Another myth is that new jobs are only low paid jobs. Here are the facts on that.
There are many people who like to condemn the Fed for their manipulation of the economy, and that is a legitimate thing to do. However, to suggest that nothing at all ever turns positive in the economy, is just denying reality.
It should be remembered that Austrian School Business Cycle Theory is a theory about boom AND bust,
The boom is a distorted boom, to be sure, and will not last, but to deny its existence at all is more fanatical cult-like chanting than studious analytic observation of what really goes on.
-RW
The legitimate complaint about part time jobs is that there has been a spike in "involuntary" part time:
ReplyDeletehttp://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015/08/share%20of%20young%20people%20across%20groups.jpg
http://www.zerohedge.com/news/2015-08-04/goldman-confused-if-economy-recovering-then-how-possible
But that's almost certainly due to Obamacare, not a missing credit boom.
I still say you aren't looking at the big picture. This is a 65+ year boom phase. It topped out in 2008, and now the Fed is propping up the debt pyramid. These short-term statistics are meaningless.
ReplyDeleteIt's all in how one looks at the data. All about context.
ReplyDeleteThe title of the later chart shows it's a cherry picked chart. They aren't showing the higher paid areas that aren't keeping up.
Here's another look at the quality of jobs:
http://www.zerohedge.com/news/2015-05-08/april-there-were-26-waiters-and-bartenders-every-manufacturing-job-added
The first plot starts in 2009. So full time employment is 8% better than the bottom. How much has the population increased since then? That's what we have to know to understand that plot.
http://www.zerohedge.com/news/2015-03-07/amazing-math-bls-how-america-added-17-million-jobs-7-years-and-zero-full-time-jobs
I can see the data of these two plots in the zerohedge plots, but they tell very different stories. It's all about presentation and context.
Great post and great responses. It shows why Von Mises was so critical of statistical based analysis of so-called macro-economics. The human action of economics is full of variables that are constantly changing and by their nature can not be measured or captured by data. Only logic can make sense of it. Fortunately the free market genie unleashed during the industrial revolution can not be put back in the bottle. With six plus billion people on the planet all naturally pushing to take advantage of what Abhinandan Malick called "...one of the most beautiful laws of the universe." (the law of association), the free market has become more powerful and compelling than all the thieving, lying, killing people on earth. The logic is clear. To the extent there has been progress in human wealth and well being it has nothing to do with the current liar in chief and everything to do with the law of association.
ReplyDeleteThe source is the "U.S. Department of Labor," does anyone actually trust govt. stats to be truthful anymore?
ReplyDeleteFurther, the job categories appear to be mostly service, what is actually produced other than hot air?
The U.S. has lived off their dollar privilege for years, with the world effectively absorbing it all.
This is gradually ending.
Simply more feel good propaganda courtesy of DOL aided-abetted by Bloomberg-WSJ?