What looks like job growth isn't really

What’s driving American job growth? Wall St. Journal reports that in progressive states, it’s government, social assistance and healthcare. Only a Democrat blue state resident could think that is healthy.  Pay Wall, but it's easily confirmed by checking the Bureau of Labor statistics.

"Nonfarm payroll employment rose by 216,000 in December. Job growth averaged 225,000 per month in 2023, compared with the average monthly gain of 399,000 in 2022. In December, employment continued to trend up in government, health care, social assistance, and construction, while transportation and warehousing lost jobs." Bureau of Labor Statistics, Current Employment Statistics Summary, December 2023

The cost of food--still grateful

 Sometimes I need to remind myself that we in the U.S. still have plentiful, and inexpensive food, despite what Joe Biden is trying to do to the economy in the name of climate change.  I just spent $25.05 at Aldi's.  I buy a lot of fresh things there (and a few bakery items), and it's only a mile from my home. Ohio doesn't tax food, and recently removed tax on disposable diapers. 

Dozen mini muffins blueberry         3.45

10 gourmet choc chunk cookies      2.19

Cantaloupe chunks 16 oz                 3.29

Pineapple spears 16 oz                     3.49

Butternut squash 2.03 lb                   1.81

Sweet onions 2 lb.                            1.89

Yellow potatoes, small                      3.49

Bananas,  1.55 lb   .41/lb                    .64 

1/2 gal. whole milk                            1.61

Orange juice  1.6 qt                          3.19

According to move.org (a moving company) "The average cost of groceries in America in 2023 is $415.53 a month per person1. [Ohio is $392.59 per person a month.] However, this number can vary greatly depending on factors like age and personal eating habits. Location is another important—though potentially surprising—factor in determining food costs. Groceries cost more in some US cities and states than others." How Much Does Food Cost in the US? | Move.org

Nerd Wallet says:  "Have food prices been rising? Absolutely. Thanks to a combination of inflation, pandemic-related supply-chain disruptions and tariffs on certain foreign imports, food prices have steadily risen since 2020.

But inflation has been slowing in the past year and the latest data shows the cost of groceries aren’t rising as fast as they once were.

Food prices rose 3.7% between September 2022 and September 2023, according to the most recent consumer price index (CPI) report from the Bureau of Labor Statistics. By comparison, at the same time in 2022 prices rose 11.2% over a one-year period." The Cost of Groceries: Are Food Prices Going Up? - NerdWallet

Biden's American rescue plan isn't

A hike in the minimum wage for federal workers to $15/hour is in Biden's American rescue plan. Don't fall for it. Only a tiny percentage of Americans work for minimum--it will make no difference, except for reluctance to hire inexperienced, slow workers. First minimum wage law was passed under FDR during the Great Depression. Threw many black families out of work; before that, blacks had lower unemployment than whites. They used their labor to outsmart the white workers and could bid low for jobs when everyone was desperate to work. Before government "help" blacks also had a higher marriage rate than whites. Now it's low for both. Black men had a higher marriage rate than white men until 1950, and black women had a higher marriage rate than white women until 1970. This affects education, health and wealth of children. And look at the government programs that ran amuck with the "War on Poverty." Liberals will blame the war on drugs and prison rates, or advocate for more education, but I blame the government's "help."

"The flagship of the New Deal was the National Industrial Recovery Act, passed in June 1933. It authorized the president to issue executive orders establishing some 700 industrial cartels, which restricted output and forced wages and prices above market levels. The minimum wage regulations made it illegal for employers to hire people who weren’t worth the minimum because they lacked skills. As a result, some 500,000 blacks, particularly in the South, were estimated to have lost their jobs." Cato Institute, Dec. 3, 2003

The Minimum Wage: Enemy of Blacks – The Future of Freedom Foundation (fff.org)

On The Historically Racist Motivations Behind Minimum Wage (forbes.com)

https://www.bls.gov/opub/reports/minimum-wage/2020/home.htm?

Teachers’ salaries—not what you think

Some questioned my figures for hourly wages for teachers (in a post about the union strike in Colorado on Facebook) being on average $60/hour.  However, the latest I've found is $61.91--$41.41 is the wage, and $20.50 the benefits. Sept. 2018 figures. https://www.bls.gov/news.release/pdf/ecec.pdf.

Benefits for public employees are far more generous than private sector. "Total employer compensation costs for private industry workers averaged $34.53 per hour worked in September 2018. Total employer compensation costs for state and local government workers averaged $50.03 per hour worked in September 2018. "

For the most part we don't pay federal income tax on our benefits, and the government is lusting after that--believing it belongs to the federal government. The employers get a write off too. Imagine the "windfall" to the federal government to waste with just the medical deductions from workers and the business write off costs for the employers.

Kamala Harris must be swooning at the thought!

USAFacts—a new way to gather government statistics

This non-profit has been launched by Steve Ballmer and wife Connie.  Although most non-profits established by wealthy capitalists claim to be non-partisan and unbiased, we’ll have to see about that.  When Ballmer gives interviews we’ll see the clues. But since I frequently use government statistics myself in making my points about medical costs, education, immigration, sex/gender, religion, animals, housing, etc., I welcome any source which can make sense of it all, particularly the blending of federal, state and local.  Federal dollars, for instance, are only 3% of total spending on education.

https://www.geekwire.com/2017/full-interview-steve-ballmer-discusses-usafacts-new-10-k-government/

“USAFacts is a new data-driven portrait of the American population, our government’s finances, and government’s impact on society. We are a non-partisan, not-for-profit civic initiative and have no political agenda or commercial motive. We provide this information as a free public service and are committed to maintaining and expanding it in the future.

We rely exclusively on publicly available government data sources. We don’t make judgments or prescribe specific policies. Whether government money is spent wisely or not, whether our quality of life is improving or getting worse – that’s for you to decide. We hope to spur serious, reasoned, and informed debate on the purpose and functions of government. Such debate is vital to our democracy. We hope that USAFacts will make a modest contribution toward building consensus and finding solutions.”

https://usafacts.org/

  

The plan is to divide all government statistics by the four items in the Preamble’s mission statement.

“Revenue And Spending

Government revenue and expenditures are based on data from the Office of Management and Budget (OMB), the Census Bureau, and the Bureau of Economic Analysis (BEA). Each is published annually, although due to collection times, state and local government data are not as current as federal data. Thus, when combining federal, state, and local revenues and expenditures, the most recent year shown is 2014, the most recent year for which all three sets of data are available. We show government spending through two different lenses:

Spending by segment: We recategorized several programs and functions to align them with four constitutional missions based on the preamble to the constitution:

• Establish Justice and Ensure Domestic Tranquility
• Provide for the Common Defense
• Promote the General Welfare
• Secure the Blessings of Liberty to Ourselves and Our Posterity

This approach is modeled after what businesses do for their own management accountability and shareholder reporting. Public companies present their businesses in segments – a logical framework for discussing the areas in which the they operate. We do the same for government. In using this constitutional framework, we have made judgements in how we group programs. . .

Spending by function: We also show spending by functional categories such as compensation for current and past employees, capital expenditures, transfer payments to individuals, interest on the debt, and payments for goods and services. “

Displaced workers, BLS report today

Is this good news or bad news? Democrats will say it's better than the last report. So I suppose it depends if you were one of the 66% who were reemployed. Republicans will say at what job and where and at what wage? Increasing minimum wage sure won't help those displaced workers. The recession was over in June 2009.

(Aug. 25, BLS report) "From January 2013 through December 2015, there were 3.2 million workers displaced from jobs they had held for at least 3 years, the U.S. Bureau of Labor Statistics reported today. This was down from 4.3 million workers for the prior survey period covering January 2011 to December 2013. In January 2016, 66 percent of workers displaced from 2013 to 2015 were reemployed, up from 61 percent for the prior survey in January 2014."

Spending patterns of older Americans

 

 

  By 2050, when our children are 80+ there will twice as many seniors as today. So the purpose of this study (BLS) is to figure out how do people over 65 spend money (we’re consumer units). If businesses and investor are going to plan, they need to know where the opportunities are.

 

The first thing you notice is how income, which peaks in the 50s, drops in the 70s (retirement pensions, savings, investments—which is why we need to elect capitalists). I think the food category is high, but that’s because it probably includes eating out—and we sort of tuck that into entertainment (we don't do much for entertainment). Everyone eats out much more than they need to—food is pretty reasonable, but if you’re paying someone to prepare and serve it, not so much. In 2013, Americans spent 5.6 percent of their disposable personal incomes on food at home and 4.3 percent on food away from home. 

  

I was surprised that housing costs (as percent of income) were as high as the study shows.

Contributions got lumped into “other” so that’s a pretty sloppy category. I know there are all sorts of categories we could reduce, but really don’t have the will. Clothing costs are down for older Americans.  I just love shopping for clothes at resale stores and getting brand name jeans for $1.00. I didn’t discover them til after I retired. For nice stuff, I just let my daughter do that for Christmas and birthdays. But that trend isn't good for some malls and retail stores with such a shift in demographics.

http://www.bls.gov/opub/btn/volume-5/spending-patterns-of-older-americans.htm