The Fed can create all the paper supply it wants, but it can't create jobs, and jobs are key to a sustainable economic recovery. Unfortunately, the credit crunch for small business and the job offshoring of large companies have precluded employment growth/stability. The most stunning fact in domestic private employment chart is that for the first time in our postwar history, there have been net private sector job losses on a rolling-10-year basis.
U.S Private Employment 10-year change
Bureau of Labor Statistics; Defiance Asset Management
We have a jobs crisis and are losing the economic battles to countries with lower compensation, lower taxes and less regulation. We cannot borrow and spend our way to prosperity as consumers. We cannot shrink our way to prosperity as an industrial policy. We need policies to incent innovation and productive job creation at home.
Historical Unemployment Rates vs. U6 vs. Part-Time for Economic Reasons Monthly
Bureau of Labor Statistics; Defiance Asset Management
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Robert Marcin is the founder of Defiance Asset Management, a private investment management firm. Client accounts managed by Defiance Asset Management often buy and sell securities that are the subject of commentary by Marcin, both before and after it is posted. Under no circumstances does this column represent a recommendation to buy or sell stocks. This column is intended to provide insight into the financial services industry and is not a solicitation of any kind. Neither Marcin nor Defiance Asset Management can provide investment advice or respond to individual requests for recommendations. However, Marcin appreciates your feedback; click here to send him an email.
Marcin is not required to update or held responsible for updating any portion of this column in response to events that may transpire subsequent to its original publication date.
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