The Department of Labor announced that payrolls rose by 431,000 jobs last month. The prediction was that we would have 536,000 new jobs but hey, when it comes to the government, being right 80% of the time isn’t bad right?
This creation of jobs caused the U3 unemployment rate to drop from 9.9% to 9.7%. Also good news right?
The short answer is no.
The vast majority (90%) of the 431,000 jobs were from the once-a-decade census. These are temporary jobs that will disappear in a few months.
And about that unemployment rate, the funny thing is, it doesn’t include the underemployed. You know, those folks that have had to pick up three part-time jobs to pay the bills. The U3 really only calculates the percentage of people who are unemployed but still seeking a job in the last four weeks. If you really want to know how many people cannot find a job or are woefully underemployed, you have to look at the U6 unemployment calculation. That, by the way, is 16.6%.
As we write this, the National Debt Clock shows that the National Debt is about $13,041,782,000,000. That is $42,149 per citizen and $118,273 per taxpayer in the US.
If almost 10% of the US’s able bodied workers cannot find a job and almost 7% are working at the nearest burger joint, how are they ever going to pay back their share of the thirteen trillion dollars?
Make no mistake, the Democrats in control of the White House, Senate, and Congress will have no choice but to raise taxes on everyone to pay this debt. And as far as that Obama promise not to raise taxes on anyone making less than $250,000 per year, think again. It is mathematically impossible.
According to the Federal Reserve, when you add up all of the physical money in circulation, the physical money held in bank vaults, all of the deposits banks have, all of the check accounts, all of the traveler’s checks accounts, retail money market accounts, certificates of deposit, and other money market-type accounts you come to about $8.5 trillion dollars. That’s about $4,541,000,000,000 less than the national debt.
That means the government could seize virtually every dollar in circulation and still not pay the debt. They simply cannot balance this debt on the backs of the rich. Nor can they do it on the backs of every citizen. This is the definition of out of control spending.