Friday, June 4, 2010

Only 20,000 Real Jobs Added To The Economy In May

The May Unemployment Report is out and the numbers are astoundingly dismal. Like I predicted in yesterday's blog, the bulk of the jobs created in May were for temporary Census worker positions. In fact, of the 431,000 jobs created, 411,000 were Census workers; leaving the net increase to be about 20,000. Further, previously reported numbers for March and April, were lowered with a loss of an extra 22,000 jobs. Therefore, in reality, the 20,000 jobs created in May were more than offset by the 22,000 additionally lost in the prior two months (Click here to See Story: Jobs Growth Is Disappointing Due to Weak Private Sector).

Once again, the economists were shocked. They had predicted a growth of 500,000 to 575,000 jobs for the month. Economist and Presidential cheerleader at Moody's, Mark Zandi, had actually predicted 575,000 jobs in May (Click here to See Story: Census hiring to spike job figures in May). For reference, Zandi is one of the economic idiots who wholeheartedly backed the failed Obama/Democrat stimulus package. But, if Zandi and the rest of the economists would simply Google the word "layoff", they'd understand that the employment situation in real life is job losses and not job creation. That's why I've been so negative about the economy for months now.

From a political standpoint, this poor jobs' number will cause the Democrats -- literally in panic for their very own jobs in the Fall elections -- to push for another stimulus package. However, I think they've already proven they haven't a got a clue how to create or even save a single job in America.

Additionally, the Census jobs' number might be phony. The worker tally in the May report might just be a faked number through an intentional process of hiring and rehiring people a number of times to inflate the Census headcount. This charge was made yesterday by a whistle blower who has been rehired and trained by the Census Bureau a total of 5 times:

I read this morning that Obama touted the hiring of all those new Census workers (Click here to See Story: Obama: Economy 'getting stronger by the day'). What most liberals, like Obama, don't seem to understand is that you need to create at least 18 private sector jobs in order to have enough income tax revenue to cover the cost of hiring "one" new, Federal government worker. That's because 1/2 of those newly-created private sector jobs won't pay any taxes; leaving the total burden of paying for any new government position to the other half. The reason being that most government workers get paid more and get more health and retirement benefits than equivalent jobs in the private sector. And for our state governments, the government to private sector job ratio is even higher. This is why countries like Greece and states like California are in such deep trouble. Throughout this recession, Obama and Democrats have been creating more and more government jobs while protecting state government jobs like teachers, police, and fireman. At the same time the number of jobs in the private sector has kept shrinking. That, my friends, is a complete recipe for disaster and easily raises the potential for a double-dip recession in the coming year.

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