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9/10/2012

The Market Doctor…Defender of the Middle Class

Hey, unemployment notched down to 8.1% !!  But a real look at the numbers depict that for every job created in August, about 4 people left the workforce, or in other words, if the same number of people remained in the workforce, unemployment would have gone up to about 8.4%

For all our loyal followers, this information should be no surprise to you.  The outrageous surprise however is the lack of any mention whatsoever as to the actual cause behind these numbers and any real remedy to this degenerating situation.  Yes, the obvious causes are continued doldrums in real estate, and then there’s the real estate effect and of course there’s a problem with housing blah, blah, blah.

Massive fiscal and monetary stimulus has been injected into the US economy over the past four years.  Interest rates remain zero and even the Stock market is posting double digit gains…but still no improvement to job creation.  Oh yes, almost forgot that companies aren’t hiring because they are uncertain as to the state of the economy next year given the elections.  Or here’s the best one I’ve heard….the jobs are out there but US workers don’t have the skills to fill them !!  We find that one particularly despicable in light of the excellent US universities (best on the planet) that produce graduates of varying skills on a regular basis.

What’s the problem?  The Doc has been sounding the alarms for years. The problem is ongoing job destruction as employment has shifted to low wage zones.  This is what some call “level the playing field of globalization”.  What that means for US workers is a gradual decline in wages, quality of employment and quality of life.  And if you think it’s going to change…here’s a notion, it’s just starting.  Hopefully, somehow, the powers to be will do the right thing. 

 

Stephan Kudyba (MBA, PhD)                      THE MARKET DOCTOR

 

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