Paul Craig Roberts
Nov 8, 2010
If we cannot trust what the government tells us about weapons of mass destruction, terrorist events, and the reasons for its wars and bailouts, can we trust the government’s statement last Friday that the US economy gained 151,000 payroll jobs during October?
Apparently not. After examining the government’s report, statistician John Williams (shadowstats.com) reported that the jobs were “phantom jobs” created by “concurrent seasonal factor adjustments.” In other words, the 151,000 jobs cannot be found in the unadjusted underlying data. The jobs were the product of seasonal adjustments concocted by the BLS.
As usual, the financial press did no investigation and simply reported the number handed to the media by the government.
The relevant information, the information that you need to know, is that the level of payroll employment today is below the level of 10 years ago. A smaller number of Americans are employed right now than were employed a decade ago.
Think about what that means. We have had a decade of work force growth from youngsters reaching working age and from immigration, legal and illegal, but there are fewer jobs available to accommodate a decade of work force entrants than before the decade began.
During two years from December 2007 – December 2009, the US economy lost 8,363,000 jobs, according to the payroll jobs data. As of October 2010, payroll jobs purportedly have increased by 874,000, an insufficient amount to keep up with labor force growth. However, John Williams reports that 874,000 is an overestimate of jobs
as a result of the faulty “birth-death model,” which overestimates new business start-ups during recessions and underestimates business failures. Williams says that the next
benchmark revision due out next February will show a reduction in current employment by almost 600,000 jobs. This assumes, of course, that the BLS does not gimmick the benchmark revision. If Williams is correct, it is more evidence that the hyped recovery is non-existent.
Discounting the war production shutdown at the end of World War II, which was not a recession in the usual sense, Williams reports that “the current annual decline [in employment] remains the worst since the Great Depression, and should deepen further.”
In short, there is no employment data, and none in the works, unless gimmicked, that supports the recovery myth. The US rate of unemployment, if measured according to the methodology used in 1980, is 22.5%. Even the government’s broader measure of unemployment stands at 17%. The 9.6% reported rate is a concocted measure that does not include discouraged workers who have been unable to find a job after 6 months and workers who want full time jobs but can only find part-time work.
Another fact that is seldom, if ever, reported, is that the payroll jobs data reports the number of jobs, not the number of people with jobs. Some people hold two jobs; thus, the payroll report does not give the number of employed people.
The BLS household survey measures the number of people with jobs. The same October that reported 151,000 new payroll jobs reported, according to the household survey, a loss of 330,000 jobs.
The American working class has been destroyed. The American middle class is in its final stages of destruction. Soon the bottom rungs of the rich themselves will be destroyed.
The entire way through this process the government will lie and the media will lie.
The United States of America has become the country of the Big Lie. Those who facilitate government and corporate lies are well rewarded, but anyone who tells any truth or expresses an impermissible opinion is excoriated and driven away.
But we “have freedom and democracy.” We are the virtuous, indispensable nation, the salt of the earth, the light unto the world.
Dr. Paul Craig Roberts is the father of Reaganomics and the former head of policy at the Department of Treasury. He is a columnist and was previously an editor for the Wall Street Journal. His latest book, “How the Economy Was Lost: The War of the Worlds,” details why America is disintegrating.
This article was posted: Monday, November 8, 2010 at 5:06 am