Armstrong Economics Blog/Economics R-Posted Feb 8, 2021 by Martin Armstrong
When we look at 2020, it will be a year most prefer to forget. Overall, productivity decreased 4.8% in Q4 2020 while unit labor costs increase sharply by 6.8% (annual rates) which is fulfilling what Socrates has been forecasting that this wave into 2024 will be inflationary. The December 2020 jobless rate was up over the year in 379 of 389 metro areas while what was really interesting is that payroll jobs were down in 232 metro areas. When we turn to compensation costs, that rose by 0.7% from September 2020 to December 2020 and it was up 2.5% over the year ending Dec 2020. Meanwhile, Gross job losses 20.4 million and gross job gains 5.7 million in the 2nd quarter of 2020. (see Bureau of Labor Statistics).
To put this in proportion, the total employment in government is about 21 million (Federal, State, Local). Therefore, the proportion of the UNPRODUCTIVE workforce is staggering (unemployed + government). The total civil workforce is about 160.57 million people in the United States. Therefore, the total UNPRODUCTIVE portion of the civil workforce is really comparable to 1932 and is now standing at about 25%. (far fewer people worked for the government in 1932 pre-New Deal)
The damage of the lockdowns which are really for climate change since Florida had fewer deaths with minimal lockdowns compared to New York which was virtually imprisonment. There are many studies showing lockdowns have failed. Freedom has become a luxury for the elite exclusively. Washington has been militarized because they fear a revolution when the sleeping sheep awake that this Great Reset is all about transforming capitalism into full-blown socialist authoritarianism and changing our way of life by incremental lockdowns that always manage to be extended.
Our greatest problem is that these world leaders are deliberately destroying the Western Economy and are clueless as to even how you would build back better and how long will it take to create this fictional world that they have been sold coming out of the World Economic Forum orchestrated by academics with no practice experience to accomplish something that has NEVER been done since the failure of Marx and his utopian vision of Communism. Who will direct the build back? Bureaucrats with also no practical experience.
Those who have questioned our computer forecasting the shift from the West to Asia and China will become the #1 world economy and the new Financial Capital of the World, better wake up and smell the coffee. Our computer will be ABSOLUTELY correct and this is by no means my personal desire nor opinion. If you want to prove me wrong – then get off your ass and be heard. Otherwise, start learning Mandarin.