Filed under: Capitalism, Economy, Election 2012, Health Care, National Security, Taxes | Tags: 7.8% Unemployment Rate, Long Slow Decline, The Real Rate is 10.7%
Friday’s jobs report, we are told, is evidence of slow and steady progress. The 155,000 new jobs created in December documents nothing so much as the continuing decline of the Obama economy.
The unemployment rate of 7.8% appears to be the same as when Obama took office, that’s good, isn’t it? It is only 7.8% because the size of the work force has declined so much. Millions have given up looking for work and aren’t being counted as unemployed. If you account for the enormous drop in labor participation, the real unemployment rate would be 10.7%.
Here’s how you tell that it is spin. To break even (not even to make progress), just to break even, the economy would need to create 200,000 new jobs each and every month. So it isn’t slow progress, but slow decline.
The great pool of long-term unemployed was a staggering 4.8 million people in December. Average weekly earnings for working people has declined about 1% over the past two years. When the tab comes in from all the companies that are laying off people because they can’t afford to pay for their health insurance under ObamaCare rules, or switch them to part-time so they don’t have to, at the end of January, it’s not going to be pretty.
Democrats don’t understand incentives or consequences. And Obama believes that he can just tell people that everything is getting better, the economy is looking up, just takes a little more time, and they will continue to believe him. Hey, it worked in the election. So with an economy that he must really know is faltering, what does he do?
He forced tax hike through Congress that his very own favorite economists say will slow growth and cost jobs. He’s continuing to push forward on ObamaCare even though it’s scaring prospective employers from adding new jobs out of fear of its exorbitant new costs. The EPA has a whole stack of expensive, unnecessary and economy damaging regulations about to be released. And he has no intention of cutting back on spending at all. He said so. So he went back to Hawaii to finish his vacation. He’ll be back in time for his inauguration.