Record 90.5 Million Out Of Labor Force As Half A Million Drop Out In One Month; Labor Force Participation Rate Plunges To 1978 Levels
Submitted by Tyler Durden on 09/06/2013 08:47 -0400
Look at this stuff from zero hedge. It shows a massive fall in the number of people participating in the economy, or should I say participating in the open economy. An ever increasing proportion of the workforce is simply disappearing off the books, to levels last seen in the late seventies when the cult of Monetarism was introduced.
‘the Labor Force Participation Rate declined from 63.4% to 63.2%: the is the lowest print since August 1978!’
I am coming to understand that this question of participation is of fundamental importance.
Consider this proposition: That the fundamental difference between Catholic and Germanic economies in Europe is the amount of labour participation in their respective economies.
In Greece, Italy, Ireland, Spain and Portugal, economies have been characterised by the relatively large amount of non state sanctioned economic activity, in other words low participation as defined by Monetarists. This has shown itself in low tax collection rates and perhaps more importantly the difficulty in understanding the real composition of these economies and predicting what will happen to them.
This explains the accusations of fraud while joining the Eurozone that were levelled as a result of the Credit Crunch. Credit agencies and governments simply did not know what people were really up to in these economies. Now these are the economies that the Germans want to reform- they want to increase participation but on Monetarist terms.
I have written previously about post Germanic war policies in Europe and the Saxon Axis to encourage participation in the economy and how they differ from the new forced participation policies.
This is a much more useful way of understanding developments since the Second Germanic War than left or right or Keynesianism or classical economics.
Because it allows us to see past the nonsense of a two party system or opposing political blocs. Now we can see that both sides of the mainstream political spectrum are concerned with achieving high levels of participation and the political and economic argument, such as it is, is about the best method to achieve this.
I would like to propose this prototype of a Spectrum of Participation as a way of understanding contemporary political and economic forces:
Maximum Monetarist participation (Formally known as Neo-Con/Liberal or ‘right wing’)
No use of cash.
Minimal discretionary spending.
Private provision of everything.
Complete integration of activity.
Social participation (Formally known as Keynesianism or ‘left wing’)
No use of cash
State provision of health education etc
Complete integration of activity
None participation (Broadly known as ‘Libertarian’)
Use of gold as store of wealth
This is not a linear spectrum- drop this crap about left right etc.
These three types are arranged as the points of an equilateral triangle.
WE MUST DROP THIS IDEA OF A LINEAR SPECTRUM OF POLITICAL THOUGHT THIS IS THE SINGLE MOST IMPORTANT POINT TO UNDERSTAND.
Back to Zero Hedge:
‘Whether or not this means the Fed will continue QE at this point is largely irrelevant: what is more relevant is that the Fed so far has failed miserably at its core mandate: to boost real employment.’
At least we understand the priorities of the fed a little clearer now. We can now clearly see that participation is a major strategic objective of the Monetarists. We can say with certainty that their next moves will be aimed at this end.
By the way, I would now like to formally proclaim the end of the consumer society