Wednesday, April 20, 2011

The Next Employment Bubble?

April 19, 2011
Restaurant Industry Accounts for Nearly 10 Percent of U.S. Workforce

The restaurant industry is not only an important source of jobs and careers, it is vitally important to the success of many other industries in the economy. As McDonald’s celebrates its National Hiring Day by adding up to 50,000 individuals to its roster, the National Restaurant Association has compiled a report of its research on the latest restaurant industry employment trends and the unique upward mobility that the industry offers.

It's like something the National Association of Realtors would have written just a few years ago to show us just how important their industry is to the United States economy.

June 3, 2010
Cumulative Trade Deficit Nightmares

Note that neither increasing the number of US housing units nor increasing the number of US restaurants can do much to alter that chart.

I am therefore 100% convinced that neither building each other even more homes nor serving each other even more food will do anything to address our long-term structural problems.


mab said...


We don't just send dollars to the Middle East for oil. The U.S. provides military protection to the Saudi Royal Family (Saudi Gov't).

That said, the global eCONomic and political situation seems very fragile. Somehow, "saving" the system of extractive credit creation doesn't make me optimistic. A system of Gov't sponsored usury cannot last imo.

Stagflationary Mark said...


We also offer important "intel" to China. Literally. Sigh.

April 20, 2011
Obama: We don’t want next Intel born in China

April 16, 2011
China to give "strategic" support to microchip sector: Xinhua

October 26, 2010
Intel opens first chip plant in China

mab said...

We also offer important "intel" to China.


Even if we had balanced trade, I still don't see where the jobs are going to come from. Less work and more free time seems like a natural outcome. But then there is all this debt we have to deal with. The same debt that Wall St. marketed as "wealth".

We know that the Fed won't let the banksters be the bagholders. I don't think the Fed will stick foreigners with big losses either, although it is a possibility. That leaves wage earners imo.

The beatings will continue even if morale improves, sigh.

Stagflationary Mark said...


The beatings will continue even if morale improves, sigh.

The debt slaves will be punished for the sins of their masters.

None of us are free with an exponentially rising national debt. There will eventually be consequences. Sigh.

mab said...

None of us are free with an exponentially rising national debt. There will eventually be consequences.

I'm not so sure. Our problems stem from private debt, not public debt. I'm not saying that our national debt won't become a problem. It certainly could. I'm just pointing out that a high public debt isn't always a problem.

Japan has an enormous public debt and yet they have the lowest interest rates in history, stable consumer prices and an appreciating currency.

After WW2, the U.S. had a very large public debt and things turned out just fine.

It's not the size of the national debt that worries me, its what we are using it for that bugs me. We're creating national debt to bailout fraud and prop up an extractive private debt money system. That's not good. The knowledge of stewardship has been lost - bought off actually.

To make matters worse, we're fostering a welfare state. I was just in Puerto Rico and learned that 60% of the population is on some form of welfare. Unbelievable. They're #1 industry is finance - go figure. Apparently Gov't corruption is very high. Tourism and farming are the 2nd and 3rd largest industries.

The notion that private industry would start creating jobs if the Government would only stop spending is ludicrous. The days of private industry being self sufficient without Gov't spending are long gone imo.

There are over 10,000 lobbyists in D.C. and none of them are asking CONgress to spend less. They're pushing for CONgress to spend less on others and more on their CONstituents.

I still see a Japanese style stagnation. Who can say for sure? Whatever the actual outcome, I'm pretty certain the majority of Americans are in for tough sledding. Our cost structure is too high in the global eCONomy.

As long as extractive finance is rewarded, the beating will continue!

Charles Kiting said...

McDonald's sees where they can make a difference. The cost of real estate is dropping, the cost of labor has remained constant, the prices of raw materials and the prices the consumer of their product expects to pay is going up. So they can afford the extra labor. Which is, what, 0.1 add'l employees per store?

They'll all get downsized once Congress jacks up the minimum wage again.

My verification word is extratin. Apparently the price of tin is low.

Stagflationary Mark said...

Charles Kiting,

Burned out shells for the win. Sigh.

Stagflationary Mark said...


Government Cash Handouts Surpass Tax Revenues

mab said...


I've been thinking about the chart in this post and I don't think it does justice to our eCONomy.

We're not just exporting our dollars, we're exporting jobs too!

This crap wouldn't be possible if international trade was settled in bullion. It's only possible because the eCONomic profession has been thoroughly corrupted and now serves the wealthy minority in the extractive finance business. Today's mainstream eCONomists are propagandists.

Again, as long as extractive finance is rewarded, the beatings will continue.

Stagflationary Mark said...


"This crap wouldn't be possible if international trade was settled in bullion."

I hear that. It also wouldn't have been possible if we had turned "protectionist" the instant we started running a trade deficit. There would not have been a trade war over a few dollars. Of course, many people profited because we ran a trade deficit. They did not have a vested interest to see it stop. Sigh.

The trade deficit is huge now. The beast has a life of its own. We must eventually slay it. There is no other choice. Much pain coming.

Anonymous said...

OK, I think its not as bad as the chart says.

1) We do export a lot of stuff, just not cheap consumer goods. College educations, for example. Our schools are full of rich Chinese spending their money on getting a degree.

2) We sell software and systems...and its getting slightly harder just to copy them. Chinese want a real iPod not a copy.

3) We do sell products, like medical equipment, planes, etc. Its not just a one way street.

I suspect if China quite playing mercantilist, and paid for their software and movies, we'd probably be close to break even,,.