Once again Mish has found an astounding article about changes in the labor market by Mike Mandel on his blog, Mandel on Innovation and Growth. The blog has a great Blog Roll as well.
In a column called A Decade of Labor Market Pain, he posts some fascinating charts comparing the growth of public and quasi-public sector jobs with the decline in private sector jobs since 2001.
That pretty much shows why we have continued to slog along at 8% to 10+% unemployment for the past several years. The charts make clear to IFO that the U.S. is headed for collapse, as the number of people paying the salaries shrinks as the number of people collecting those salaries grows. At some point, whether the Fed prints money or any other alleged fix occurs, if those trends don’t change, it will be all over for us.
Only ten states’ private sector jobs grew in that decade, while in all the other states the jobs declined. Most of the winning states, ironically, were places where natural resources haven’t been entirely shut down by environmentalists.
We do remember back in the 1970s, it may have been, that we read a news article in the Intl Herald Tribune noting that more than half of the Dutch population was on the dole in one way or another. Haven’t kept up with them since then, but it appears that importing foreign workers to do the work the Dutch weren’t doing may have saved the country from economic collapse, only to see a rise in social unrest.
It’s funny about cheap, imported, foreign labor. There’s always another side to the story. European governments are beginning to realize the fix they’ve gotten themselves into with this short-term fix to a long-term problem.
Hat tip to Mish, who doesn’t mince any words on the labor topic.
Who is Doing all the Whining?
Who is doing all the whining and all the pissing and moaning? The answer of course is those who fared the best in the last decade: the police and fire unions, the teachers’ unions, transit unions, and public unions in general.
Many in private sector fields have been hammered silly with rapidly rising healthcare costs and lower paychecks (assuming they have a job at all). Meanwhile those with the most benefits and those who have suffered the least are the ones unjustifiably bitching to high heavens about how unfairly they are being treated.
He’s even losing patience with police and fire people. When they lose our respect, our society will be really in trouble. Actually, we think that in major cities, police have already lost a lot of respect, maybe unfairly, but maybe not.