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The Talladega Economy

No Amnesty
Last month the US economy created 74,000 jobs, according to the government. This was the weakest month for job growth since January 2011.

The creation of 74,000 jobs (many in the government sector we might add) is the equivalent of filling the stadium for the Michigan State Spartans – but falls far short of a capacity crowd of over 100,000 for the University of Michigan Wolverines or Ohio State Buckeyes.

And this level of job creation doesn’t even begin to make a dent in the number of people who have been unemployed for more than six months (nearly 4 million) or who have left the workforce entirely.

Some 2.9 million fewer Americans were in the labor force in Dec. 2013 than in Dec. 2012, and 525,000 American workers left the workforce in December 2013 alone. The “civilian labor force participation rate,” those working or looking for work fell to its lowest rate in 36-years – 62.8  percent – meaning some 91.8 million Americans are no longer working or looking for work.

This drop in the civilian labor force participation rate accounts in large measure for the drop in the unemployment rate to 6.7 percent.

In reality the unemployment rate is really more like 13.1 percent when you count the total unemployed, plus all marginally attached workers plus total employed part time for economic reasons, as a percent of all civilian labor force plus all marginally attached workers (the BLS U-6).

What’s the answer to the problem of getting all these American workers back into the workforce?

CNBC’s Jim Cramer says it is not the policies advocated by the Big Business – Big Government Axis that currently holds sway in Washington, and especially in the Republican establishment.

"These ideas of unlimited free trade with the Chinese and unlimited immigration have somehow become good, and I question that,” said Cramer. "By questioning that, there's a lot of people who are going to gun for me, but, at a certain point, we can't care. We have to look ourselves in the mirror."

"We all decided immigration's great. We have a series of trade deals that we've made with trading partners, including . . . major countries — Korea, Mexico — where we've gotten completely pantsed," Cramer said.

And this doesn’t even begin to account for the overhang of Obamacare and the new regulatory state that President Obama and his leftist allies on Capitol Hill have created since he was sworn-in in 2009. 

In a July 25, 2013, editorial titled “The Inequality President,” The Wall Street Journal nailed it: “For four and a half years, Mr. Obama has focused his policies on reducing inequality rather than increasing growth. The predictable result has been more inequality and less growth.” The Journal concluded that “no President has done worse by the middle class in modern times.” (Hat tip to Forbes contributor Henry I. Miller.)

What level of job creation would it take to get those workers who have left the workforce back into jobs?

At 74,000 jobs a month – or filling the Michigan State Spartan’s stadium every month – our economy is actually losing ground. With the “civilian labor force participation rate” at its lowest level in 36-years it would take filling the 174,000 seats at NASCAR’s Talladega Superspeedway every week for more than a year just to get us back to even.

And yet the Republican establishment and the cheap labor wing of Big Business want to continue to suppress wages and job growth for American citizens by granting amnesty to millions of illegal aliens and opening the borders to more low-skilled immigrants? 

As Jim Cramer told our friends on NewsMax TV’s The Steve Malzberg Show, "Can we just help people get jobs who live here?”

To help rebuild the American economy it is absolutely vital to the future of your country that you contact your Representative to demand that he or she sign the ConservativeHQ “No Amnesty Pledge” before the January 23 House Republican retreat begins. Please click the link to start rebuilding the American economy today.

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