The BLS November jobs report is out and the news is good. It shows 146,000 new jobs and the unemployment rate at a 47-month low of 7.7%. Take that, scoffers at Keynesian economics.
Politico and several mainstream media outlets observe that the report provides the president with fresh ammunition and an upper hand in the fiscal cliff tug of war. Alan B. Krueger, chairman of the White House Council of Economic Advisers, is quoted by Politico as saying:
It is critical that we continue the policies that are building an economy that works for the middle class as we dig our way out of the deep hole that was caused by the severe recession that began in December 2007. Most pressing, President Obama has proposed, and the Senate has passed, an extension of middle class income tax cuts that would prevent the typical middle class family from facing a $2,200 tax increase at the beginning of next year.
Even investors responded favorably to the BLS report, with the Dow Jones Industrial Average ticking up slightly in morning trading.
So could it be that the road to salvation runs through Washington and bigger government? Well actually, yes. Terrence Jeffrey at CNSnews.com looked a little closer at the numbers and discovered not only that the government is responsible for adding the new jobs. The jobs are in government. Of all new civilian jobs created in the U.S. over the past five months, 73% are positions in the public sector. Notes Jeffrey:
In June, a total of 142,415,000 people were employed in the U.S, according to the BLS, including 19,938,000 who were employed by federal, state and local governments.
By November, according to data BLS released today, the total number of people employed had climbed to 143,262,000, an overall increase of 847,000 in the six months since June.
In the same five-month period since June, the number of people employed by government increased by 621,000 to 20,559,000. These 621,000 new government jobs created in the last five months equal 73.3 percent of the 847,000 new jobs created overall.
Well, this is terrific news indeed. All the nation needs to do to get over the economic hump is continue to hire people to work in the public sector. Needless to say, someone will need to pick up the tab for their salaries. Anyone for raising the tax rate on the rich to above 100%?