Former OMB Director David Stockman Speaks About The Economic Recovery Myth
Posted By thestatedtruth.com on December 4, 2010
Federal, State and Local City workers are about to see related  jobs destroyed. This has never…read never happened before. Governments at every level are broke. This is going to end badly. It will take a while, but it will end badly. There simply isn’t economic growth when this happens. Period! A few years down the road, everyone will understand, but for now……denial is the word of the day.  The leader of the denial pack have been elected officials,  out only for themselves.Â
As director of the Office of Management and Budget under Ronald Reagan, David Stockman knows a thing or two about trying to balance the national budget.  This 10 minute presentation by former OMB director David Stockman on the CNBC’s strategy session left the hosts somewhat speechless.
Definition of OMB….The Office of Management and Budget (OMB) is a Cabinet-level office, and is the largest office within the Executive Office of the President of the United States (EOP).
Among his observations: the government sector for the first time in history is shrinking: “the reason is that governments are broke… we are going to have to cut back government employment.” And it gets scarier: “if you take core government plus the middle class economy (65 million jobs), that’s the breadwinning economy, if we take some numbers – how many jobs in the “core economy” in November – zero; how many jobs since last December: net zero; how many jobs since the bottom of the recession in June 2009: still a million behind from when the recession ended.” As to whether the economy can grow without employment growth: “I can’t imagine how it can because employment growth generates income growth which is the basis for spending and saving ultimately and we are not getting income growth out of the middle class.” And the stunner: the job “growth” has come almost exclusively from the part-time economy (two-thirds). Why is this a major problem: “there is 35 million jobs in that sector, with an average wage of $20,000 a year: that is not a breadwinning job, you can’t support a family on that, you can’t save on that. Those jobs will not generate income that will become self-feeding into spending.” “I can’t explain the market… I don’t know what it is pricing today, I don’t think the market discounts anything anymore, it is purely a daytraders’ market that is trading off the Fed, trading off the headlines. One day it is manic, the next day it is depressive, and we can’t draw any conclusions.”
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