More economy ‘good news, bad news’ from the Biden administration

The US Bureau of Labor ended the first week of 2024 announcing good news, bad news.

Good news.

Total nonfarm payroll employment increased by 216,000 in December, and the unemployment rate was unchanged at 3.7 percent, the U.S. Bureau of Labor Statistics reported today. Employment continued to trend up in government, health care, social assistance, and construction, while transportation and warehousing lost jobs. 

President Joseph Biden (D) gushed:

Our economy created 2.7 million new jobs in 2023 while the unemployment rate was consistently below 4%.

That’s more jobs than during any year of the prior Administration.

This morning’s report confirms that it was a great year for American workers.

— President Biden (@POTUS) January 5, 2024

Well, yeah.  But…yeah, there’s is a big but!  While not downplaying those jobs’ importance, most of the new employment was in government and health care and social services–related jobs, which are supported by taxes paid for by private, wealth-generating, tax-generating jobs in the private sector, which declined — e.g., transportation and warehousing jobs.

Wait…more buts to the seemingly good news.  Bad news.

The number of persons employed part time for economic reasons, at 4.2 million, changed little in December but was up by 333,000 over the year. These individuals, who would have preferred full-time employment, were working part time because their hours had been reduced or they were unable to find full-time jobs. (See table A-8.) The number of persons not in the labor force who currently want a job edged up to 5.7 million in December and was up by 514,000 over the year. These individuals were not counted as unemployed because they were not actively looking for work. …

The average workweek for all employees on private nonfarm payrolls edged down by 0.1 hour to 34.3 hours in December. In manufacturing, the average workweek was little changed at 39.8 hours, and overtime remained at 2.9 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls edged down by 0.1 hour to 33.7 hours. (See tables B-2 and B-7.) The change in total nonfarm payroll employment for October was revised down by 45,000, from +150,000 to +105,000, and the change for November was revised down by 26,000, from +199,000 to +173,000. With these revisions, employment in October and November combined is 71,000 lower than previously reported. (Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.)

Oh.

So how are all these workers being paid?  Borrowing.  Loans.  Lots and lots of them.  As public broadcasting (PBS), paid for with your tax dollars and donations, explains:

U.S. national debt hits record $34 trillion as Congress gears up for funding fight

WASHINGTON (AP) — The federal government’s gross national debt has surpassed $34 trillion, a record high that foreshadows the coming political and economic challenges to improve America’s balance sheet in the coming years.

The U.S. Treasury Department issued a report Tuesday logging U.S. finances, which have become a source of tension in a politically divided Washington that could possibly see parts of the government shutdown without an annual budget in place. …

“So far, Washington has been spending money as if we had unlimited resources,” said Sung Won Sohn, an economics professor at Loyola Marymount University. “But the bottom line is there is no free lunch,” he said, “and I think the outlook is pretty grim.”

The gross debt includes money that the government owes itself, so most policymakers rely on the total debt held by the public in assessing the government’s finances. This lower figure — $26.9 trillion — is roughly equal in size to the U.S. gross domestic product.

Last June, the Congressional Budget Office estimated in its 30-year outlook that publicly held debt will be equal to a record 181% of American economic activity by 2053.

Oh.

$34,000,000,000,000.  That is what 34 trillion looks like in real numbers.  Twelve zeros.  Or to make it more comprehensible, 34,000 billion.  Or as the late Senator Dirksen (R-Ill.) may — or may not — have understood, “a billion here, a billion there, and pretty soon you’re talking real money.”

Oh, again.  Real, real money, meaning something like this:

Akabas said, “There is growing concern among investors and rating agencies that the trajectory we’re on is unsustainable — when that turns into a more dire situation is anyone’s guess.”

Oh.  Other than that, have a nice day. 

But after the nice days, many more bad days are coming.  Many.  Be prepared.

And by the way, Mrs. Lincoln was not confronted with the mythical question. 

It’s something people say when someone has made an idiotic remark. Usually something hideously insensitive or inappropriate.

A description of President Joseph Biden (D).

Image via Picryl.