Every time there is a bump upward in the job numbers, the president takes credit. Bush did it, so did Obama, and now Trump.
There is an incredible spirit of optimism sweeping the country right now—we’re bringing back the JOBS! pic.twitter.com/BNSLvKiEVj
— Donald J. Trump (@realDonaldTrump) March 6, 2017
Trump said the spike is due to his policies and the positive reaction of the business community to his election. All of this after less than two months in office.
President Donald Trump was happily accepting responsibility for the hiring surge in the private sector that took place last month. He took to Twitter to cite a LinkedIn jobs report published last month, and CNBC confirmed the jobs growth in a report Wednesday morning.
The private sector’s hiring grew by nearly 300,000 jobs in February. That figure included more than 100,000 positions with companies that produce goods and 66,000 jobs in construction. Those numbers exceeded predictions by more than 100,000 jobs.
Trump is relying on government data which is notoriously misleading. The government’s job figures exclude millions of people, including those who are working part-time but want to work full-time. The unemployment figures also don’t take into account millions more who have stopped looking for work.
“There is a growing surplus of unemployed workers,” Harry Brill wrote in January after The New York Times celebrated “full employment,” which it attributed to Obama. “As the NY Times article acknowledges, millions of workers have stopped looking for work because they have been unable to find jobs. But they haven’t disappeared. These discouraged workers, who exceed 2 million, are ready, willing, and able to work. If they were included in the unemployment figures, as they should be, the official unemployment rate would climb from 4.7% to 6.1%.
Also, about 6 million workers are employed part-time because they are unable to obtain full-time jobs. Many employers, who want to escape the costs of fringe benefits and pay lower wages, split full time jobs in half, which creates two jobs out of one. During the first week of every month the Department of Labor’s Bureau of Labor Statistics (BLS) reports the number of new jobs that have been added to the economy. The BLS exaggerates the growth in the number of new jobs because it includes these newly created part-time jobs that do not reflect any economic growth at all.
According to John Williams’ Shadow Government Statistics, however, that number is far too low. After “discouraged” workers are added to the mix, the unemployment rate is actually 22.9%. At the height of the Great Depression, the unemployment rate was 24.9%, according to official figures.
Trump said he will renegotiate NAFTA and has excoriated companies for moving overseas and taking advantage of slave-like laborers in China and other Asian third world hellholes. Left out of all the talk is the fact those jobs are never coming back, not unless the federal government sweetens the deal with tax cuts and other incentives.
Trump said after the election he will add “25 million new American jobs in the next decade,” but did not elaborate how this will happen. He added the government will “bring good-paying jobs to our shores and support American manufacturing, the backbone of our economy.”
The backbone of the economy is in the service sector, not manufacturing.
“Lots of jobs are being created in home care, personal care, care for the elderly. One could imagine lots of jobs being created in helping young kids, sports, entertainment. We are a luxury economy in one sense. We have a lot of leisure, a lot of elderly who can retire, and a lot of demand for personal services,” the economist Jeffrey Sachs told BuzzFeed in February.
“Those jobs will continue, but they won’t be high-paying jobs. The issue isn’t the number of jobs, it’s the wages those jobs will command.”
The government can create jobs by getting out of the way of business, removing burdensome regulations and punitive taxation.
Trump signed an unconstitutional executive order in January that will supposedly reduce and eliminate business regulation. Left unmentioned is the fact much government regulation is mandated by legislation and cannot be eliminated by simply scribbling a signature on an EO.
Moreover, Trump has said many regulations will be exempt from the announced cuts. The categories include “national defense” (military industrial complex sweetheart deals) and those related to “national security,” including the police and surveillance state.