On Friday Reuters reported that non-government payrolls rose only slightly in June and overall employment fell “for the first time this year … indicating the economic recovery is failing to pick up steam.” This report followed several others last week indicating weakness in consumer spending, housing, and manufacturing which “have heightened fears [that] the economy could slip back into a recession.”
After strong criticism of the U.S. dollar in recent weeks from world leaders, the United Nations added more pressure with yet another scathing report calling for a new international reserve currency issued by the International Monetary Fund.
The New York Times reports that many factories are ready to hire workers, but that applicants for jobs lack the skills in math and science to be productively employed in these good, high-technology jobs. Is this because government in America “invests” too little in education?
One ironclad rule of government programs is “if you subsidize something, you will get more of it.” Thus, paying poor, unmarried women to have children increases the number of children in single-parent families, and paying farmers to grow corn increases the amount of corn cultivated.
As credit and economic activity continue to contract, analysts are warning of big problems and unprecedented fiat-money creation by the Federal Reserve System in the near future.