- Oct 30, 2004
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A week-and-a-half ago reporters lamented the loss of 4000 jobs in the U.S. economy. However, what few reporters mentioned, possibly because they were completely unaware of it, is that the United States economy needs about 150,000 new jobs, preferably solid middle class jobs, every month merely to keep pace with the nation's population explosion. So, in reality, the U.S. economy lost about 154,000 jobs relative to population growth.
How could reporters miss that crucial fact? Did anyone read any news reports or hear any reporters mentioning that the nation also needs jobs to keep up with population growth? Is it that reporters are unaware of it because economists (who should know better) are purposely misleading them by failing to mention this key fact, or is it that reporters are concerned about setting off a panic amongst the public?
A great op-ed by former U.S. Assistant Secretary of the Treasury to the Reagan Administration Paul Craig Roberts describes the nation's economic situation:
American Economy: R.I.P.
How could reporters miss that crucial fact? Did anyone read any news reports or hear any reporters mentioning that the nation also needs jobs to keep up with population growth? Is it that reporters are unaware of it because economists (who should know better) are purposely misleading them by failing to mention this key fact, or is it that reporters are concerned about setting off a panic amongst the public?
A great op-ed by former U.S. Assistant Secretary of the Treasury to the Reagan Administration Paul Craig Roberts describes the nation's economic situation:
American Economy: R.I.P.
In the 21st century the US economy has ceased to create jobs in export industries and in industries that compete with imports. US job growth has been confined to domestic services, principally to food services and drinking places (waitresses and bartenders), private education and health services (ambulatory health care and hospital orderlies), and construction (which now has tanked). The lack of job growth in higher-productivity, higher-paid occupations associated with the American middle and upper middle classes will eventually kill the US consumer market.
How do Americans pay for it?
They pay for it by giving up ownership of existing assets?stocks, bonds, companies, real estate, commodities. America used to be a creditor nation. Now America is a debtor nation. Foreigners own $2.5 trillion more of American assets than Americans own of foreign assets. When foreigners acquire ownership of US assets, they also acquire ownership of the future income streams that the assets produce. More income shifts away from Americans.
How long can Americans consume more than they can produce?
American over-consumption can continue for as long as Americans can find ways to go deeper in personal debt in order to finance their consumption and for as long as the US dollar can remain the world reserve currency.