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Once again, the
big government policies of President Obama and the Democrats in Congress have
kicked the American worker while he's down. Today's release of December
non-farm payrolls revealed that another 85,000 Americans lost their jobs.
With the official unemployment rate at 10% and the unofficial rate (which
includes discouraged and underemployed workers) topping 17%, the job
prospects for the newly unemployed continues to be bleak.
More significantly,
we continue to replace manufacturing jobs with less productive service-sector
jobs. Not only does this lower the wages of working Americans, but it forces
the trade deficit higher -- further undermining our economy, lowering the
value of our dollar and diminishing our standard of living.
Real job growth
will not return until government removes the obstacles that prevent small
businesses from expanding. Washington must end its assault on capital
formation, entrepreneurship and profits. With more regulations and higher
taxes, government effectively places a heavy tax on job creation, which is
why so many are now unemployed. The oldest axiom of economics is:if you want
less of something, tax it.
Furthermore,
government must stop spending. By borrowing so much of our scarce savings, it
is crowding the private sector out of the credit markets. More importantly,
all the money being printed to finance
government "stimulus" spending ensures that even those who manage
to keep their jobs will find it harder to make ends meet as inflation erodes
the purchasing power of their wages.
We must resist
the calls for government jobs programs. Such programs simply replace the more
productive jobs that might otherwise have been created by the private sector
with make-work tasks like paving unnecessary highways or, worse,
"community organizing." This makes the economy less efficient in
serving the demands of consumers, driving prices higher and placing even more
jobs in jeopardy.
Peter D. Schiff
President/Chief Global Strategist
Euro Pacific Capital, Inc.
20271 Acacia Street, #200 Newport Beach, CA 92660
Toll-free: 888-377-3722 / Direct: 203-972-9300 Fax: 949-863-7100
www.europac.net
pschiff@europac.net
For a more in depth analysis of the
tenuous position of the American economy, the housing and mortgage markets,
and U.S. dollar denominated investments, read my new book : The Little Book of Bull Moves in Bear Markets" (Wiley,
2008).
More importantly take action to
protect your wealth and preserve your purchasing power before it’s too
late. Protect your wealth and preserve your purchasing power before
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, and subscribe to my free, on-line investment newsletter at http://www.europac.net/newsletter/newsletter.asp
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