Trump Isn’t All Wrong About Trade Deficits – – How Washington’s Money-Printers Betrayed American Workers
……. Needless to say, the lack of good jobs lies at the bottom of the wealth and income drought on main street, and the recent BLS jobs reports provide still another reminder.
During the last seven months goods-producing jobs have been shrinking again, even as the next recession knocks on the door. These manufacturing, construction and energy/mining jobs are the highest paying in the US economy and average about $56,000 per year in cash wages. Yet it appears that the 30-year pattern shown in the graph below – – lower lows and lower highs with each business cycle – -is playing out once again.
So even as the broadest measure of the stock market – -the Wilshire 5000 – – stands at 11X its 1989 level, there are actually 20% fewer goods producing jobs in the US than there were way back then.
This post was published at David Stockmans Contra Corner on August 4, 2016.
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