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b'Recorded August 2, 2019
\\nJuly NonFarm Payroll Report: Great? Not so Great
\\nThis morning we got the release of the July NonFarm payroll report, and the general consensus among the analysts seem to be that it was s strong report, a solid report. I saw Larry Kudlow this morning on Fox Business talking about another "solid performance" in job creation.\\xa0 But once again, once you look beneath the surface, and you don\'t have to look too deep, this is not a good report.
\\nThe Bar Was Set Pretty Low
\\nFirst of all, the bar was set pretty low.\\xa0 The consensus was 151,000 jobs.\\xa0 That\'s not a lot of jobs, so it\'s not that hard to beat it, and we did.\\xa0 We got 164,000 jobs.\\xa0 But the reason we beat it was because we created more government jobs than the market expected. For private payrolls, the consensus was 160,000 jobs and we only created 148,000 jobs.\\xa0 So we created 12,000 fewer private sector jobs than had been expected and we made up the difference by creating government jobs, whether they are for the Federal government or state government.
\\nPublic Sector Jobs vs Private Sector Jobs
\\nBut there\'s a very big difference between private sector jobs and public sector jobs, in that the taxpayer isn\'t on the hook to pay the salaries of the private sector workers. They\'re working in companies that are generating profits, so the salaries are paid for by the profits that the businesses generate.
\\nThe Government Does Not Generate Profits
\\nThe government doesn\'t generate any profit. It just has to suck up tax revenue; we have to pay for these.\\xa0 So it\'s not a good thing that government gets more bloated and hires more people.\\xa0 Especially since a lot of government bureaucrats tend to complicate things. They make everybody less efficient.\\xa0 If we\'re hiring more regulators to slow down the economy and get in everybody\'s way, that\'s not a good thing. I\'d rather have a lean, mean government. Of course, that\'s not going to happen.
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