U.S. Economy Adds Lots of New Jobs

In an article by Kevin G. Hall of McClatchy Newspapers, entitled "Despite Wall Street's nerves, U.S. economy adds lots of new jobs," the "growth" of the U.S. Economy is touted and rumors of an "economic slowdown" declared premature.

We are told that U.S. employers added 166,000 non-farm payroll jobs in October, according to the Labor Department. I'm sure the Republicans are happy that, once again, their economic theories have produced new jobs despite worries by Democrats that supply-side economics produce nothing of the sort.

But let's look at the new jobs. Buried at the end of the article is the following text:

"The services industry has added 368,000 jobs this year -- 65,000 new professional and business service jobs in October alone. The government, health care, leisure and entertainment, and education sectors all showed job gains.

"But "Manufacturing employment fell by another 21,000 jobs to 203,000 lost for the year."

Manufacturing employment is employment in those industries that produce wealth. Any growth in manufacturing employment is a two-fold boon to the economy. Let's look at the 203,000 manufacturing jobs lost this year.

First, and most obviously, a person is employed and earning money. They are off the dole, paying taxes and redistributing that money by buying the necessities of life. Any one such person employed partially supports a whole gang of people. When the job is lost, no one is earning money, no one is paying taxes, people are on the dole and little or no money is redistributed. (Only welfare money is redistributed.)

Secondly, that person is engaged in producing wealth -- a sellable real product of some kind. A car, a bar of treated metal, canned food, a piece of furniture. So, his or her employment contributes to the total wealth of America. When someone is unemployed by the loss of a job in the manufacturing sector, real wealth is not being produced.

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