Initial unemployment claims were down by 11,000 last week but continuing claims were up 81000. This has become the new normal for jobs to continue disappearing as the middle class is replaced by the working poor.
Wages continue to fall and jobs that pay a living wage are becoming a thing of the past, but even if this satisfies some conservative fantasy of a low wage America where their money will go farther, it can not last. Most of these service jobs are providing services to people who provide those same services. As Ross Perot sagely prophesized, “you can’t run an economy by giving each other haircuts”. We are reaping the whirlwind of the free trade economics he tried to warn us about.
The Federal Reserve’s beige book report on the economy just came out and painted a very lackluster picture for America. A voting member of the Board has come out in public with a warning of looming deflation. The “solution” he is advocating for is to have the Fed to begin buying government debt to keep investors from buying it thus forcing them to actually invest. There’s a concept for you.