May 27, 2018

Trump and His Supporters Make the Bubble Economy Great Again

blowingbubbles“Well, you know, the participation rate is going to go down over time because all these boomers are retiring,” said Jon Hilsenrath on Fox Business’ “Mornings with Maria” Friday. Hilsenrath, a frequent guest, was referring to the labor participation rate, which measures the overall percentage of workers who are presently employed. It differs from the unemployment rate in that the latter only counts those actively looking for work.

The Participation Rate

Hilsenrath’s statement would have been rather uncontroversial if it weren’t for the previous, eight-year cacophony from conservatives on how falling unemployment numbers were misleading. After every jobs report during Obama’s presidency, Republicans would, without fail, point out falling participation rate numbers, concluding, “People aren’t going back to work; they’re just giving up looking for work.”

While there undoubtedly were some conservatives who acknowledged that some part of the participation rate decline represented people who were just retiring (perhaps even Hilsenrath himself), this writer never heard it mentioned on a conservative program once. Not a single time in eight years.

Perhaps aware of the context, Hilsenrath went on to say, “The fact that it’s held steady is a sign that people that aren’t aging, you know, older people, are coming back into the labor force and that’s a good sign. I’m watching the unemployment rate today. We talked about this earlier. If it goes below four percent, then that shows me an economy on fire.”

Not to pile on, but even the participation rate “holding steady” began during Obama’s presidency, the last dip below 63 percent coming in 2015, followed by a recovery to 63 percent in early 2016 that has held steady ever since.

The President Doesn’t Really Matter

This is not meant as an endorsement of Obama’s economic policies nor necessarily criticism of President Trump’s. Rather, it is an acknowledgment that long-term trends in these metrics haven’t really changed since 2010, other than a leveling off in the labor participation rate, and neither president has had much to do with them, regardless of what they or their supporters would like you to think.

Read the rest at Foundation for Economic Education…

Tom Mullen is the author of Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty and the Pursuit of Happiness? Part One and A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

>Life in the Post-5/7 America

>We have spent the past seven years in a “post-9/11 world.” We started hearing this insidious slogan not long after the terrorist attacks occurred. To translate the slogan for anyone who has not realized what it means, it means this: Whatever was left of your personal liberty before the 9/11 attacks is no longer a privilege your government can afford to grant you (and make no mistake, your government considers liberty a privilege, not a right). It seems that personal liberty is something that was nice in the Old America, but is just impractical in a “post-9/11 world.”

Of course, the struggle for economic freedom was lost decades ago with the onset of public and corporate welfare, the abolition of the gold standard, and the emergence of the American Empire. However, as with the other “civil liberties,” some traces of the economic freedom of America’s former Republic have survived several decades into America’s post-WWII social democracy. Those last traces are about to disappear as well. The following is one way it could happen.

Why May 7th? There is no compelling reason for the exact day. However, it is the Thursday of the first full week after the next president’s first 100 days in office are completed. It may be just a coincidence, but cataclysms never seem to happen during those 100 days. Perhaps world market movers don’t do much until they get a feel for the new administration. Perhaps it is some kind of statist magic, left over from government sorcerers like Merlin or Morgan Le Fay. In any case, even the terrorists respected the first 100 days of George Bush’s administration before launching their attacks. So, I am going with the odds to say that the economic day of reckoning will not manifest itself until May 7, 2009 – the new “Black Thursday.”

Even if the American economy is already dead for all intents and purposes, an historic crash of the stock markets will officially signal the dawn of the new era. When it does, all pretense of the “possible moral hazard” accompanying massive government interventions into the marketplace will be dropped. We will be in a “post-5/7 economy,”[1] much like our “post-9/11 world,” and the last vestiges of your economic freedom will be lost, just as your personal liberty was lost after 9/11. Forgotten in debates regarding whether these interventions will be good or bad for “the economy” is the fact that each one amounts to stealing from someone – legal plunder because it is committed by government. Each new intervention, “unavoidable” because of the latest threat to the U.S./world economy, will cause three more problems for the government to solve with further interventions. Pointing out that the original problem was caused by a previous government intervention will be pointless. Free markets were a nice idea in the 20th century, but government control of the marketplace will be needed in a post-5/7 world.[2]

Despite the fact that government already treats the right to the fruits of your labor as a granted privilege, the small percentage Americans have been allowed to keep will seem relatively large compared to what they will be allowed after the big event. At that point, there will be a continual state of economic emergency that requires “Americans and Europeans to do more, not less,” as Barack Obama recently said in Berlin. There will be Housing in the New America and Universal Healthcare to be paid for, tens of millions of unemployed Americans to feed and clothe, and the “challenges of the 21st century (all created by government)” to meet.

Perhaps at that point it will occur to someone, somewhere, that none of this is necessary. Without the parasitic influence of a few thousand people, the other 300 million would naturally trade with each other to their mutual benefit, and would have little to fear from people thousands of miles away whom they would never think to bother themselves. It really is that easy. Americans can make a decision for freedom anytime they wish to, and rid themselves of the parasites once and for all. Hopefully, there will come a time when they will be easier to convince in the post-9/11, post-5/7 world.

[1] Whatever the actual date of the crash, simply insert it into the new government slogan and it works just as well.

[2] While it would be impossible in a Republic to enslave people with such nonsense as a market crash or a terrorist attack creating “a new world” where natural rights no longer exist, it is relatively easy in a Democracy, where only 51% of the people have to believe it for the scheme to work. This is just one reason why no politician refers to America as anything other than “a Democracy” anymore. Be suspicious of anyone who speaks likewise.

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