happen to the 3.1 million Americans that drive trucks for a living?
Our planet is changing at a pace that is almost inconceivable.
Over the past decade, the big threat to our jobs has been workers on the other side of the globe that live in countries where it is legal to pay slave labor wages.
But now even those workers are having their jobs taken away by robots. For example, just check out what is happening in China…
Foxconn has been planning to buy 1 million robots to replace human workers and it looks like that change, albeit gradual, is about to start.
The company is allegedly paying $25,000 per robot – about three times a worker’s average salary – and they will replace humans in assembly tasks. The plans have been in place for a while – I spoke to Foxconn reps about this a year ago – and it makes perfect sense. Humans are messy, they want more money, and having a half-a-million of them in one factory is a recipe for unrest. But what happens after the halls are clear of careful young men and women and instead full of whirring robots?
Perhaps you think that your job could never be affected because you do something that requires a “human touch” like caring for the elderly.
Well, according to Reuters, robots are moving into that arena as well…
Imagine you’re 85, and living alone. Your children are halfway across the country, and you’re widowed. You have a live-in aide – but it’s not human. Your personal robot reminds you to take your medicine, monitors your diet and exercise, plays games with you, and even helps you connect with family members on the Internet.
And robots are even threatening extremely skilled professions such as doctors. For instance, just check out this excerpt from a Bloomberg article entitled “Doctor Robot Will See You Shortly“…
Johnson & Johnson proposes to replace anesthesiologists during simple procedures such as colonoscopies — not with nurse practitioners, but with machines. Sedasys, which dispenses propofol and monitors a patient automatically, was recently approved for use in healthy adult patients who have no particular risk of complications. Johnson & Johnson will lease the machines to doctor’s offices for $150 per procedure — cleverly set well below the $600 to $2,000 that anesthesiologists usually charge.
And this is just the beginning. In a previous article, I discussed the groundbreaking study by Dr. Carl Frey and Dr. Michael Osborne of Oxford University which came to the conclusion that 47 percent of all U.S. jobs could be automated within the next 20 years.
That is crazy.
What will the middle class do as their jobs are taken away?
The world that we live in is becoming a radically different place than the one that we grew up in.
The robots are coming, and they are going to take millions of our jobs.
So what do you think of this robot invasion? Please feel free to share your thoughts by posting a comment below…
That headline is not a misprint. The number of working age Americans that do not have a job has increased by nearly 10 million since Barack Obama first entered the White House. In January 2009, the number of “officially unemployed” workers plus the number of Americans “not in the labor force” was sitting at a grand total of 92.6 million. Today, that number has risen to 102.2 million. That means that the number of working age Americans that are not working has grown by close to 10 million since Barack Obama first took office. So why does the “official unemployment rate” keep going down? Well, it is because the federal government has been pretending that millions upon millions of unemployed workers have “left the labor force” over the past few years and do not want to work anymore. The government says that another 347,000 workers “left the labor force” in December. That is nearly five times larger than the 74,000 jobs that were “created” by the U.S. economy last month. And it is important to note that more than half of those jobs were temporary jobs, and it takes well over 100,000 new jobs just to keep up with population growth each month. So the unemployment rate should not have gone down. If anything, it should have gone up.
In fact, if the federal government was using an honest labor force participation rate, the official unemployment rate would be far higher than it is right now. Instead of 6.7 percent, it would be 11.5 percent, and it has stayed at about that level since the end of the last recession.
But “6.7 percent” makes Obama look so much better than “11.5 percent”, don’t you think?
The labor force participation rate is now at a 35 year low, and the only way that the federal government has been able to get the “unemployment rate” to go down is by removing hundreds of thousands of Americans out of the labor force every month.
Why don’t they just get it over with and announce that they have decided that all workers immediately leave the labor force the moment that they lose their jobs? That way we could have an unemployment rate of “0.0 percent” and Obama could be hailed as a great economic savior.
Of course the truth is that the employment crisis in the United States is about as bad now as it was during the depths of the last recession.
If you want a much more accurate reading of the employment picture in America, just look at the employment-population ratio. The percentage of working age Americans that actually have a job continues to stagnate at an extremely low level. In fact, the percentage of working age Americans that are employed has stayed between 58.2 percent and 58.8 percent for 52 months in a row…
Does that look like an “employment recovery” to you?
Because no matter how hard I squint my eyes, I just can’t see it.
The percentage of Americans that actually have jobs should have bounced back at least a little bit by now.
But it has not happened.
And guess what? Most people don’t know this, but the U.S. economy actually created fewer jobs in 2013 than it did in 2012. So the momentum of job creation is actually going the wrong way.
No matter how rosy the mainstream media makes things out to be, the reality on the ground tells an entirely different story.
For example, just check out the desperation that was displayed on the streets of New York City last week…
The line wrapped nearly around an entire city block on Friday as approximately 1,500 people waited in Queens for a chance to apply for a coveted union job as painters or blasters on bridges and steel structures.
The first few people on line had been there since 1 p.m. on Tuesday when the temperature in New York City was in the single digits.
The job that those desperate workers wanted to apply for only pays $17.20 an hour.
Of course that is far from an isolated incident. Last week, I wrote about how 1,600 workers recently applied for just 36 jobs at an ice cream plant in Maryland.
We would not be witnessing scenes like these if the unemployment rate in America was really just 6.7 percent.
An article by Phoenix Capital Research does a good job of summarizing how useless the official government numbers have become…
Since 2009, we’ve been told that things have improved. The fact of the matter is that the improvement has been largely due to accounting tricks rather than any real change in reality.
Sure you can make unemployment look better by not counting people, you can claim the economy is growing by ignoring inflation, you can argue that inflation is low because you don’t count food or energy, but the reality is that all of these arguments are grade “A” BS.
We are now five years into the “recovery.” The single and I mean SINGLE accomplishment from spending over $3 trillion has been the stock market going higher. This is a complete and total failure. Based on the business cycle alone, the economy should be roaring.
What does it say that we’ve spent this much money and accomplished so little?
The word is FAILURE.
The media is lying about the economy. They have been for years. Even the BLS now admits that its methodologies are either inefficient (read: DON’T work) or outright wrong.
The cold, hard reality of the matter is that there has not been an economic recovery in this nation.
Anyone that tries to tell you that is lying to you.
And now the next major wave of the economic collapse is rapidly approaching.
The U.S. national debt is on pace to more than double during the eight years of the Obama administration and the Federal Reserve has been recklessly printing up trillions of dollars. The long-term damage that they have done to our economy is incalculable. But despite all of those extraordinary “stimulus” measures, the percentage of Americans that are actually working has not budged.
If we were going to have a recovery, it would have happened by this point. In fact, this is all the “recovery” that we are going to experience.
From here on out, this is about as good as things are going to get. As bad as you may think things are now, the truth is that this is rip-roaring prosperity compared to what is coming.
I hope that you are getting prepared.
If you think that the latest employment numbers are good news, you might want to look again. In April 2013, 58.6 percent of all working age Americans had a job. But three years ago, in April 2010, 58.7 percent of all working age Americans had a job. Well, you may argue, that is not much of a difference. And that is precisely my point. The percentage of Americans that have a job fell like a rock during the last recession. It dropped from about 63 percent all the way down to below 59 percent, and it has stayed below 59 percent for 44 months in a row. So where is the recovery? This is the first time in the post-World War II era that the employment-population ratio has not bounced back after the end of a recession. So anyone that tells you that we are experiencing an employment recovery is lying to you. Yes, the U.S. economy added 165,000 jobs last month. But it takes nearly that many jobs just to keep up with population growth. The truth is that we are just treading water.
So why has the unemployment rate been going down? Well, it is because the government has been pretending that millions upon millions of unemployed Americans “don’t want jobs” anymore. In fact, an astounding 9.5 million Americans have “left the workforce” since Barack Obama took office.
Some in the mainstream media have started calling them “missing workers”. But whatever label you want to use, the reality of the matter is that they are really hurting. They are part of the reason why food stamp enrollment has soared from 32 million to more than 47 million while Barack Obama has been in the White House.
If you still believe that the employment market is getting better, just look at the following numbers. The percentage of working age Americans with a job has been sitting at about the same level for four years in a row…
April 2008: 62.7 percent
April 2009: 59.8 percent
April 2010: 58.7 percent
April 2011: 58.4 percent
April 2012: 58.5 percent
April 2013: 58.6 percent
So why is everyone getting so excited over the latest numbers? When you step back and look at what has happened to the employment-population ratio over the past decade it really is quite horrifying…
So exactly what part of that chart are we supposed to get excited about?
Yes, I suppose that we should be thankful that the percentage of Americans with a job has not continued to decline over the past few years. Unfortunately, the next major wave of the economic collapse is rapidly approaching and that is going to make our employment crisis far worse.
A recovery was supposed to already happen by now. Now we are running out of time before the next major downturn strikes.
And things have been particularly hard for our young people. Even if our young people do go to college, there is a very good chance that good jobs will not be waiting for them once they graduate.
According to Accenture’s 2013 College Graduate Employment Survey, 41 percent of all Millennials who graduated from college during the past two years are working in jobs that actually do not require a college degree.
And a different survey conducted a while back found that 53 percent of all college graduates under the age of 25 are either unemployed or underemployed.
Perhaps you have noticed this. Perhaps you have noticed that there seems to be large numbers of young people that are living with their parents or that can’t seem to get their lives started.
It is because the economy is not producing enough jobs for them.
We have shipped millions of good jobs overseas, we have replaced millions of jobs with technology, and we have created an economic environment that is murdering our small businesses.
Sadly, the future does not look bright for the American worker. The big corporations that dominate our society are feverishly trying to increase profits by getting rid of as many “expensive” American workers as possible. That is one of the reasons why corporate profits as a percentage of GDP are at a record high, but wages as a percentage of GDP are at an all-time low.
At this point there are more than 101 million working age Americans that do not have a job, and that number is going to go a lot higher in the years ahead.
But the financial markets seem to be absolutely thrilled with the present state of affairs. The latest employment numbers caused the Dow to shoot past 15,000 and the S&P 500 to push past 1600.
Of course stocks have become completely and totally divorced from economic reality, but this does happen from time to time and it never lasts forever. At some point there will be a rude awakening.
And I anticipated that we could potentially see the Dow hit 15,000 before it finally crashed. Back in February, I made the following statement…
Right now, everyone seems to be quite giddy about the fact that the Dow is marching toward an all-time high. And I actually do believe that the Dow will blow right past it. In fact, it is even possible that we could see the Dow hit 15,000 before everything starts falling apart.
Well, now we have seen the Dow hit 15,000. But that doesn’t change any of the long-term trends that are absolutely eviscerating our economy.
So enjoy this bubble of false hope while you can.
It will not last much longer.
The mainstream media covered the inauguration of Barack Obama with breathless anticipation on Monday, but should we really be celebrating another four years of Obama? The truth is that the first four years of Obama were an absolute train wreck for the U.S. economy. Over the past four years, the percentage of working age Americans with a job has fallen, median household income has declined by more than $4000, poverty in the U.S. has absolutely exploded and our national debt has ballooned to ridiculous proportions. Of course all of the blame for the nightmarish performance of the economy should not go to Obama alone. Certainly much of what we are experiencing today is the direct result of decades of very foolish decisions by Congress and previous presidential administrations. And of course the Federal Reserve has more influence over the economy than anyone else does. But Barack Obama steadfastly refuses to criticize anything that the Federal Reserve has done and he even nominated Ben Bernanke for another term as Fed Chairman despite his horrific track record of failure, so at a minimum Barack Obama must be considered to be complicit in the Fed’s very foolish policies. Despite what the Obama administration tells us, the U.S. economy has been in decline for a very long time, and that decline has accelerated in many ways over the past four years. Just consider the statistics that I have compiled below. The following are 37 statistics which show how four years of Obama have wrecked the U.S. economy…
1. During Obama’s first term, the number of Americans on food stamps increased by an average of about 11,000 per day.
2. At the beginning of the Obama era, 32 million Americans were on food stamps. Today, more than 47 million Americans are on food stamps.
3. According to one calculation, the number of Americans on food stamps now exceeds the combined populations of “Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Iowa, Kansas, Maine, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Utah, Vermont, West Virginia, and Wyoming.”
4. The number of Americans receiving money directly from the federal government each month has grown from 94 million in the year 2000 to more than 128 million today.
5. According to the U.S. Census Bureau, more than 146 million Americans are either “poor” or “low income” at this point.
6. The unemployment rate in the United States is exactly where it was (7.8 percent) when Barack Obama first entered the White House in January 2009.
7. When Barack Obama first entered the White House, 60.6 percent of all working age Americans had a job. Today, only 58.6 percent of all working age Americans have a job.
8. During the first four years of Obama, the number of Americans “not in the labor force” soared by an astounding 8,332,000. That far exceeds any previous four year total.
9. During Obama’s first term, the number of Americans collecting federal disability insurance rose by more than 18 percent.
10. The Obama years have been absolutely devastating for small businesses in America. According to economist Tim Kane, the following is how the number of startup jobs per 1000 Americans breaks down by presidential administration…
Bush Sr.: 11.3
Bush Jr.: 10.8
11. Median household income in America has fallen for four consecutive years. Overall, it has declined by over $4000 during that time span.
12. The economy is not producing nearly enough jobs for the hordes of young people now entering the workforce. Approximately 53 percent of all U.S. college graduates under the age of 25 were either unemployed or underemployed in 2011.
13. According to a report from the National Employment Law Project, 58 percent of the jobs that have been created since the end of the recession have been low paying jobs.
14. Back in 2007, about 28 percent of all working families were considered to be among “the working poor”. Today, that number is up to 32 percent even though our politicians tell us that the economy is supposedly recovering.
15. According to the Center for Economic and Policy Research, only 24.6 percent of all of the jobs in the United States are “good jobs” at this point.
16. According to the U.S. Census Bureau, the middle class is taking home a smaller share of the overall income pie than has ever been recorded before.
17. According to the Economic Policy Institute, the United States is losing half a million jobs to China every single year.
18. The United States has fallen in the global economic competitiveness rankings compiled by the World Economic Forum for four years in a row.
19. According to the World Bank, U.S. GDP accounted for 31.8 percent of all global economic activity in 2001. That number declined steadily over the course of the next decade and was only at 21.6 percent in 2011.
20. The United States actually has plenty of oil and we should not have to import oil from the Middle East. We need to drill for more oil, but Obama has been very hesitant to do that. Under Bill Clinton, the number of drilling permits approved rose by 58 percent. Under George W. Bush, the number of drilling permits approved rose by 116 percent. Under Barack Obama, the number of drilling permits approved actually decreased by 36 percent.
21. When Barack Obama took office, the average price of a gallon of gasoline was $1.84. Today, the average price of a gallon of gasoline is $3.26.
22. Under Barack Obama, the United States has lost more than 300,000 education jobs.
23. For the first time ever, more than a million public school students in the United States are homeless. That number has risen by 57 percent since the 2006-2007 school year.
24. Families that have a head of household under the age of 30 now have a poverty rate of 37 percent.
25. More than three times as many new homes were sold in the United States in 2005 as were sold in 2012.
26. Electricity bills in the United States have risen faster than the overall rate of inflation for five years in a row.
27. Health insurance costs have risen by 29 percent since Barack Obama became president.
28. Today, 77 percent of all Americans live paycheck to paycheck at least part of the time.
29. It is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.
30. The total amount of money that the federal government gives directly to the American people has grown by 32 percent since Barack Obama became president.
31. The Obama administration has been spending money on some of the most insane things imaginable. For example, in 2011 the Obama administration spent $592,527 on a study that sought to figure out once and for all why chimpanzees throw poop.
32. U.S. taxpayers spend more than 20 times as much on the Obamas as British taxpayers spend on the royal family.
33. The U.S. government has run a budget deficit of well over a trillion dollars every single year under Barack Obama.
34. When Barack Obama was first elected, the U.S. debt to GDP ratio was under 70 percent. Today, it is up to 103 percent.
35. During Obama’s first term, the federal government accumulated more debt than it did under the first 42 U.S presidents combined.
36. As I wrote about yesterday, when you break it down the amount of new debt accumulated by the U.S. government during Obama’s first term comes to approximately $50,521 for every single household in the United States. Are you ready to contribute your share?
37. If you started paying off just the new debt that the U.S. has accumulated during the Obama administration at the rate of one dollar per second, it would take more than 184,000 years to pay it off.
But despite all of these numbers, the mainstream media and the left just continue to shower Barack Obama with worship and praise. Newsweek recently heralded Obama’s second term as “The Second Coming“, and at Obama’s pre-inauguration church service Reverand Ronald Braxton openly compared Obama to Moses…
At Metropolitan African Methodist Episcopal Church, Braxton reportedly crafted his speech around Obama’s personal political slogan: “Forward!”
Obama, said Braxton, was just like Moses facing the Red Sea: “forward is the only option … The people couldn’t turn around. The only thing that they could do was to go forward.” Obama, said Braxton, would have to overcome all obstacles – like opposition from Republicans, presumably, or the bounds of the Constitution. Braxton continued, “Mr. President, stand on the rock,” citing to Moses standing on Mount Horeb as his people camped outside the land of Israel.
But it wasn’t enough to compare Obama with the founder of Judaism and the prophet of the Bible. Braxton added that Obama’s opponents were like the Biblical enemies of Moses, and that Obama would have to enter the battle because “sometimes enemies insist on doing it the hard way.”
So what do you think the next four years of Obama will bring?
Please feel free to post a comment with your thoughts below…
There was a time in America when virtually anyone that wanted a job could go out and get one and the United States boasted the largest and most prosperous middle class in the history of the world. Sadly, those days are long gone. Back in 1969, 95 percent of all men between the ages of 25 and 54 had a job. But now there are millions of Americans in their prime working years that cannot find a job. Millions of others are working low wage jobs or part-time jobs because that is all they can get. The other day I went to a large retail store and I got into a conversation with the lady who was checking me out. She said that she had worked professional jobs all her life, and that she had taken this job to tide her over as she searched for a new job, but now she had been there for two years with no end in sight. I felt really bad for her, because she was obviously a sharp lady with a lot of skills. But this is the new reality. Good paying manufacturing and professional jobs are being replaced by low paying service jobs. We are transitioning from an economy with plenty of good jobs to an economy with plenty of bad jobs. The next stage in our transition will be to an economy where it seems like there are no jobs for anyone. We are witnessing the tragic downfall of the American worker, and it is heartbreaking.
Many of our politicians insist that things are getting better for American workers, but that is simply not true. Just look at the chart below. Back at the start of 2008, the percentage of working age Americans with a job was sitting at about 63 percent. Since then it has fallen below 59 percent and it has stayed there for over 3 years. After every other recession in the post-World War II era the employment-population ratio has always bounced back. That has not happened this time…
If this number was going to recover, it would have done so by now. We are rapidly approaching the next major economic crisis and the percentage of working age Americans with a job is going to go even lower.
And our politicians are certainly not helping matters. Many of the things that they have done are actually going to accelerate the loss of good jobs. For example, as one small business owner recently pointed out, Obamacare is going to force businesses all over the United States to minimize the number of full-time workers they are using and replace them with part-time workers…
Here is what I am doing for the rest of the year — working with every manager in my company so that as of January 1, 2013, none of our employees are working more than 28 hours a week. I think most readers know the reason — we have got to get our company under 50 full time employees or else I am facing a bill from Obamacare in 2014 that will be several times larger than my annual profit. I love my workers. They make me a success. But most of my competitors are small businesses that are exempt from the Obamacare hammer. To compete, I must make sure my company is exempt as well. This means that our 400+ full time employees will have to be less than 50 in 2013, so that when the Feds look at me at the start of 2014, I am exempt. We will have more employees working fewer hours, with more training costs, but the Obamacare bill looks like about $800,000 a year for us, at least, and I am pretty sure the cost of more training will be less than that.
This will be unpopular but tolerable to most of my employees. The vast majority of them are retired and our company is merely an excuse to stay busy, work outdoors, and get a little extra money.
But this is going to be an ENORMOUS change in the rest of the service sector. I have talked to a lot of owners of restaurants and restaurant chains, and the 40-hour work week is a thing of the past in that business. One of my employees said that in Hawaii, it was all the hotel employees could talk about. Many chains are working on mutli-team systems where two teams of people working part-time replace the former group of full-time employees. 2013 is going to see a lot of people (who are not paid very well to begin with) getting their hours and pay cut by 25%. At the same time that they are required, likely for the first time since many are relatively young, to purchase health insurance.
How could we be so foolish?
Unfortunately, this is not something new. Our economy has been replacing good jobs with bad jobs for quite some time. If you can believe it, 60 percent of the jobs lost during the last recession were mid-wage jobs, but 58 percent of the jobs created since then have been low wage jobs.
Will nearly all of us eventually be working in fast food restaurants or stocking shelves at retail giants like Wal-Mart?
Amazingly, the United States actually has a higher percentage of workers doing low wage work than any other major industrialized nation does.
No wonder our middle class is being absolutely destroyed.
At this point, wages as a percentage of GDP are at an all-time low in America. As millions more good jobs are shipped out of the country, the competition for the remaining jobs will become incredibly fierce and that number will get even lower.
Many Americans that actually do have jobs right now find that they simply don’t make enough to take care of themselves and their families. They are called “the working poor”, and their ranks are growing steadily. Today, about one out of every four workers in the United States brings home wages that are at or below the federal poverty level.
American households are getting poorer at a time when prices continue to rise. Median household income in America has declined for four years in a row. Overall, it has fallen by over $4000 during that time span.
But have the prices in the stores declined?
Of course not.
No wonder middle class families are feeling more financial stress than ever before. A survey conducted by the Pew Research Center found that 85 percent of middle class Americans say that it is harder to maintain a middle class standard of living today than it was 10 years ago.
The transition from good jobs to bad jobs in our economy has been taking place for a very long time, and it is not going to be reversed overnight. Back in 1980, less than 30% of all jobs in the United States were low income jobs. Today, more than 40% of all jobs in the United States are low income jobs. There are less tickets to the middle class than there used to be, but neither political party seems interested in stopping the flow of good jobs out of the country.
If we keep doing the same things that we have been doing, we will continue to get the same results.
When I was young, I was told that there would always be “good jobs” available for anyone that got a good education and that worked hard.
What a crock of baloney that turned out to be.
According to a paper that was recently released by the Center for Economic and Policy Research, only 24.6 percent of all jobs in the United States qualify as “good jobs” at this point.
In a previous article, I detailed the three criteria that they used to define what a “good job” is….
#1 The job must pay at least $18.50 an hour. According to the authors, that is the equivalent of the median hourly pay for American workers back in 1979 after you adjust for inflation.
#2 The job must provide access to employer-sponsored health insurance, and the employer must pay at least some portion of the cost of that insurance.
#3 The job must provide access to an employer-sponsored retirement plan.
More than 75 percent of all jobs in the U.S. today are not “good jobs”, and things are not looking promising for the future.
No wonder so many families are barely surviving these days. Right now, approximately 77 percent of all Americans are living paycheck to paycheck at least some of the time. That is a dreadful number.
But if you still do have a job, you should consider yourself to be fortunate.
There are millions upon millions of Americans out there without any job at all.
Did you know that 53 percent of all Americans with a bachelor’s degree under the age of 25 were either unemployed or underemployed during 2011?
Hordes of fresh college graduates are entering the marketplace each year only to find that the good jobs that they were promised simply are not there.
And now it looks like things are getting even worse. This week Citigroup announced that it plans to eliminate 11,000 jobs in an attempt to reduce costs. But Citigroup is far from alone. We have seen dozens of major layoff announcements since the election. If you doubt this, just see this article and this article.
It is time to wake up and admit that our economy is in an advanced state of decline, that we need to quit shipping our jobs out of the country, and that what we are doing now is clearly not working.
If we are “the greatest economy on earth”, then why are approximately 48 percent of all Americans either considered to be “low income” or are living in poverty?
We need to return to the principles that our Founding Fathers founded this country on or else things are going to get a lot worse and people are going to get very, very angry.
Our politicians have been pitting different groups of people against one another and many of them have been blaming the wealthy for all of our problems. Never before in my lifetime have I seen so much anger directed toward those that have money. This anger is even being expressed in ways that you would not normally expect. For example, the California Federation of Teachers recently produced a video that portrays wealthy people peeing on poor people. That shocked me.
Eventually, all of this anger is going to lead to violence if we are not careful. When the next major wave of the economic crisis strikes and unemployment gets significantly worse, I fear for what might happen. I believe that it is very possible that we may see mobs of struggling people storm into wealthy neighborhoods and play “Robin Hood” with their possessions.
Instead of hating one another, we need to return to the principles that once made our economy so great. Those principles would enable everyone to prosper.
Unfortunately, this country continues to turn away from those principles and hate and anger continue to grow.
If we continue down this path, the end result is going to be a complete and total nightmare.
It is possible to turn this economy around. But we can’t do the same things that we have been doing. We have to start making better decisions.