Another Devastating Jobs Report Confirms Failure

The Labor Department posted a grim jobs report for June, emphasizing America’s continuing economic misery.

  • Employers added an anemic 18,000 jobs in June.  The May number was revised downward from 54,000 to 25,000 additional jobs.
  • The unemployment rate ticked up to from 9.1% to 9.2%
  • If the 2011 rate of job growth continues, it will take 57 more months, or until March, 2016, to replace the all the jobs that were lost in 2008 & 2009.

The chart compares the results of the Obama strategy of massive government borrowing, spending and intervention in private markets with the results of the Reagan approach of deregulation, lower income tax rates and greater liberty.

In his Twitter Town Hall Obama was asked, regarding the recession, what mistakes he had made and what things he would do differently.  His answer in part was:

One would have been to explain to the American people that it was going to take a while for us to get out of this.

He didn’t tell The People it would “take a while” because he was forcefully selling the opposite, that his $800 billion stimulus, deliberate, massive deficit spending, planned tax increases and government health care scheme would, in his words, “immediately jump start job creation and long term growth.”  He led a parade of politicians and “experts” who claimed to know there were thousands of “shovel ready projects” the government could fund that would instantly hire millions of workers.  He continuously quoted an analysis produced by White House “experts” promising that with enactment of the stimulus, or recovery act unemployment would rise no higher than 8% and would steadily drop, to about 6.6% by this month.

If he had “explained” that after 30 months of reckless borrowing and spending, bringing the government the brink of a debt crisis, we’d still be short 7 million jobs, with a 9.2% unemployment rate, public outrage would have prevented Congress from enacting his agenda.

Obama’s Twitter answer continued:

I think even I did not realize the magnitude, because most economists didn’t realize the magnitude, of the recession until fairly far into it, maybe two or three months into my presidency where we started realizing that we had lost 4 million jobs before I was even sworn in.

He didn’t realize?  Really?

The jobs report for December, 2008 was published January 9, 2009, two months after the Presidential election and eleven days before Obama was sworn in.  It showed 3.6 million jobs had been lost since January, 2008, the previous employment peak.  Yet Obama now claims that he and “most economists” didn’t know how many jobs had been lost before he was sworn in until two or three months later!

Where are the thundering commentators of the watchdog media who were so sanctimonious when Michelle Bachman misstated John Wayne’s home town?

Thirty months ago President Obama inherited a deep recession.  His advisers told him not to let a crisis go to waste, to use it as a pretext to expand government power.  Obama took the advice.  He exploded regulations and spending, and signed a massive government take-over of health insurance.

Like President Obama, President Reagan inherited a deep recession as he took office in 1981. By some measures it was worse than the current downturn.  The unemployment rate was higher and mortgage interest rates soared above 15%, driving down home prices.  Reagan’s economic program, based on his commitment to liberty, was the opposite of Obama’s:

  • Reduce regulation and government intervention in the economy;
  • Enact sweeping tax cuts that were phased in over three years, beginning 1982.  Each of the 16 income tax bracket rates were reduced by at least 25%.  The top bracket rate was cut from 70% to 50%, and then to 28%.  Tax cuts left capital in the hands of those who had earned it and were best equipped to invest in job creating enterprises;
  • Release the creative and productive energies of The People from the restraints of government regulation.

The results, shown in the chart, speak for themselves.  Reagan’s policies turned the job market around and when he ran for reelection the voters rewarded him with the largest Electoral College majority in American history.

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