Looking behind the numbers Thursday's ADP report reveals an economy that is flat-lined, heading into recession.
When June’s numbers are compared to January’s, ADP’s total nonfarm private jobs growth has increased from 110 million to 110.9 million, a gain of 77-100ths of one percent, or about 142,000 new jobs each month. A closer look reveals that most of those jobs were in the highly volatile service sector, in small businesses, usually fast-food or similar businesses, known for their high turnover. In fact, the goods-producing sector gained just one half of one percent employment since January, translating into less than 16,000 job gains each month. These numbers are hardly a “hopeful sign,” but more reflective of an economy that has flat lined.
The number of workers receiving federal disability insurance payments has spiked by more than 26,000 over the past month, bringing the total sum up to a record 8,733,461, according to the Social Security Administration (SSA). Astonishingly, that number surpasses the entire population of New York City by more than 500,000.
Right to Work — allowing every person to choose whether or not to join a union and pay dues — leads to greater personal wealth, freedom, and jobs for workers. Put simply, Right to Work works, while the union shop, which encourages productivity-killing work rules and a hate-the-boss work environment, leads to economic stagnation and financial misery.
On Tuesday the Treasury Department announced that in May the federal government received tax revenues of $180.7 billion, the second highest for the month of May in history. Unfortunately, the government spent $305.3 billion, leaving a deficit of $124.6 billion. So far this year, deficits are at $844.5 billion and are on track to exceed $1 trillion for the fiscal year, the fourth year in a row.
Doing the math, the national debt is growing at a rate of more than $3 billion per day, or about $565 per household every month. At that rate the national debt will hit the debt ceiling of $16.4 trillion just a few days after the November election.
The release last week of the Federal Reserve’s much-anticipated three-year study of America’s finances, its Survey of Consumer Finances, confirmed what many families already know: Between 2007 and 2010 the average family’s net worth declined by nearly 40 percent, mostly because of the decline in housing prices. The Fed study also confirmed that their incomes also fell significantly in real terms, by nearly eight percent.