Where Are The Jobs Going To Come From?
I have friends inside the home building industry, who tell me that no matter what rosy scenario BS the Fed is peddling, the bottom has fallen out of the market. The industry folks are looking at 18-24 months of minuscule profits, dumping their inventories, and major cost cutting. And now Bloomberg tends to confirm that.
Last week, Business Week reported that our entire national private sector job growth in this country since Bush came into office has come from just health care and home construction. Every other sector has flat lined during the Bush recovery.
Since 2001, 1.7 million new jobs have been added in the health-care sector, which includes related industries such as pharmaceuticals and health insurance. Meanwhile, the number of private-sector jobs outside of health care is no higher than it was five years ago.
Sure, housing has been a bonanza for homebuilders, real estate agents, and mortgage brokers. Together they have added more than 900,000 jobs since 2001. But the pressures of globalization and new technology have wreaked havoc on the rest of the labor market: Factories are still closing, retailers are shrinking, and the finance and insurance sector, outside of real estate lending and health insurers, has generated few additional jobs.
So if housing construction jobs vaporize over the next 12-18 months, at a time when manufacturing dries up and only health care is growing, tell me again how the Bush tax cuts have helped us all?