Liberty News ForumLNF Forums HerePolitical Opinion Page - The Hot Seat › Feb 2015 ADP NER
Page Index Toggle Pages: 1 Send TopicPrint
Normal Topic Feb 2015 ADP NER (Read 850 times)
gop_norm
LNF Senior Staffer3
**
Offline

I Love Liberty News Forum!

Posts: 366
Joined: Aug 18th, 2010
Feb 2015 ADP NER
Mar 4th, 2015 at 8:25am
Print Post  
ADP National Employment Report: Private Sector Employment Increased By 212,000 Jobs in February

“Private sector employment increased by 212,000 jobs from January to February according to the February ADP National Employment Report. Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by ADP, a leading global provider of Human Capital Management (HCM) solutions, in collaboration with Moody’s Analytics. The report, which is derived from ADP’s actual payroll data, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis.”


Change in Nonfarm Private Employment (in thousands)




BLS Current Employment Statistics (CES) will be released Friday, Mar 6.

  

"The first provision extends the Federal Government's authority to borrow funds. This is an action that we just take to prevent the Government from defaulting on its obligations, and I have no objection whatsoever to doing so. In short, this extension of the debt limit is necessary and unavoidable." -- President Reagan
Back to top
 
IP Logged
 
Rabbit_Reborn
LNF Speaker
LNF Bunker
*****
Offline

2015 Poster of the Year.
Election stolen 2016.

Posts: 21,415
Location: Midwest
Joined: Oct 17th, 2005
Re: Feb 2015 ADP NER
Reply #1 - Mar 4th, 2015 at 8:47am
Print Post  
Oh, good. It's gop_norm.
  

BowHunter wrote on Feb 3rd, 2017 at 5:08pm:
I am no longer indulging assholes.
Back to top
 
IP Logged
 
TowardLiberty
LNF Speaker
LNF Bunker
*****
Offline

anti-state, anti-war and
pro-market

Posts: 31,265
Location: Houston
Joined: Apr 6th, 2008
Gender: Male
Re: Feb 2015 ADP NER
Reply #2 - Mar 4th, 2015 at 12:08pm
Print Post  
I notice the Adam Smith quote has been dropped....

Perhaps employment is not a function of the money supply after all!
  

"Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist." J M Keynes

"In the first place, the dichotomy between "theoretical" and "practical" is a false one. In economics, all arguments are theoretical. And, since economics discusses the real world, these theoretical arguments are by their nature "practical" ones as well." M Rothbard
Back to top
 
IP Logged
 
gop_norm
LNF Senior Staffer3
**
Offline

I Love Liberty News Forum!

Posts: 366
Joined: Aug 18th, 2010
Re: Feb 2015 ADP NER
Reply #3 - Mar 5th, 2015 at 10:29pm
Print Post  
According to ADP, private employment expanded by 2.954-million from the Jan 2008 peak.





source: ADP Historical Data (xlsx)

Accommodative monetary policy is a significant causal factor of employment gains. Low cost of capital promotes effectively the goal of maximum employment. Employment is a function of the money supply.

“IV.2.3 The general industry of the society never can exceed what the capital of the society can employ. As the number of workmen that can be kept in employment by any particular person must bear a certain proportion to his capital, so the number of those that can be continually employed by all the members of a great society must bear a certain proportion to the whole capital of that society, and never can exceed that proportion. No regulation of commerce can increase the quantity of industry in any society beyond what its capital can maintain. It can only divert a part of it into a direction into which it might not otherwise have gone; and it is by no means certain that this artificial direction is likely to be more advantageous to the society than that into which it would have gone of its own accord.” -- Smith: Wealth of Nations, Book IV, Chapter 2 | Library of Economics and Liberty

The “whole capital” of society is the monetary base and the assets and liabilities of banks. When Adam Smith writes about capital “purchasing materials”, “paying his workmen” and being “fixed in workhouses and in the instruments of trade,” he has in mind financial capital, i.e., money (id., IV.2.44).

The neutrality of money theory is false. The terrible contraction of 1930s and the financial crisis of 2008 proved it to be false. Monetary policy affects Real GDP and employment.

  

"The first provision extends the Federal Government's authority to borrow funds. This is an action that we just take to prevent the Government from defaulting on its obligations, and I have no objection whatsoever to doing so. In short, this extension of the debt limit is necessary and unavoidable." -- President Reagan
Back to top
 
IP Logged
 
Lomelis
LNF Speaker
*****
Online

Wonderboy

Posts: 13,110
Location: California
Joined: Dec 20th, 2002
Gender: Male
Re: Feb 2015 ADP NER
Reply #4 - Mar 5th, 2015 at 10:38pm
Print Post  
gop_norm wrote on Mar 5th, 2015 at 10:29pm:
According to ADP, private employment expanded by 2.954-million from the Jan 2008 peak.

The neutrality of money theory is false. The terrible contraction of 1930s and the financial crisis of 2008 proved it to be false. Monetary policy affects Real GDP and employment.




Correct, when you continue to live beyond your means because of a cheap monetary policy contractions like the 30's and the recent one will occur.  Unfortunately you support more of the same policies that lead to such contractions.  Excessive government spending, unnaturally cheap interest rates, and simply printing money isn't the answer which is exactly what is happening now.
  

Deny, Ignore, Evade, Distract, Place Blame Elsewhere!  Must defend the Trump Messiah!

But, but, but....but Hillary, but Lynch, but Obama, but Boosh, but Clinton!
Back to top
 
IP Logged
 
TowardLiberty
LNF Speaker
LNF Bunker
*****
Offline

anti-state, anti-war and
pro-market

Posts: 31,265
Location: Houston
Joined: Apr 6th, 2008
Gender: Male
Re: Feb 2015 ADP NER
Reply #5 - Mar 5th, 2015 at 11:13pm
Print Post  
And it's back!

The idea of monetary neutrality is indeed false. But that does not change the fact that the capital of a society is not the same as its money supply. No economist has ever made that connection, certainly not Smith.

There is such thing as money or financial capital.

And increasing the money supply in the short run creates a temporary situation where there appears to be more financial capital or savings than savers are actually willing to forgo.

In the long run, the economy is constrained by the real preferences of savers and consumers. Every boom based in monetary expansion must resort in a bust, owing to the fact that there are real constraints operating on the economy. The production possibilities frontier is a real thing. Scarcity exists.

Money is not neutral and monetary imbalances can have disrupting influences on the economy. But increasing the supply of money and credit cannot create lasting long term growth.

As Adam Smith reminds us, "The general industry of the society never can exceed what the capital of the society can employ. As the number of workmen that can be kept in employment by any particular person must bear a certain proportion to his capital, so the number of those that can be continually employed by all the members of a great society must bear a certain proportion to the whole capital of that society, and never can exceed that proportion. No regulation of commerce can increase the quantity of industry in any society beyond what its capital can maintain. It can only divert a part of it into a direction into which it might not otherwise have gone; and it is by no means certain that this artificial direction is likely to be more advantageous to the society than that into which it would have gone of its own accord.” -- Smith: Wealth of Nations, Book IV, Chapter 2 | Library of Economics and Liberty

Smith is not fuzzy here. He is clear that no regulation can increase the quantity of industry beyond it's capital. And that includes monetary regulations.

Capital is more than just a nominal sum. It is an inter-temporal category. It is a real phenomenon.

It is not the mere product of bank credit creation. If the two concepts could be so thoughtlessly conflated, then Zimbabwe could be considered one of the most capital rich areas in the world. And the same goes for Weimar era Germany during the hyperinflation years.
  

"Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist." J M Keynes

"In the first place, the dichotomy between "theoretical" and "practical" is a false one. In economics, all arguments are theoretical. And, since economics discusses the real world, these theoretical arguments are by their nature "practical" ones as well." M Rothbard
Back to top
 
IP Logged
 
Page Index Toggle Pages: 1
Send TopicPrint
 
Liberty News ForumLNF Forums HerePolitical Opinion Page - The Hot Seat › Feb 2015 ADP NER

LNF Home - Political Opinion Page
LNF Forums

Christian Forum - Religion Forum - Sports Forum - Entertainment - House
Military, History - Cooking and Crafts - Creative Writing
Off the Wall News - Science Forum - Tech Gadgets - Financial News - Humor
Bunker - Page 2 - Page 3 - Page 4 - Chat Room





Drudge Report - News Max - Rush Limbaugh - FrontpageMag
Advertise on the LNF - Twitter LNF - LNF Archive - LNF News
LNF Blog
News and Political Links
Political Blogs
Add your website or blog
Political Columnists
Political Humor
News forum posting, privacy policy and member rules