Feed our Socialist Monster The latest jobs growth information just came in this week and looks as though there was an increase in job growth for the country. Job growth is important for political fuel so that Republicans and Democrats can beat each other up and contest one another with their sound bites. In an up and coming election, they will likely put the blame on one another. The truth is that neither party really creates a favorable economy, yes they can control spending. And what projects government decides to support, but the real growth is really determined by lending. Lending allows people to grow business and buy real estate. The unemployment reports are simply a method of how we view out retirement account and investment strength. A weak unemployment report ALWAYS affects the stock market. And in an election year, the incumbent political party can't afford to suffer any loss of popular support. So increase jobs in the areas that benefit government the most. Governmental growth is on the rise, 21.9 Million new jobs were created by state, local and federal government since 2010, this exceeds the total number of government jobs created in the entire 10 year span between 2000 and 2010. In short government does not want to look bad in an election year so they increase employment by making itself larger.
So what is really happening here is that if government gets larger and creates more social welfare or workfare then The United States is headed towards socialism. Government control of all businesses and real estate is the path towards socializing America. The stock market is only a method and a measure of the economic wellbeing of the country's wealth. So helping to manipulate the stock market through creating jobs that feeds itself and benefits the Federal government is the image that sells and shows the world that we are "stable and growing". All investors ought to know that marketing sells, what is the real content here? When the Federal government grows, it gets a discount, the taxes paid by Federal employees is a 30% cost savings for the government. So the Federal taxes that the "job growth" creates goes straight back to Uncle Sam. So you might consider the government job growth as a return on investment, with a 30% rate of return. Funding is also in an area where government can control its own business system. This is the Federal Government's business plan as an investor. Job growth for the government helps to aid their system; the Federal Government's employment system is leverageable, predictable and reproducible. Government is investing in their own system with each new hire. These new hires will also spend money in the areas that government wants to support and with the opportunity for these employees to gain an entitlement they will be loyal forever. Entitlements are the single most expensive line item in government spending, for state and Federal government. By creating more government jobs we are feeding the monster and headed towards a socialist state. With every bailout government owns more businesses and corporations; with every job they funnel more money towards their own fiefdom. GSE or Government Sponsored Enterprises such as Fannie and Freddy Mac is really the government's branch of real estate investment; they are in fact real estate wholesalers. We are becoming less of free market capitalistic state and looking more like a social democracy.
Investors often look towards strong job growth as an indicator of how well an area or in this case the country is performing. Many of the new jobs in this economy are lower paying service jobs. Without a doubt our economy is nothing like the last recession. In the recession of 1987, most of the jobs were being held in the manufacturing sector. These jobs have now gone over seas and we have entered the service revolution. The Industrial Revolution is now in India and China, so are the environmental issues as well. Real employment is becoming a lost cause and pipe dream. In my parent's generation people worked for the same job for 30 years, today the average employee's term at their new job is 2 years. Employers are not willing to commit and employees are jumping ship for $5000 increase in pay. There is very little loyalty at any level today. So in many ways job growth is a difficult fact to work with and is not always representative of the true state of employment. What kinds of jobs are being created? Is this long term or short term employment? The United State overcame the 1987 recession through manufacturing jobs and also technological advances in the computer industry. The Dot com bust was the speculators nightmare for many people that lost their retirement funds by playing passive investor and expecting stock prices to continue to rise. How many people lost their retirement funds again in the Great Recession of 2007? Right now the Dow is close to 13,000 again, and this will undoubtedly lull speculators again into a false sense of security. Wall Street makes money when economies rise and fall; they do it with OPM or your 401k money, your pension fund, your mutual funds. Passive investors are the real victims because they don't know or control their own funds and where the real money is invested on a daily basis.
The answer is to increase your own Financial Fitness and start becoming an active investor. Start by creating an investment plan for you, not the raiders on Wall Street. Stocks are technical enough to make most people think that they are learning something but the entire process is a scam. It is purely speculation that you will be able to sell your stock for more than what you paid for it. Invest for yourself by yourself and stop sending money to your financial planner or your 401k that is only looking to make a commission off your funds and Wall Street that wants to gamble with your money.