A new jobs report was released on Friday and it exposed a very weak economy. Only 162,000 new jobs were added last month, less than predictions and much less than the average monthly gain of 202,000 jobs from the first half of 2013. To make matters worse, the new report also revised downward the minimal job gains from the previous two months, meaning that 26,000 fewer jobs were created than initially reported in May and June.
The weak labor report means that the Federal Reserve will continue their quantitative easing program, in which they pour $85 billion a month into bond purchases in an effort to sustain growth. Simply, the economy is not strong enough to survive without the infusion of cash from the Federal Reserve.
The weakness of the economy is clearly shown in these job numbers. Of all of the jobs created this year, an amazing 77% have been part-time. It is no wonder that a recent AP survey showed that 80% of Americans are either in poverty or close to poverty. In fact, a June Bankrate.com survey showed that 76% of Americans are living paycheck to paycheck and 27% of Americans have no savings at all. In the majority of the country, millions of Americans are suffering, being unable to secure adequate wages and being forced to accept government assistance. Thus, it is no surprise that 47.7 million Americans receive food stamps to cover the costs of feeding their families. At the beginning of the Obama administration, only 31.9 million Americans received food stamps, so this program has experienced a massive 50% increase in just a few years.
In this toxic environment, a new healthcare plan will be implemented which will lead to not only anxiety and uncertainty, but also increased health insurance premiums. In addition, basic expenses like gasoline prices have increased steadily in recent months, while wages have not kept pace. Last month, average hourly wages fell .1% to $23.98, while the average work week dropped to 34.4 hours, nowhere near the former standard of a 40 hour work week.
The media likes to parrot the Obama administration’s bogus claim of an economic recovery. They cite an improving stock market and a declining unemployment rate, but beneath the numbers, the real picture is another matter altogether.
In reality, the most Americans are in no position to enjoy the benefits of an improving stock market. While average Americans are unaffected, a booming Wall Street certainly helps the very rich, who have done well during the Obama years. According to a new University of California study, the wealthiest Americans in the top 1% enjoyed robust income growth of 11.2% in the first three years of President Obama’s term. In contrast, the bottom 99% of Americans suffered an income decline of .4%.
With incomes declining in real terms, millions of Americans are in no position to invest, save or purchase big ticket items, they are just trying to survive in this Obama economy.
The media touted that the July labor report showed an unemployment rate decline to 7.4%, the lowest since 2008. However, that figure is practically meaningless with the surge of part-time workers throughout the nation and the millions of Americans who have exited the workforce altogether. In July, another 37,000 Americans left the workforce as the labor force participation rate fell to an anemic 63.4%.
Overall, the economy is still in big trouble, Americans are hurting and nothing is on the horizon to help the situation. Instead, Americans can expect more economic misery when the health care law takes effect and medical costs start increasing even more.
In the guise of helping Americans, our government is just making matters much worse.