The governments headline said that 173,000 new jobs were added in August. What the headline number does not mention, and of course the American public will not be told is that an additional 261,000 Americans dropped out of the work force and were added to those not counted. Here is the story.
A record 94,031,000 Americans were not in the American labor force last month -- 261,000 more than July -- and the labor force participation rate stayed stuck at 62.6 percent, a 38-year low, for a third straight month in August, the Labor Department reported on Friday, as the nation heads into the Labor Day weekend.
The economic numbers around the world are not encouraging. The European Union is trying quantitative easing much like our Fed tried last year. Printing more money raised the stock market but did nothing for the economy except to delay the proper corrective action. Europe will learn the same thing.
China is trying to save its market by the government buying stocks and yet their market continues down. China is now about to pay the price for all of its artificial growth over the years. The whole world ultimately suffers.
The proper action for any government is to provide an environment for business to flourish. The government can do this by lowering its spending, reducing taxes on all entities, and stop needless and punitive regulating. Allow businesses to succeed or fail based on the competitive market place. Allow businesses to flourish by reacting to the demands of the consumers. History has proven that politicians, government bureaucrats, and academics have no idea how the economy or business works. That is because most of those people believe in the Marxist concepts. Engels told us that competition is destructive. Competition to capture the consumer and make profits is the very thing that brings a vigorous and expanding economy. It is capitalism that reduces poverty and raises the living standards for all.
Capitalism however does not enslave the individual to the government but frees the individual. Capitalism requires individuals who are self-reliant. Politicians, government bureaucrats, and academics rely on enslaved and those who are reliant on the government so they can prosper and move forward their agenda.