Thursday, August 11, 2016

Why the auto industry is in trouble

By John Divine, U.S. News & World Report

In 2015, U.S. auto sales set an all-time record for the first time in 15 years. Aided by the slow but steady economic recovery, low interest rates and depressed gas prices, the 2015 economic environment was a car maker's dream.

Commentary by: Lynn Cheramie, Founder, Freedom Fighters of America

Do we factor in the bailout of the auto industry? The industry was propped up by an infusion of cash they didn't earn. Most would've been out of business, which is what should've happened. We understand that letting those companies fold would've put a lot of people out of work and hurt the economy but if you can't make money at what you do then you suffer the consequences not everyone else. If we do somehow include this factor then what looks like a good number today isn't and will only get a lot worse.

Economic recovery? Really?! There has been no economic recovery! Workforce participation is at it's lowest level since April of 1978 and is down from a high of 67.3% in April of 2000 to 62.8% in July 2016. While we understand that some of the decrease is attributed to the acceleration in retirement of baby boomers another unintended consequence is the governments manipulation of the unemployment rate.

The unemployment rate is down from 10.0% in October of 2009 to 4.9% in July of 2016. This is largely attributed to the calculation change and persons not included in the calculation. Persons not included in the calculation are homemakers, students, non-responders, disabled, military personnel, people in institutions/prison/nursing homes and retired people. Are these people not employable? Just the Active Duty Military Personnel alone account for 1.3 million as of 2016. A much larger number would be the so-called people not looking for work. Another group not counted is as follows:

"As stated in method one, the number of unemployed workers does not include all those without work, but instead only counts those that have "actively" looked for work in the last four weeks and fit other specific parameters outlined by the federal government." This is from Wikihow using information from the Bureau of Labor Statistics.

Do we factor in the monthly infusion of cash by the Federal Reserve into this magical economic recovery? No!

By 2040 autonomous vehicles (ridesharing like Uber and Lyft) will account for 1/3 of all vehicle sales in the United States. This is really bad news for any automaker and points to another bailout of automakers in the future.

Our government just keeps pushing the economic collapse, one which they've caused, down the road for another administration to handle. The bubble just keeps getting larger and will kill this country when it finally bursts. It's time to deal with it now before it's too late! Cutting out all infusions of cash, ceasing interest rate manipulation, bailouts, sealing our borders, tariffs on imports, returning jobs to America and capping all welfare benefits would immediately reverse the collapse and by the way Social Security is not a welfare program. Hard working people have paid for Social Security and should get every penny coming to them without any cuts and with cost of living increases every year.

Our economy looks like it's headed in the right direction but it's only as good as the propaganda put out by our own government and their propaganda machine, The Mainstream Media!

Bureau of Labor Statistics Labor Force Participation

Bureau of Labor Statistics Unemployment Rate

Governing Active Duty Military Personnel

Wikihow Unemployment Rate Calculation


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