Friday, December 2, 2016

Forget the Jobs Report

News
People generally see what they believe to be true. Most Americans believe America is great, or that Donald Trump will make America great again. Perhaps, he'll do it, but to move beyond words, he'll have to deal with big government and its effect on American wages. American workers are not competitive, relatively expensive subgroup of the global labor pool, because of taxation and excessive regulations have driven up its price. Companies, for example, move operations to Mexico, because cheap labor, a by production of smaller government, boost profits and motivate it.

While the Trump Administration is taking a victory lap with Carrier, smart money knows it won't last as long the role and scope of government is not dramatically changed (chart). Change, a byproduct of crises and pain, rarely spawns from the voting booth.

Chart


Headline: Unemployment drops to 4.6%, lowest since 2007

The U.S. economy added 178,000 jobs in November, the Labor Department reported Friday, and the unemployment rate fell sharply to 4.6% from 4.9% in October.

It's the lowest rate since August 2007.


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