by CalWatchdog Staff | January 7, 2012 10:11 am
One thing I keep blogging about is that the U.S. economy really has not grown in about 13 years. For example, there’s been no growth in median incomes in California.
A new chart, below, shows there’s been no net jobs creation at all in the United States the past 13 years. No wonder unemployment remains so high, although it did drop a little last month, to 8.5 percent nationally.
The chart shows that the smal increase in jobs so far in the 2010s barely has made up for the incredible loss of jobs throughout the dismal 2000s.
This explains the federal and state budget problems. When incomes and jobs growth stopped, governments should have stopped growing, too. After all, government is basically a parasite on the private sector. It taxes what private people and businesses produce. If that private production stagnates — as has happened for 13 years — then the only way government can “grow” is through deficits, tax increases and inflation; which is what we’re seeing.
As I also keep saying, if Gov. Jerry Brown wants to spend more money — his new budget seeks to spend another $6 billion a year — then he should improve the state’s business climate. More jobs, paying higher wages, translate into more taxpayers paying into state coffers.
But he’s not doing that. Instead, he’s seeking a $7 billion tax increase.
That would only make things worse by taking money from people and businesses who create jobs.
Jan. 7, 2012
Source URL: https://calwatchdog.com/2012/01/07/chart-shows-jobs-stagnation/
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