ONLY JOBS matter in a Service Economy
The concept of a jobless recovery is nonsense in a service economy. Sure it is a lagging indicator in a production economy where you can increase production without hiring more....but in a service economy, it takes people to service. Job/hours creation is a leading indicator in a service economy. America is declining in both jobs and hours worked.
Right now we are seeing a large increase in layoffs at cities, counties, and states.....including schools and hospitals......these layoffs are as a direct result of a slowing economy and evaporating tax receipts. In a service economy, cutting jobs also decreases tax revenues causing even more job cuts.
In a nation where the government is the largest consumer in the world like America''s.....no economy in the world is impacted by declining tax receipts like ours....and right now we are seeing record declines in tax revenues.
The world is now taking a stand against our spiraling and unsustainable deficit.....it is selling off its dollars and driving the value of our currency in the ground. Gold almost hit $1100 setting a new record. Oil is over $80 despite declining demand as revenues to our large and small corporations are shrinking.
EXPECT MASSIVE LAYOFF ANNOUNCEMENT BETWEEN NOW AND THE END OF THE YEAR.
Even Microsoft announced today ANOTHER round of cuts of approximately 800.....that is after cutting thousands.
What makes this time different than any in the past is the very limited hiring....vacancies are being left unfilled and new hires are few and far between. It would be interesting to see how Motley Fool was faring in these turbulent times???
The concept of a jobless recovery is simply to conceal the fact that government's policies of Zombulation are shutting down the Industrial Economy in preparation for the Alstrynomic Age. This will be very exciting times as we approach....but in the meantime, shutting down the industrial economy will be very convulsive for many around the world as most are currently employed in the industrial economy.
In addition, most assets current value is due to an industrial economy. Many assets now valuble will be worthless or near worthless in the Alstrynomic Age. Just look at what a buggy and or buggy whip was worth in 1900 and what one was worth just a few decades later.
These are interesting times. Creative destruction will be convulsive and rapid.....the magnitude of change will surprise many....the only question now is not if, but how......and that is what Alstry will focus on in addition to the shutting down of the old industrial economy.