Week Ending January 14th, 2022
Nonfarm Payrolls came in considerably below forecasts… Economists expected nonfarm payrolls to come in at around 450,000. Yet the economy only added 199,000 jobs in December.
What does it mean – We had great September and October numbers only to be hit in November and even harder in December. Yet job openings remain over 10 million. And this week, initial claims increased by over 23,000 to 230,000 well above the consensus of 202,000.
U.S. Trade Deficit widens with record imports… Where to start? Oil, coal, natural gas, technology, biosciences, farming and agriculture, pharmaceuticals, manufacturing, etc. Other than the service industry, almost every sector saw exports shrink in 2021 and this year is continuing the trend.
What does it mean – Dismal fiscal and economic policies that include more regulations that continue to lead to rising production costs. Combined with runaway inflation, the trade deficit will continue to widen. After all, the political class needs a reason to justify further government control of our economy through more regulation that creates more complexity and cost.
Leaders in D.C., state capitols, cities, and counties should be asking themselves, how long will the American worker, small business owner, entrepreneur, etc. allow their elected officials to export their jobs and lifestyle to third world countries and allow the state, federal, and local governments to control who they serve? Never in the history of America have we frozen production of so many sectors of the economy through fear and executive orders at the federal, state, and local levels.
Retail sales…Wow. Not expected and certainly missed by the media.
What does it mean – Not adjusted for inflation, retail sales contracted at their fastest pace since last February in the face of broadly higher prices during a time we should have seen more spending. After all, it was the holiday season.
CPI… The Consumer Price Index is up 7% year over year and up .5% month over month.
What does it mean – While gas prices dropped a whopping couple of cents, inflation is here and still climbing. I am pretty sure the 70’s just called the White House and asked for its economic policies back.
Self-inflicted wounds… Mask mandates and now vaccine mandates in several major cities including Washington D.C., Boston, NY, and several other major cities.
What does it mean – “Rules for thee but not for me.” We are spending borrowed money to justify the elites’ desire for more control over their perceived idea of what is best for your future dreams, employment, lifestyle, safety, etc. Get ready, if this continues expect to have to get tested for diabetes before you order a hamburger.
I was just in D.C. moving my oldest daughter into her apartment for her fellowship. It was a ghost town. The restaurant industry and service industry were thriving businesses a year ago. The gig economy was everywhere. Uber and lift drivers are all over the place. Today, it is all but gone except for large chain stores and very expensive restaurants. They have crushed the little guy and the entrepreneur. Over the last year or so, the only thing thriving in D.C. are the swamp creatures and the homeless population. So sad.
For many, Dickens summed up 2021 in one sentence. “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way—in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only.”
Let’s make 2022 the year of rugged individualism and limited government. Let’s get back in the game, roll up our sleeves, go back to work and own our future. It is a heck of a lot better than the government vision for your life.