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Friday’s jobs report for July showed U.S. employers created 163,000 jobs last month -- the most in five months. So has the employment market started to improve?
NBCNews.com’s John Schoen joined us for a live web chat Friday to discuss the job market and the economy.
One reader asked:
“Which factor do you think is holding back job growth the most: uncertainty over the "fiscal cliff", Europe's struggles, or low consumer spending?”
John replied:
“The immediate cause is #3 – but it’s not clear just why consumers have pulled back. It may be for the reasons cited in the answer to the last question – slow wage growth, too much debt, more retirees living on fixed incomes – or they may be responding to worries about #1 and #2. They have good reason to be concerned. The fiscal cliff – a package of massive tax increases and spending cuts set to hit at year end – would almost certainly spark a nasty recession unless Congress finds a compromise.”
You can view the entire Q&A with John here:
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It certainly is NOT rocket science.
High unemployment is generally indicative of a LACK OF FUNDS, for example NO INCOME.
NO INCOME is generally indicative of an inability to spend.
An inability to spend is generally indicative of LOW DEMAND.
LOW DEMAND is generally indicative of a need to NOT PRODUCE PRODUCTS that won't be sold.
No production is generally indicative of a company with excess manpower.
Excess manpower is generally indicative of a company paring it's workforce to production requirements.
Of course the solution is for AMERICANS to buy American Made Products, which in turn generates a need to produce the goods for consumption which in turn means the AMERICAN company making AMERICAN MADE products needs to hire Americans to make the goods to be sold which in turn...........
You get the idea.
We CANNOT continue as a "service" based economy. We cannot continue to be the retail outlet for MANUFACTURERS around the globe.
America needs to repatriate and invigorate it's CONSUMER MANUFACTURING base.
I've said it before and I will continue to say it;
PRODUCER nations grow and prosper. CONSUMER nations wither and die.
Personally, I want to see AMERICA grow and prosper. To that end, I do ALL IN MY POWER to buy AMERICAN MADE PRODUCTS unless there is no alternative.
the world market, federal policy's, medical insurance, gas, food, shelter has soaked up all our earnings, savings and high credit card debt: however the Washington establishment thinks every thing is just fine, they have high salary's, medical insurance paid for, travel on taxpayer money, wined and dined by the lobbyist's; they are out of touch with America, there is a Revolution brewing and they do not see it, YET.
Absolutely right. Every time we make a purchase we vote. Consider voting for America every time. Any purchase of a product made in China is a vote for China and a vote against America. Even the smallest purchase of a foreign made product is a leak of American will. Please have pride in America.
American Industry ownership will not outsource manufacturing of products that are to be sold back to America if Americans will not purchase them.
American coal and oil will not be exported to China for energy to propell Chinese manufacturing of products that are to be sold back to American consumers if American consumers will not purchase those products.
When American industry is faced with manufacturing products for American consumers in America or go broke, then American industry will repatriate their various manufacturing, and American coal and oil will be used to make the energy to run the manufacturing engines.
That's what I've been saying. We need to boost consumer spending, to force companies to hire so they can meet the increased demand. You don't increase consumer spending by cutting taxes for people who already own everything. They don't use the extra money to create jobs, they use it to start more trust funds. You boost consumer spending by increasing the minimum wage, for people who don't already own everything. They'll use the money to buy things and that will create jobs.
Sorry.... the vast majority will continue to go to the big box stores and buy the imported stuff because they think it's saving them money.
Too many Americans just feel that if it doesn't benefit me "F" everyone else. It ain't my problem.
We definitely have the wrong leadership to turn this "buy American" dynamic around. Instead of tax breaks and small business tax holidays they are giving them tax increases and fisical cliffs. Instead of belt tightening on wasteful non-productive government waste, we have a POTUS who goes to foreign governments to promote more spending by government to buy votes. This government is doing a better job of disabling American business than an attack by foreign terrorists. The free money is going to dry up pretty quick under this POTUS.
Gregio... really stupid post. Has nothing to do with the President. People vote with their wallet... and the rich do also. Companies have more money in the bank and cash on hand than they ever have had... and if there was consumer demand, they would produce. Cat had the largest profits ever... and they want to have their US workers take a pay cut?.... that's big business for you!
Kevin, YOU are wrong and gregio is dead on. It has everything to do with the POTUS. His policies are stifling the US economy.
Need to put more people on welfare heh heh. Those people spend money like crazy, just go to any Wal-Mart store and see lol. In Eastern Washington state there are many on welfare and it's keeping the economy going heh heh. Heck, if one took welfare away, many of the stores would go out of business. The economy is based on welfare there heh heh.
Oh, and good luck buying American heh heh. Craftsman tools and Cargills are now made in China and we are paying American made prices for them lol. I know as I was thinking I was buying American until I looked at who made them heh heh.
Have a nice day America, I'll be around heh heh
Everything I'm wearing is American made.
I'm sitting in a chair made in America.
My coffee is in a cup made in America as is the entire dinnerware set.
My kitchen table and chairs are American made as is my Dining room set.
My living room is also furnished with American made products.
Of course it takes a bit of determination and looking, but you can find virtually everything you use with electronics being a glaring exception, made in America.
So, take your "heh heh" (is that the ostensible grown up version of LOL?) and shove it.
Consumer IS NOT holding back job growth; the financial markets are. Losses in markets; losses with consumers. Can't spend what you don't have. It's all part of Obamas socialistic plan. Take from the haves, give to the have nots.
Blame the consumers for Obama failure? Ha...consumers can spend what they don't have. No businesses, no jobs, poor economy.....why doesn't Obama own up to his failure ?? It's not the consumers...it's our country's leader --- Obama.
I am always hearing about "The consumer". I wish they would find that guy and make him spend some money.
Find his employer and make him pay some wages. Until then the consumer won't have any money to spend.
the fiscal cliff? That fix is in already. We know these guy jin congress will wink it up and it will business as usual. ANother trillion here another trillion there. Oh look at me ---we all need to cut except everything and anything. Consumers are dead because inflation has been nuts (for bernanke thats everything excluded except maybe tap water) . You go to the store and you drop a 100 on food without blinking. Companies haven't exactly paid more in wages the last few years.
Pathetic.
Average debt has begun increasing again, Americans are still saving less than those in other advanced nations, but it's not clear to this "expert"??? Is he one of those people who lives in "Richistan" - that part of American who don't have a clue how the average person lives?
Mirror, mirror on the wall, who's the poorest of them all? "Why its us!" cried the shrinking middle class. Lost our jobs, lost our houses, have no money for medical, gas or food. Fools, you wonder why the consumer can't buy anything, its because they have no money!
Remember how all those consumers used to buy all their toys, appliances and electronics on easy credit? Remember how they updated and modernized their homes with home equity lines? Well, now they can't pay off their debt, and there is no more easy credit available. They are making LESS money and everything they need to buy costs MORE money. They don't have enough money to pay off their debt on old stuff AND buy new stuff. So, duh, they are not buying more new stuff that they don't really need. They are holding on to that old TV and refrigerator until they break before getting new ones.