Economy Added Few Jobs in January - WSJ.com

THE OLD GOVERNMENT SHARE OF THE ECONOMY: Economy Added Few Jobs in January - WSJ.com


If the share of GDP taken by the Federal Government's impact on the economy hasn't changed (and why would it????), then it's hard to see the economy doing anything but coping with the Scylla and Charybdis of stagnation and inflation.

We see the stagnation of a 25% GDP share (and the share taken by states has grown since the 70's and early 80's - so the Fed. share may need to be lowered from 19% (or vice versa).

Thus, the big picture is the macro driver of the weight of government on the economy.

How the individual players (e.g. inflation, jobs, etc.) perform their tasks seems to be playing out right now with the inflation much higher in the destination of the dollars being created by the Federal Reserve - i.e. developing country economies.

Liberal politicians live in a fantasy world where real money doesn't matter and entitlement spending (to the deserving) is all that matters. There are some Republicans (Tea Party) that would like to start confronting entitlements - but, can they really be serious enough.

Several years back, forecasters predicted an inflationary depression. Will it come to pass?

Clearly, the spin-masters are hoping to avoid it. But, 20-22% of Americans who would normally be looking for a job can't find one - yet, the government would like us to believe this number is only 9%. Hmmm?