American Elephants


Haven’t Heard Much About August Jobs? Bad Report. Hushed Up! by The Elephant's Child

Didn’t we just hear Obama making a speech in which he extolled how well the economy is doing — that was in Minneapolis at the “laborfest,” in which he celebrated his “middle-out economics.” Over the past 53 months, he said, our businesses have created nearly 10 million new jobs, and in the last six months we have created  more than 200,000 jobs each month.

But in August there were only 142,000 jobs, for the first time since January. Participation in the labor market was 62.8 percent, the worst since the 1970s.

Those who have been unemployed for more than 27 weeks is high at 2.963,00031.2 percent of all unemployed. Those who are working part-time when they would prefer to be working full time dropped a  little to 7,277,000. If you add the under-employed to the unemployed, the broader unemployment rate is 12 percent.

This is a slow, sluggish recovery because of government action. Recessions are nothing unusual. There is a business cycle. When the signs turn positive businesses start to grow and expand and hire. The more things improve and the more they start making money, some enthusiasm is going to go too far. Over-expansion, a little greed, too much enthusiasm, and first thing you know there are some bankruptcies, and people get laid off, expansion plans are put on hold and a lot of marginal businesses go out of business.

We have a long record of recessions and recoveries and how they happen. Swift, short recessions happened because the administration clamped down hard on spending, cut the budget, cut taxes (especially on business) and eliminated unnecessary regulation.

The Obama administration believed that more money circulating in the economy (Keynesian economics) would somehow boost the economy just by moving around. (magical thinking, doesn’t work).

They believed the extra money circulating from government food stamps would somehow boost the economy, neglecting to notice that money came from the pockets of taxpayers. Obama invested enormous amounts of taxpayer money in solar energy and wind turbines, which observation of Spain’s disastrous history with renewable energy  should have dissuaded him. And of course business had to be controlled more. Americans were getting fat, and Michelle had just the remedies — more regulation. The auto companies couldn’t be allowed to go through a normal bankruptcy, but required a special government effort.

The Keystone pipeline would have created 20,000 jobs right off the bat in pipeline building with thousands of spin-off jobs in servicing the project. The Greens objected, end of project.

But perhaps the most notable example of government stupidity was the Great Gibson Guitar Raid. On the vague possibility that the tiny bits of ebony or rosewood used for guitar frets might have been imported without proper papers, Gibson was raided with an armed Swat Team, business shut down, raw materials and finished guitars confiscated. Huge losses from inability to conduct business. Gibson had the necessary permissions from all the countries involved, but the feds weren’t about to be embarrassed. Do you think that businesses pondering whether to expand a little didn’t notice that?  Or the Sacketts who were irrationally accused by the EPA of attempting to build a house on a “wetland” on an ordinary subdivision overlooking a lake? That’s regulation gone bat-excrement. Business put their plans on hold, waiting for a better business climate.

The left does not understand cutting taxes. They do not understand cutting regulation, because business must be controlled, or who knows what would happen? We have fairly large numbers of members of Congress who have never done anything else but government. Who believe firmly that good people do government and make nice benefits for the people, which will make the members of Congress feel good. Only bad people who are greedy work for private business, and they must be controlled. That’s where we are, and why.

As you have noticed, he’s not doing too well with foreign policy either.


2 Comments so far
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Not only are the job numbers extremely quiet for August (a good chunk of which can be attributed to the end-of-summer, seasonal job loss, which corresponds to the higher numbers in May and June when these kids were hired), but have you noticed a distinct lack of poll numbers for the mid-term elections? Even Nate Silver is saying he can’t make accurate predictions because of a lack of polling data. The NYT, The Washington Post, USA Today, all featuring about 1/3 the polls they did for the 2010 mid-terms. Why? One theory (that I happen to agree with) is quite frankly, the polls that are being taken do not look good for Democrats almost anywhere, and a Democrat-sympathetic media don’t want to reinforce the idea that Dems are poised to lose (and lose big!) in November.

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Comment by Lon Mead

There’s always the conspiratorial view that the polls look better for Democrats than people think, they dont want Republican voters to be alarmed & thus more motivated, while Dems count on their superior GOTV efforts.

That’s the problem with a media that collaborates via secret email lists and secret google groups like Journ-O-list. You never know what they’re up to, but you know they’re coordinating something.

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Comment by American Elephant




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