The weakest recovery in the nation’s history continues. On Wednesday, payroll processing firm ADP reported that private sector businesses created a disappointing 119,000 jobs in the month of April. Once again, to use a word that should embarrass those who support the Obama administration’s Keynesian economic policies, this meager total was “unexpected.
Economic “experts” surveyed byReuters had predicted at least 150,000 new jobs. “Nearly every industry has seen slower growth since the beginning of the year,” said Moody’s economist Mark Zandi. “Smaller businesses are experiencing much weaker growth.”
Most of the jobs were created in the service industries, which added 113,000 positions, while goods production accounted for the other 6,000. Both figures represented 7-month lows in growth. Adding to the misery, ADP’s March total of 158,000 jobs gained was revised downward to 131,000, and the latest data show the manufacturing sector, which lost 10,000 jobs, has plateaued, or may be slowing down again.
The level of economic weakness is daunting. According to Bespoke Investment Group, the seven year stretch of Gross Domestic Product (GDP) growth below three precent, occurring from 2006 to the present, represents the longest one since 1929, the year which marked the beginning of the Great Depression.
Still more manipulation is being pursued by the feds. They are going to revise how GDP growth is calculated. Research and development spending, as well as the capital value of all “intellectual property,” such as books, movies, records, television programs and plays—produced since 1929—will be added to the total. Michael Pento, founder of Pento Portfolio Strategies, cut to the heart of the subterfuge. “When GDP numbers are chronically bad and the labor force participation rate is perpetually falling, our government will do the same thing they did for the inflation data—tinker with the formula until you get the desired result,” he explained. CONTINUE READING