…We see two things in the chart above on average American wages. First we see how (in real dollars) wages for the average U.S. worker have been falling steadily for more than 40 years. Those wages have now fallen by more than 50%, all the way down to the same levels as during the Great Depression. And we see how the U.S. government’s lies about inflation have almost entirely concealed this relentless collapse in wages. How convenient.
Meanwhile, we see the percentage of Americans who are actually working also plummeting downward, to a 30-year low. The collapse in wages has been accompanied by a collapse in employment levels. Combined, it translates into a collapse in consumer purchasing power of well in excess of 50%.
The great Economic Myth (naturally perpetuated by the U.S. government) is that “the world can’t live without” the American Consumer. The truth is that the rest of the world has been gradually learning how to live without the American consumer for the past 40 years, as the American consumer is literally less than half what he used to be. The real-and-obvious question instead is how will the U.S.’s consumer economy be able to survive the Death of the U.S. Consumer?… via Economy: The U.S. Retail Collapse Accelerates ETF DAILY NEWS.
How do you pretend the economy is recovering and report a shiny 8.3% unemployment number?Simple – just add up the population within the city limits of Dallas, Salt Lake City, San Diego, Kalamazoo, Tampa, Mobile, Spokane, Nashville, Las Vegas, Roanoke and Cincinnati. Then take that number and double it. That will give you roughly the number of people needed to disappear out of the labor force to show the beginnings of a dramatic economic “recovery”.
Currently, there are nearly 88 million in the ever growing pool of persons not included in the labor force, up from 78 million in 2008. Oh, but the pain doesn’t stop there…
When an economy is bad, one usually has to dredge the bottom of the barrel to find statistics they can refinish and make look like good ones. That appears to be the case with today’s jobs report as not only did 1.2 million Americans fall off the benefits roll to no longer be considered… well, alive to the government, but it now appears that the propaganda of a new 8.3% unemployment rate is made up of record levels of part time workers…. via The Daily Economist
“… A closer look at the numbers reveals just how fraudulent these employment statistics really are. Between December 2011 and January 2012, the number of Americans “not in the labor force” increased by a whopping 1.2 million. That was the largest increase ever in that category for a single month. That is how the federal government is getting the unemployment rate to go down. The government is simply pretending that huge numbers of unemployed Americans don’t want to be part of the labor force anymore...” via Economic Collapse
… the end result is that in January, those “not in the labor force” did in fact rise by 1.2 million whether compared to December or to 2011 – please, go ahead and check as many times as needed, and the labor force participation rate dropped to a new 30 year low of 63.7%, a number which incidentally only has to drop by 5% more percent for the BLS to report zero, or even a negative, unemployment rate.
A month ago, we joked when we said that for Obama to get the unemployment rate to negative by election time, all he has to do is to crush the labor force participation rate to about 55%. Looks like the good folks at the BLS heard us: it appears that the people not in the labor force exploded by an unprecedented record 1.2 million. No, that’s not a typo: 1.2 million people dropped out of the labor force in one month! So as the labor force increased from 153.9 million to 154.4 million, the non institutional population increased by 242.3 million meaning, those not in the labor force surged from 86.7 million to 87.9 million. Which means that the civilian labor force tumbled to a fresh 30 year low of 63.7% as the BLS is seriously planning on eliminating nearly half of the available labor pool from the unemployment calculation. As for the quality of jobs, as withholding taxes roll over Year over year, it can only mean that the US is replacing high paying FIRE jobs with low paying construction and manufacturing. So much for the improvement….