There Have Actually Been Some Jobs Saved, Only In Place Of Recovery



Thus, no wonder businesses are in no mood to hire more…because there’s not any more work (revenue potential) that needs getting done. Instead, corporate profits, like the economic rebound represented by GDP and GDI, are hugely inflated and artificial. As I wrote at the end of October when first breaking down the impact of these subsidies:

Instead of revenue and investment being received by the business sector, the bottom line of NOS, companies are getting paid by cash that has been borrowed via the government from the bond market (which has overvalued safety and liquidity) because it can’t be sourced from anywhere else; it isn’t like the government is taking from parts of the economy that are working (thus, paying more in taxes) and merely redirecting to those pieces not working (which is what a subsidy really means).

It is borrowing entirely from the outside because very little in the private economy is working (at the enlarged margins).

This is a bypass of stalled basic economic functions and a very precarious one; there shouldn’t be such wide, gaping holes the government feels it necessary to plug by the trillion. It’s instead the very obvious symptom of a deeply troubled underlying state.

And that’s why government “stimulus” doesn’t really stimulate. It has, however, in this specific case, actually saved jobs. But, and here’s the thing, many people are working at what they realize aren’t real jobs any longer so much as the creation of zombie labor beneficiaries of artificial and inflated PPP corporate windfalls.



There isn’t more work, or even a return of work, for these workers to do, so, despite still being paid, they have to realize the company they work for (on average) continues to fundamentally struggle because the economic rebound doesn’t match the size of the GDP estimates.

Even this significant slice of the workforce, therefore, must be cautious knowing just how precarious their own position must be – on top of the signals corporate (and proprietor’s) businesses are sending with their own quite rational caution about sustained reluctance to expand payroll levels and employment overall.

These are all things connected to a lack of economic recovery. And that’s why “stimulus” not only doesn’t stimulate, it’s once again “the only game in town.” If only actual, genuine, legitimate economic growth was.
 

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Disclosure: This material has been distributed for informational purposes only. It is the opinion of the author and should not be considered as investment advice or a recommendation of any ...

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