Good Morning Middle America, your King of Simple News is on the air.
U.S. NEWS: Unemployment continues to haunt the U.S. landscape with few areas unaffected. But then, that should have been visible two years ago to a blind man on a fast horse.
Lost jobs in construction and manufacturing seem to be leading the way to the bottom. Let’s apply some Mikeronomics to that problem and see if we can flesh out the reason.
Housing is in the toilet (that’s an economic term), and those people who used to build houses don’t do that anymore. The people who used to manufacture the things to build houses with, don’t do that anymore either. Neither group buys new autos with their unemployment compensation checks…so I guess that about solves the mystery.
The government will come to these same conclusions about 6 months from now.
In March, the U.S. lost 80,000 jobs, but that’s old hat and you heard it on the 6 o’clock News. What you didn’t hear on the local or national or world news was that on average, the U.S. adds 180,000 jobs per month. Want to know why? Because there are on average, 180,000 new job seekers each and every month. Want to know why? Because we believe that growth is good.
But this is not the end of the good news. During the past 90 days, the U.S. has lost 232,000 jobs. That means that each month, 180,000 people entering the job market also failed to find employment, but are not included in the numbers, as they were never employed previously.
The actual real unemployment then, grew by 772,000 in 90 days. They probably just forgot to tell us that on the 6 o’clock news huh?