The Collapse of the US Economic System


NO JOBS

The Great Recession actually started in November 2007 as that was the month that jobs in the US started to decline from their peak in the previous month October. The collapse in the financial markets started 12 months later in October 2008 just prior to the presidential election. This analysis is intended to show what was in place at the peak October 2007 compared to today May 2014. In this analysis we will use only official government data; however it will be adjusted to reflect TOTAL Employment not just what the Bureau of Labor Statistics (BLS) shows each month with their employment status report. They don’t report the farmers, the self-employed and the military; although those numbers are available, so we just add them to the BLS numbers to get a truer picture of “all” the people earning a living.

All these numbers can be found on the BLS website the most current is USDL-14-0987

For the peak October 2007, the population of the country was 301,811,120 and the BLS showed in their Table B-1 that there were 138,361,400 working comprising 50.04% of the populations in the following three major Categories:

Goods Producing            22,266,000     7.38%
Services                         93,767,500    31.07%
Government                   22,327,900     7.40%
TOTAL BLS                     138,361,400   45.84%

Next we add in the jobs the BLS doesn’t count.

Self Employed                  9,060,900     3.00%
Agriculture                       2,218,100       .73%
Military                             1,418,200       .47%
TOTAL                             12,697,200      4.20%

GRAND TOTAL               151,058,600     50.04%

For May 2014 53 months since the end of the recession the population of the country was 318,138,408 and the BLS showed in their Table B-1 that there were 138,462,300 working comprising 47.22% of the populations in the following three major Categories:

Goods Producing            19,009,000      5.98%
Services                          97,583,900    30.67%
Government                   21,869,400      6.87%
TOTAL                           138,462,300     43.52%

Next we add in the jobs the BLS doesn’t count.

Self Employed                  8,375,000      2.63%
Agriculture                       2,011,000        .63%
Military                             1,400,900        .44%
TOTAL                             11,786,900       3.70%

GRAND TOTAL               150,249,200     47.22%

The difference between the two periods is, by the BLS numbers, that we now have 100,900 more jobs than October 2007 which is good; however if we add back in the agriculture, self-employed and the military we are still short 809,440 jobs. This means there are 809,440 fewer people without a paycheck today than in November 2007. Also note that there are more people in the government than in the goods producing sectors in 2007 and and a lot more in 2014, that just doesn’t seem right.

Making this situation significantly worse are two other factors; the first being that the population has grown by 16,327,288 so that means that there are 16,327,288 more people to be support by 800,000 fewer workers. The second being that since the highest paying jobs for the middle class, in the good producing sectors, are down 3,257,000 jobs from October 2007 and the self employed are down another 685,900 for a total of 3,942,900 fewer middle class jobs. Offsetting this is an increase of 4,043,800 jobs (100,900 jobs more) but they are mostly in the lower paying job categories like food services and temporary help

So the bottom line is fewer people working and those that are working are bring home less money. The shift of a large portion of the manufacturing sector to China and India over the past dozen years has decimated the American middle class and swelled the rolls of those dependent of the federal government for various forms of transfer payments from food stamps to disability payments.

NO ECONOMIC OR POLITICAL SYSTEM CAN SUSTAIN THIS TRANSFORMATION BEING IMPOSED ON THE CITIZENS FROM THE PROGRESSIVE POLITICAL WINGS OF BOTH MAJOR PARTIES. THINGS WILL EITHER CHANGE OR THE AMERICAN SYSTEM WILL COLLAPSE.

 

2 comments on “The Collapse of the US Economic System

  1. This decline in the middle class share in the economy has been a trend since the eighties. It coincides with the switch in the banking industry from investing to ‘looting’.
    Instead of building companies they have switched to purchasing them, stripping out assets and people (always classified as ‘overheads’ ) and demanding ever rising returns. Should the latter stall, then the company is ‘packaged’ as a buyout and sold to pension funds etc. or they look for some way to get a subsidy.
    The result is that the rich get richer, the middle class lose out, and the ‘working class’ get ground down. The stability in the economic system disappears, and ‘discredited’ economic systems are dusted off for a new life.

    Like

  2. Not much of an argument from me here on what you write as you are very aware of the situation.I was writing about. I was trying to keep it simple here for others not as well versed as you are.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.