Sunday, June 30, 2013

The Underlying Fundamentals

I'm constantly amazed at the ability of people to delude themselves into thinking everything is hunky dory.  I hear over and over again how our economy is strong, recovering, or turned the corner.  This was the exact same horseshit I heard every three months in regards to Iraq.  It seems like unless you're in the FIRE (Finance, Insurance, Real Estate) economy - things ain't been better for you.  Likely, they've been worst. Its obvious to all and sundry how things have been getting worst. 

More people have gone on social services since Obama took office - food stamp and welfare use have gone through the roof. More people are unable to find fulltime work, and instead they become part time wage service economy wage slaves.  Hell, even Wal Mart is having problems with their legendary logistics because they can't afford to hire enough people. 

Then there's real unemployment.  Not the heavily manipulated U-6 stat that doesn't take into account people who have given up work, or the U-10 stat that ignores people on SSDI.  The real unemployment around this country is somewhere around 16%.  Figure that as nearly one fifth of the nation is not working.  Our labor force participation rate is about 64%.  How the hell is our economy 'strong' in the face of this?

Of course, the press is in full on protect Obama mode.  They can't make up their mind about whether the weak metrics are good for the economy, or the strong metrics are good for the economy.  Some days you'll see the same report blaming both.  Its an insane series of events, but we're expected to believe that a generation in student debt working as service level drones is going to be great.

We've got Obama announcing his 'war on coal', with the energy sector being one of the few that's doing alright.  Remember those green jobs that Obama promised would save the economy? How'd that work out? Meanwhile coal, oil, and shale are booming, but those jobs don't help out Obama's constinuents or make coastal elites happy, so we have to get rid of them.  Ignore the fact that global warming is a farce - its all about punishing your enemies in every way possible.

1 comment:

  1. I still step back into the world of big business as a consultant and I am not liking what I see. There are states that are so broke they cannot pay health care insurance companies for contracts on current employees and retirees on pensions.

    These states are ones with large urban areas (e.g. Chicago, Detroit, LA) where government assistance (unemployment payouts, section 8 housing, food stamps, disability, Medicaid, etc) is rampant and increasing.

    What happens when the public coffers can no longer write the checks to all of these people? And that day is coming soon, IMO. Raise taxes on the decreasing working population? I don't see how that can be done without totally crushing them out and putting the final nail in the economy's coffin. I don't see how it can be done politically.

    There is a day of reckoning coming and it isn't far off. I am imagining riots on the scale of '67 - '68 Detroit; maybe worse. That is the best case scenario.