UNEMPLOYMENT RISES AS WASHINGTON CONTINUES TO DRINK THE BANKS' KOOLAID

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OBAMA’S BASIC WRONG-HEADED VIEW OF CAPITALISM TAKES ITS TOLL

EDITOR’S COMMENT: It’s pretty simple really. We were able to predict that the economic recovery would stall and head south not because we are genius economists but because we can do arithmetic. The basic flaw in economic policies is Wall Street. There, as the finance capital of the world, money is supposedly provided to small and large business for innovation, growth and expansion. Instead, that engine is dead in the water as Wall Street realized that (1) they could keep the money instead of providing it to an economy badly in need of capital and (b) they could control government and increase their profits 100 fold by NOT doing what Wall Street is supposed to do — provide capital to a capitalist society.

Our economic success arises from two factors — the ability of Wall Street to provide money to finance businesses, and the ability of consumers to pay for things. Both are virtually nonexistent now. Government efforts have been focused away from adjusting inequality of wealth produced by outright fraud, and away from freeing up the capital that Wall Street is still producing, but keeping for itself to create “trading profits.” Having deprived the economy of the oxygen it needs to sustain itself and grow, the policies are producing higher and higher unemployment — on and off the books. And even those who are technically employed, are receiving wages far below the level necessary to produce massive purchasing power from the consumer sector. Consumers are lowest on the totem pole and they are being trashed despite criminal acts of theft, forgery, fabrication, perjury and suborning  perjury.

Job Growth Falters Badly, Clouding Hope for Recovery

By CHRISTINE HAUSER

The United States economy added a meager 18,000 jobs in June, up from a gain of a revised 25,000 jobs in May, the Department of Labor said on Friday. The unemployment rate rose to 9.2 percent from 9.1 percent in May, the department said.

The increase in nonfarm payrolls came mostly from private companies, which added 57,000 jobs in June, from the revised 73,000 they brought on in May, the monthly report said. In general, government agencies have been shedding jobs as they grapple with budget pressures.

The report said that 14.1 million people were out of work in June, among them 6.3 million who have been jobless for six months or longer. In May, the total number of unemployed people was reported as 13.9 million, with the long-term unemployed at 6.2 million.

The numbers showed the continuing challenges of adding jobs to the economy even at a rate that keeps pace with population growth, two years after the official end of the longest economic downturn since the Great Depression.

Friday’s report showed that 39,000 government jobs were cut in June. The previous month, 28,000 local government and 2,000 state jobs were cut, as states and towns dealt with tighter budgets.

Analysts surveyed by Bloomberg News predicted that the report would show the economy added 105,000 nonfarm payrolls in June and that the unemployment rate would remain unchanged from May, when it had edged up from 9.0 percent in April.

The monthly jobs report is seen as a gauge of how well the nation’s job market is restoring the more than eight million jobs lost during the recession.

The Labor Department said that following gains that averaged 215,000 jobs per month from February through April, employment has been “essentially flat” for the past two months.

Some of the economic data for the nation has been showing a general improvement in recent weeks. Consumers, still struggling with debt, are seen as slowly recovering from a hesitation to spend, a turnaround that could inspire more hiring. A survey of 25 of the nation’s largest retailers on Thursday showed a surprising vibrancy, with sales in stores open at least a year up 6.5 percent in June.

But other recent reports have disappointed, such as those tracking trends in consumer sentiment, factory sales and the housing sector. Economists have ratcheted down their forecasts for the overall growth of the economy, with some estimating an annual rate of about 2 percent or slightly more for the second quarter.

On Thursday, the government said initial jobless benefit claims declined last week, even though they remained above the 400,000 for the 13th consecutive week. Also, a survey derived from company payrolls by the company ADP showed on Thursday that the private sector added 157,000 jobs in June, above the 70,000 that economists had predicted the survey would show.

The Labor Department’s report on Friday showed that payroll cuts hit some sectors harder than others in June. Most of the increases in nonfarm jobs came from leisure and hospitality businesses, where 34,000 jobs were added in June, and in the professional and technical services sectors, which added 24,000 jobs. Manufacturing, which lost a revised 2,000 jobs in May, showed a gain of 6,000 jobs in June.

The average workweek was 34.3 hours in June, compared with 34.4 hours in May, while average hourly earnings fell 1 cent to $22.99 in June.

The median length of time the unemployed had been out of work was 22.5 weeks in June, up from 22 weeks in May.

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