Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: Unemployment

May’s Jobs Report Stronger Than It Appears

This article appeared online at TheNewAmerican.com on Friday, June 2, 2017:

The headline number from the Department of Labor’s Bureau of Labor Statistics’ (BLS) May jobs report, released on Friday, appeared weak: Just 138,000 new jobs were created last month compared to expectations of 185,000 by forecasters. But as usual, a peek beneath the headlines shows an economy growing steadily, providing it with more than enough workers to absorb those leaving or retiring.

After revisions were made to March and April numbers, May’s job creation was more than the last three months’ average of 121,000. Taking into account robust numbers reported from ADP, a national human resources and benefits firm, on Wednesday — it reported that 253,000 new jobs were created in May — Mark Zandi, chief economist at Moody’s Analytics remarked,

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Labor Department’s April Jobs Report Strong and Getting Stronger

This article appeared online at TheNewAmerican.com on Friday, May 5, 2017:  

The headline numbers from the Labor Department’s latest employment report for April were encouraging: 211,000 jobs were added last month (compared to economists’ expectations of less than 190,000), pushing the unemployment rate to 4.4 percent, the lowest seen in 10 years, while average wages grew, year-over-year, by 2.5 percent.

That’s exactly what one would expect from a healthy economy.

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The End for Venezuela Marxist Dictator Nicolas Maduro?

This article appeared online at TheNewAmerican.com on Monday, April 24, 2017: 

Português: Brasília - O chanceler da Venezuela...

Nicolas Maduro

The last time Venezuelans attempted to free themselves from the communist yoke in 2014, the effort failed. The deaths of dozens and the arrests of hundreds failed to budge the dictator who took over from Hugo Chavez at his death in March 2013: Nicolas Maduro. According to the Venezuelan Observatory of Social Conflict, there were 9,286 protests in 2014, resulting in little change. Food rationing continued, shortages mounted, inflation accelerated along with unemployment, and large swaths of civilians were reduced to subsisting on two meals a day.

Last week’s protests involving hundreds of thousands of citizens in Caracas have resulted in more than

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An Inside Look at Venezuela’s Collapse

This article was published by The McAlvany Intelligence Advisor on Friday, April 21, 2017: 

Português: Brasília - O chanceler da Venezuela...

Marxist Nicolas Maduro

Andres Malave grew up in Caracas until Chavez took over. Then he and his family were able to escape – barely – to the US. Wrote Malave, “It was a hard choice, but in hindsight, we were the lucky ones.”

Now he laments the blind eye many Americans turn towards the rioting, the deaths, the crime, the economic devastation, and the ravages of inflation that Venezuela is suffering:

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Trump Stumbles Again: Appoints Interventionist to head his Council of Economic Advisors

This article was published by The McAlvany Intelligence Advisor on Monday, April 10, 2017:

Cover of "DOW 36,000 : The New Strategy f...

One way to test a hypothesis is to apply it to the real world. Two renowned, highly-regarded, and elite-college trained economists did just that. In 1999 James Glassman, the founding executive director of the George W. Bush Institute (Harvard-trained with a BA in government), and Kevin Hassett, BA in Economics from Swarthmore and Ph.D. in Economics from the University of Pennsylvania, wrote Dow 36,000: The New Strategy for Profiting from the Coming Rise in the Stock Market. So sure were they about their prediction they went on the road to promote it, claiming that “stocks are now in the midst of a one-time-only rise to much higher ground – to the neighborhood of 36,000 on the Dow Jones Industrial Average.”

On December 31, 1999 the Dow stood at 11,497. A little over three years later the Dow closed (on March 6, 2003) at 7,673, a drop of 3,823 points, costing those who bought the book and took their advice one-third of their investment.

But both persisted,

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Restaurants Add “Labor Surcharge” to Tabs to Cover Minimum-wage Increases

This article appeared online at TheNewAmerican.com on Monday, March 13, 2017:

English: This is actually Tom's Restaurant, NY...

Instead of increasing their menu prices in response to increased minimum-wage levels, restaurant owners are burying their increased labor costs at the bottom of each tab. The increase, between three and four percent, only comes after the customer has completed his meal. The increase also increases the tip customers leave behind as most customers leave a gratuity based on the check’s total. This is going to raise the average customer’s check, which has already increased by nearly 11 percent since 2012, close to five or six percent.

Some restaurant and fast-food owners aren’t burying the increase but are instead calling attention to it so that customers know that they’re the ones actually bearing the brunt of the forced increase in the minimum wage. Sami Ladeki, the owner of six Sammy’s Woodfired Pizza & Grill restaurants in San Diego and eight others across California, used to call it a “California mandate” but removed it after getting a call from the city attorney. Ladeki, who says he makes a profit of around one percent charging $12 to $14 a pizza, told the Wall Street Journal:

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Friday’s Jobs Report Confirms Wednesday’s Blowout Numbers

This article appeared online at TheNewAmerican.com on Friday, March 10, 2017:

The Department of Labor’s Bureau of Labor Statistics (BLS) confirmed the robust employment numbers reported by ADP/Moody’s on Wednesday: 235,000 new jobs were created in President Donald Trump’s first full month in office, with the unemployment rate dropping further, to 4.7 percent. Just as reported by ADP, the BLS report showed strong growth in construction, manufacturing, and mining, representing nearly a third of the jobs created in January.

Friday’s report also exceeded Wall Street economists’ expectations,

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Brazil Continues to Stagger as Economy Slows, Corruption Probe Expands

This article appeared online at TheNewAmerican.com on Wednesday, March 8, 2017:

Brazil’s economy, once Latin America’s largest and most prosperous, shrank again last year by 3.6 percent following a similar shrinkage in 2015 of 3.8 percent. This marks the country’s worst recessionary period since records started being kept. The best possible scenario for 2017 is an expansion of less than one percent.

The New American has been following the rolling and accelerating disaster since the onset of Operation Car Wash, the investigation into political corruption at the government’s highest levels, which began nearly three years ago. At the time the economy had fallen from a gain of more than 10 percent in 2010, placing Brazil at the top of the BRIC nations (Russia, India, China, South Africa, Brazil) which were touted as contenders to outproduce the Western economies by 2025. No one mentions BRIC any longer.

Instead it’s all about the failing economy and the Operation Car Wash corruption investigation.

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Jobs Report: Across-the-board Growth, Except for Government

This article appeared online at TheNewAmerican.com on Friday, February 3, 2017:

Friday’s jobs report from the Labor Department’s Bureau of Labor Statistics (BLS) for January surprised on the upside in almost every category with job growth of 227,000 new jobs, beating economists’ predictions by more than 50,000. The report reflected numbers from the week before President Donald Trump was inaugurated, and showed growth in every major category, including manufacturing. On the flip side, government employment dropped by 10,000 jobs.

This is the best jobs report in the last four months, and exceeds 2016’s average monthly jobs growth of 187,000. Construction added 36,000 jobs, retail trade added 46,000 jobs, financial services grew by 32,000 jobs, professional and business services increased by 39,000 jobs, education and health services jumped by 24,000 jobs, leisure and hospitality added 34,000 jobs, and manufacturing added 5,000 jobs.

The job market was attractive enough to entice those not in the work force to begin to look for work once again, increasing the workforce participation rate. The labor force increased by 584,000 in January while wages continued to increase, rising 2.5 percent over the past year, and long-term unemployment dropped.

The report reflected a positive change, especially in manufacturing versus government. Over the last year the manufacturing sector lost 46,000 jobs while government employment under the Obama administration jumped by 162,000 jobs. Future reports from the BLS will confirm whether the January reversal has legs.

The January report is merely a snapshot of an economy in transition, which makes it difficult to draw long-term conclusions. Part of its rosy tone may reflect anticipation of the fulfillment of Trump’s promises, such as repealing ObamaCare, cutting taxes and regulations, and removing executive-order impediments that flowed from Obama’s pen especially as he was making his exit.

A broader picture suggests that, as good as the report is, the underlying economy is doing even better. Baby Boomers are exiting the jobs market and retiring at an estimated 10,000 every day. That’s nearly four million leaving the workforce every year. And it could continue for years as the Baby Boomer cohort exceeds 75 million.

There’s also the factor of robotics increasingly replacing jobs as cost-cutting continues to drive automation, along with the push from minimum-wage laws. And yet the jobs report reflected a growing economy that is able to overcome those negatives.

In addition, there is the difficulty of measuring exactly how many people are working and for whom. The Wall Street Journal raised the issue in its recent report “The End of Employees,” which said, “Never before have American companies tried so hard to employ so few people.” The problem, said the Journal, is that “no one knows how many Americans work as contractors, because they don’t fit neatly into the job categories tracked by government agencies [such as the BLS].”

For example, Southwest Airlines has about 53,000 real full-time, full-benefits employees, but another 10,000 outside employees. Google’s parent Alphabet uses contract staff from various outside staffing agencies such as Zenith Talent, Filter, and Adecco, running up an annual bill for those services in excess of $300 million. When Todd Gibbons, CEO of the Bank of New York, was quizzed on the matter, he responded, “It’s just too hard to tell exactly what’s going on with [our] head count and how people compute it and whether [we’ve] got contractors versus full-time employees.” If he doesn’t know how many people work for BNY, how would the BLS know?

What is clear is that January’s report, if it is sustained in the months ahead, reflects the new paradigm emanating from Washington: one of support and encouragement backed by real efforts to unleash the free market by removing some (many) of the impediments placed before it by previous administrations.

Will Mick Mulvaney Pull Trump’s Financial Fat Out of the Fire?

This article was published by The McAlvany Intelligence Advisor on Monday, December 19, 2016:  

English: Official portrait of US Rep. Mick Mul...

Michael “Mick” Mulvaney (shown) rode the Tea Party wave in 2010 into Congress, replacing a 14-term Democrat from South Carolina’s 5th District. He has been handily reelected ever since. He took his oath of office seriously, saying in 2010 that “If political reporters want to know what drives the Tea Partiers, it is their belief in the Constitution. That’s what has always driven me in politics and will guide me in Congress.”

He remained as true to his word as any of those riding the same wave,

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Illinois Governor Vetoes Chicago Bailout Bill

This article appeared online at TheNewAmerican.com on Monday, December 5, 2016:  

English: Source: http://www.chicagob2b.net/lin...

Illinois Governor Bruce Rauner vetoed a bill on December 1 that would have provided a $215 million bailout of the Chicago public schools. So certain were school officials that he would sign it — allowing them to make a past-due payment to the Chicago Teachers’ Pension Fund — that they made it a part of their budget for next year.

The original bill passed by Democrat supermajorities in both houses was for $700 million, but during negotiations Rauner, a Republican, agreed to $215 million instead, in exchange for a promise that the Democrats would institute real pension reform. Once the bill hit Rauner’s desk, however, all deals were off: Give us the money, said the Democrats, and forget pension reform.

Rauner’s veto message is instructive in several regards.

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Chicago Dreaming

This article was published by The McAlvany Intelligence Advisor on Monday, December 5, 2016:  

Chicago Public School Officials were so sure that they would get another bailout from the state that they actually put it into next years budget. The city is behind on making a $730 million pension payment due its teachers pension plan, and the $215 million they were expecting from the state would allow them to make it.

The bill that passed the state senate unanimously and the house overwhelmingly was headed for Governor Bruce Rauners desk for signing until Rauner (pictured) learned that the Democratic leadership had no intention of keeping their promise to institute significant pension reform in order to get the bailout.

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Venezuelan Currency Lost Half Its Value in November

This article appeared online at TheNewAmerican.com on Monday, November 28, 2016:  

Português: Brasília - O chanceler da Venezuela...

Nicolas Maduro

Bloomberg reported last Thursday that Venezuela’s currency — the bolívar fuerte or “strong bolivar” — has lost 45 percent of its purchasing power so far this month, with six days to go. The underlying cause was put simply by Professor Milton Friedman, a member of the “Chicago School” of economic free market thinking and winner in 1976 of the Nobel Memorial Prize in Economic Sciences: “Inflation is always and everywhere a monetary phenomenon … and can be produced only by a more rapid increase in the quantity of money than in output.”

On the other hand, Venezuela’s president, Nicolas Maduro,

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McDonald’s Response to $15 Minimum Wage: Automation in Every Store

This article appeared online at TheNewAmerican.com on Wednesday, November 23, 2016: 

English: The mdonalds logo from the late 90s

It’s official: McDonald’s says that every one of its 14,000 stores nationwide will be replacing order takers with automated touch-screen kiosks. They’re starting with stores where minimum-wage laws mandate the highest rates, such as Florida, New York, San Francisco, Boston, Chicago, Washington, D.C., and Seattle.

According to CNNMoney:

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Latest Jobs Report Masks Continuing Weakness


This article appeared online at TheNewAmerican.com on Friday, November 4, 2016:  

English: Bureau of Labor Statistics logo RGB c...

English: Bureau of Labor Statistics logo RGB colors. (Photo credit: Wikipedia)

The latest jobs report released by the Bureau of Labor Statistics (BLS) on Friday morning was trumpeted as reflective of an improving economy. The Wall Street Journal said the report “signal[ed] solid momentum in the labor market just days before American voters elect a new president,” while Jeffry Bartash, writing for MarketWatch, said it “shows the seven-year-old economic recovery still has plenty of life despite a slowdown in growth earlier in the year.”

A hard look behind the headline numbers — 161,000 new jobs created in October and the unemployment rate at 4.9 percent — reveals

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Tax Foundation Rates Tax Plans of Trump and Clinton: Trump’s Plan Wins

This article appeared online at TheNewAmerican.com on Thursday, October 20, 2016:

Tax Foundation

Tax Foundation (Photo credit: Wikipedia)

Analysis by the Tax Foundation of all that is currently known about the tax plans proposed by presidential candidates Donald Trump and Hillary Clinton concludes that, if enacted, Clinton’s plan would expand government at the expense of a shrinking economy. On the other hand, Trump’s plan would grow the economy, shrink government’s revenues, raise wages, and expand employment.

But it’s not tax “reform,” claims the study’s author, Kyle Pomerleau,

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What Does “Collapse” Look Like? See Venezuela.

This article was published by The McAlvany Intelligence Advisor on Wednesday, October 19, 2016:

State flag of Venezuela.

State flag of Venezuela.

The term “economic collapse” has been bandied about for so long by so many that the phrase has largely lost its meaning. Michael Snyder has been able to make a living from his blog, “The Economic Collapse,” and there’s even a feeble attempt to define the term by contributors to Wikipedia:

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Candidates Silent as Government Spending Jumps, Deficit Increases

This article appeared online at TheNewAmerican.com on Monday, October 17, 2016:  

On Friday, the Treasury Department published the final revenue and spending numbers for the federal government for Fiscal Year 2016, which ended on September 30. According to Treasury’s report, spending increased significantly (by nearly five percent) over the previous year, to more than $3.8 trillion, while revenues remained essentially flat from the year before, at $3.25 trillion. That left a shortfall of approximately $600 billion, forcing the government to borrow 15 cents of every dollar it spent last year. And the two presidential candidates have remained disturbingly silent about the issue.

Said Robert Bixby, the executive director of the Concord Coalition, a non-partisan group that favors reducing the deficit,

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Behind the Jobs Report: Weakness in Manufacturing, Transportation

This article appeared online at TheNewAmerican.com on Friday, October 7, 2016:  

The headline number from Friday’s jobs report was a tepid 156,000 new jobs created in September. Not only did this number fall short of economists’ expectations of 170,000, it was 19-percent below the average job growth of the last three months and 22 percent below the level of monthly job growth of 229,000 in 2015.

The Bureau of Labor Statistics, the agency reporting from inside the Labor Department, was none too sanguine itself in reporting the results:

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Would Trump’s Corporate Tax Cut Help the Economy?

This article appeared online at TheNewAmerican.com on Wednesday, September 28, 2016:  

 Removing the noise and the histrionics from Monday night’s presidential debate, there is a clear division between the two major-party candidates on the state of the economy and what to do about it.

The Democrat candidate said that the economy is on the mend, that jobs are being created, that real incomes have just recently increased, and that the outlook for the economy is sanguine.

The Republican candidate held the opposite view: after seven years the economy is still struggling, the recovery is the weakest in recent memory, and the outlook is bleak.

The Wall Street Journal noted that Trump’s case is the stronger,

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.