The US trade deficit with China will hit a record $300 billion for the year, a big hit to the economy. It’s politically convenient to blame China, particularly its yuan policy. But the driver is a broad strategy by US corporations to shift an increasing range of economic activities to China. And now a trade war has broken out. Politicians, have a word with your corporate sponsors!
Jobs
The Shriveling Middle Class In California
by Wolf Richter • • Comments Off on The Shriveling Middle Class In California
An ominous trend picks up speed: the middle class is shriveling. In 1980, 60% of Californians lived in middle-income families. By 2010, only 47.9% did, according to a study by the Public Policy Institute of California. Main culprits: declining incomes and disappearing jobs. And where the heck is the recovery?
The Inexplicable American Consumer Strikes Again
by Wolf Richter • • Comments Off on The Inexplicable American Consumer Strikes Again
Consumer confidence indices have collapsed to levels not seen in years or even decades. Yet the toughest creature out there that no one has yet been able to beat down struck again. Consumer spending increased at an annual rate of 2.4% during the third quarter, though the mood has become outright morose since.
The Brutal Trade Deficit
by Wolf Richter • • Comments Off on The Brutal Trade Deficit
At $46 billion in August and a hair-raising $376 billion year to date, the trade deficit is a powerful descriptor of what’s wrong with the U.S. economy. By year end, it will amount to half a trillion. Economic activity gone overseas. The cause: an ancient and valid business principle that is now harming the overall economy.
Snapshot Of Our Calamity Economy
by Wolf Richter • • Comments Off on Snapshot Of Our Calamity Economy
Obama: Gut Social Security Now, Don’t Wait Till The Election
by Wolf Richter • • Comments Off on Obama: Gut Social Security Now, Don’t Wait Till The Election
Let’s Just Raid Social Security
by Wolf Richter • • Comments Off on Let’s Just Raid Social Security
In the Bowels the Jobs Report: 15.4 Million Missing Jobs
by Wolf Richter • • Comments Off on In the Bowels the Jobs Report: 15.4 Million Missing Jobs
Hatchet Jobs
by Wolf Richter • • Comments Off on Hatchet Jobs
The litany of layoffs among the largest banks continues. And it’s ugly. After announcements and rumors from Wall Street, the first European banks have come out to air their dirty laundry. And now, per the Financial Times, Royal Bank of Scotland (RBS) is adding 2,000 layoffs to the list. 63,000 by eight European banks so far. Something big is afoot.
Unholy Alliance
by Wolf Richter • • Comments Off on Unholy Alliance
The President’s Council on Jobs and Competitiveness has descended on Palo Alto to meet with the usual suspects in Silicon Valley. Their topic, hilariously: How the public and private sectors can team up to create jobs. Hilariously because California—Silicone Valley in particular—has been on the forefront of transferring jobs to China and other countries.
Remember him? Creating jobs in China….