American Elephants

Dan Mitchell Explains Keynesian Economics by The Elephant's Child

Doesn’t work. Never has. Here’s why.

We Need To Add 200,000 Jobs Every Month. Not Happening. by The Elephant's Child

The media is loudly celebrating the bullish November jobs numbers, but, surprise, they’re lying to you. November preliminary jobs data show 146,000 new jobs and a drop in unemployment to 7.7% — so what’s the matter with that? The jobless rate fell slightly from 7.9% to 7.7 % but to make a real dent in unemployment, we have to add at least 200,000 jobs a month for a prolonged period.

Since 2011, businesses have added about 151,000 jobs a month. If you remember, just before the election, there were big payroll gains in September and October? Nevermind. The Labor Department has revised down its job estimates for those two months by 49,000. But we still have job growth in the private sector, right? Not really.  In the last six months, 621,000 of the 847,000 new jobs created have been in government. They’re all working in the White House for really big salaries. (Just kidding with that last sentence).

The atmosphere for business is poisonous. That big “drop” in unemployment was due to the fact that 540,000 Americans are no longer looking for work. They either dropped out, took early disability or retired.  Since the start of  2009, 9.7 million Americans have dropped out of the labor force. More than 24 million Americans who want jobs don’t have them, driving the labor force participation down to 63.6 %— just above August’s 31-year low of 63.5%. This is the worst labor market in a recovery ever.

For an even cheerier note, it may get worse. The quarterly Wells Fargo/Gallup small-business survey found that 21% plan to cut jobs over the next six months.

Small businesses account for nearly 80% of all new job creation in America. A small-business slump means no jobs. Small businesses are being threatened with huge new expenses because of ObamaCare. Their transportation costs are going up. Their energy costs are going up. The cost of goods is going up. New regulations are pouring out of Washington, with more uncertainty as to whether or not they are complying with new laws. Obama’s insistence on raising taxes on “the rich” will affect some 990,000 small businesses who file their taxes as individuals.

So why is the labor market not recovering rapidly as it has done in the past with millions of new jobs and rapid economic growth? One word. Obamanomics. His ideology points him in the direction of a second recession. The jobs climate is undoubtedly made worse by the debate over “the fiscal cliff.” Obama’s bad ideas have already had a negative impact on small business. We need four million private sector jobs to get back to the where we were before the “Great Recession.”

The Magnificent Michael Ramirez Strikes Again! by The Elephant's Child
September 16, 2010, 7:31 pm
Filed under: Capitalism, Economy, News, Politics | Tags: , ,

My admiration of the work of political cartoonist Michael Ramirez knows no bounds. I think he is simply terrific, and he’s on a roll lately. This is priceless.  His work is featured daily at The IBD Editorials are consistently excellent.

He recently published the first-ever collection of his work Everyone Has The Right To My Opinion. Political cartoons would seem to be ephemeral since they are reflections on the daily scene, but they are not.  I have a small collection of some of my favorites of Mr. Ramirez’ cartoons, and they not only remain funny, but provide a deservedly snarky look at history.

Another Obama Plan, Another Stock Market Dive by American Elephant



Or perhaps the willing suspension of belief. That’s the only explanation for Americans attitudes as Obama’s presidency enters it’s second month.

Obama’s speech was well received by most people who watched, but the stock market took another nose dive as it seems to do every time his administration announces new policy.

The majority of Americans now support Democrats stimulus plan even though over half of Americans think it is more likely to harm the economy than help it, and despite the Congressional Budget Office’s own prediction that it would harm the economy in the long-term.

Wall Street greeted news of Obama’s election last November with a two-day (then) record-breaking 930 point nosedive. The day Obama was sworn into office was the biggest Inauguration Day tumble in market history. He unveiled his bank-bail-out; the market plunged. The day Obama signed his behemoth big-government-stimulous plan into law, the markets lost another four percent of their value. Indeed, since Obama won the election, the stock market has lost roughly 3,000 points, and has eviscerated all the significant gains made since 1997.

And yet again, Wall Street responded to the grand plans Obama laid out last night by flushing another 2 percent down the crapper.  Virtually every policy Obama and his administration have announced since winning the election has caused things to get worse, not better.

Is it any wonder that Obama has said he does not look to the markets to judge the success of his economic policies?

But the stock market represents investment! It represents jobs! It represents your retirement, your nest egg, your life savings!

So this president has made clear that your evaporating life savings is not what he is concerned with.

Congratulations, Mr. Obama! It shows.

How much longer will Americans willingly disbelieve their own eyes for  pretty words and confident lies? How long until the American people begin to make the connection between their dwindling life savings and the policies that are causing it?

Let’s HOPE™ it’s sooner rather than later.

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