Monthly Archives: June 2016
The United States unemployment rate dropped to 4.7% last month, reaching its lowest point since 2007. Yet although this sounds like a huge step in the right direction, it is actually just the opposite. Unemployment is decreasing for all the wrong reasons.
The declining unemployment rate is incredibly misleading. According to CNN Money, disheartened Americans simply stopped looking for jobs, dropping out of the labor force altogether. This means that these individuals are no longer counted in the labor force, which consequently lowers the “jobless” rate.
In other words, though the unemployment rate is down, this statistic does not mean that more people are employed. Rather, it is simply casting a shadow over the fact that more people are not working or earning any kind of income.
U.S. employers have also drastically slowed their hiring over the past month, adding only 38,000 jobs in May. This is the lowest job growth in more than five years. Job gains have averaged just 116,000 in the past three months, down significantly from the average of 230,000 in the 12 months that ended in April.
Job loss in the United States has been widespread. Manufacturers cut 10,000 jobs and construction firms cut 15,000 positions. The retail and hospitality industries added jobs, but at a much slower pace than in recent months.
Furthermore, the number of Americans working part-time jobs while seeking full-time positions increased from 6 million to 6.4 billion. Prior to the recession, there were only about 4.2 million “involuntary” part-time workers.
Things are not looking good for the United States labor force. People in the U.S. are over-worked and underpaid if employed at all. In fact, workers in the U.S. currently work on average 164 hours longer per year than they did 20 years ago, but many are not compensated fairly for their hard work.
More than one-third of all real estate investors make more than $75,000 a year. But for Thomas Barrack Jr., that is only a small percentage of what he is worth.
Barrack is a billionaire private real estate investor who has recently raised $32 million dollars in order to form a super Political Action Committee (PAC) to support presumptive Republican presidential nominee Donald Trump.
A super PAC is an independent organization where any corporation or individual can donate an unlimited amount of funds in order to help a presidential candidate win their race. These became the popular technique of fundraising after traditional PACs became less regulated in 2010.
The super PAC, called Rebuilding America Now, managed to raise their funds with only a handful of donors. This new group would be the third major Super PAC to back Trump in this election season.
As reported in The Wall Street Journal, Barrack told CNN he believes that the donors who originally vowed never to support Trump are changing their minds. He explained the process:
“What they’ve been waiting for is this idea of, Is Donald going to act more presidential? And as time goes on, and they have more faith in the fact that he’s making good judgments, and they become more furious with the establishment, which is really the key here, they become committed.”
But the creation of Rebuilding America Now could cause some tension between the PACs backing Trump. As Barrack is a longtime friend of Trump, this super PAC threatens the current leading campaign PAC, Great America.
Even though Trump has yet to publicly endorse any of his PACs, they still try to vie for the position as top contributor to the campaign. PACs are able to raise contributions without monetary caps but are forbidden from coordinating with each other on strategy plans.
As of time of publication, 15 PACs both big and small endorse Trump.