Tags: Ed Butowsky | investigation | jobs numbers | employment rate

Wealth Manager Butowsky: 'There Should Be Investigation' Into Jobs Numbers

By    |   Monday, 09 February 2015 07:20 PM

The strong January jobs report had many economists turning cartwheels, but don't believe the hype, Ed Butowsky, managing partner of Chapwood Capital Investment Management, told Newsmax TV.

The official data indicate that non-farm payrolls increased more over the past three-months than in any other such period over the past 17 years.

But some economic experts, including Gallup CEO Jim Clifton, question the veracity of the statistics.

"There should be a lot more investigation into these government numbers," Butowsky told the "Steve Malzberg Show" on Newsmax TV. "The more people analyze them and understand where they come from, they'll realize what a farce they really are."

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Even the government acknowledges that the labor participation rate stands at only 62.9 percent, just 20 basis points above its 36-year low, he said.

And, "what's getting lost in this conversation is how many full time jobs we need to make and why," Butowsky said. "The average full-time job is $12,500 into the federal government" through tax revenue.

"We are short every year about $500 to $600 billion in terms of our budget deficit," he said.

"So we need to create about 500,000 new full-time jobs a month just to get us to the point where we can pay our bills every year."

Non-farm payrolls rose 257,000 in January. "When people are elated with 250,000 new jobs, that's only halfway there," Butowsky said. "And that 250,000, the majority of those jobs are part-time."

He insists his concern isn't political. "This is an American thing. We need money to pay our bills, because we're spending more money than we ever had in this country. "

Government policy must be changed, Butowsky said. "The policies we have today just aren't getting us there. It's actually putting not just our future generations at risk, but truly is putting us at risk today."

Meanwhile, economic sluggishness overseas can hurt our economy too, he said, noting that about 50 percent of revenue for S&P 500 companies comes from abroad.

To be sure, Butowsky's not too worried about the economic turmoil in Greece. "I'm not concerned whatsoever about Greece. It's so small, it's somewhat insignificant, but it does pull down the European economy, which is what I am concerned about."

Indeed, that's his biggest concern, Butowsky said. "We're going to see a deleveraging of the banks where they're going to go from 30-to-1 to 10-to-1 in terms of the ratio of assets to debt and when that happens, we've got problems."

He's also concerned about the Middle East "and the potential that we're probably going to see Israel strike at some point, because they're going to have to, and that's going to have a ripple effect throughout the oil markets and throughout the world economy."

Butowsky sees a war in the Mideast "sometime soon, and we'll probably see oil prices go higher as a result of that."

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The strong January jobs report had many economists turning cartwheels, but don't believe the hype, Ed Butowsky, managing partner of Chapwood Capital Investment Management, told Newsmax TV.
Ed Butowsky, investigation, jobs numbers, employment rate
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2015-20-09
Monday, 09 February 2015 07:20 PM
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