The Labor Department released its jobs report for September:
- Employers added 103,000 jobs in September. While this was an improvement over August it was less than the monthly growth in the working age population.
- The Unemployment rate remained unchanged at a tragically high 9.1%.
- If the 2011 job growth rate continues it will take five more years to replace the jobs lost in 2008 and 2009. Even then we’ll be 14 million jobs short of normal employment because the working age population grows by about 125,000 per month.
Ronald Reagan’s strategy for economic growth and job creation was simple, and had been history’s proven prosperity formula:
More liberty = Greater prosperity and more Jobs
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 initial unemployment rate was higher and interest rates soared into double digits driving down home prices. Reagan’s economic program, based on his commitment to liberty, was the opposite of Obama’s:
- Enact sweeping tax cuts that were phased in over three years, beginning 1982. Each of the 16 income tax bracket rates was reduced by at least 25%. 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 by eliminating the restraints of excessive government regulation.
Unfortunately, 2011 is the third year of high unemployment because President Obama simply ignores history, adhering to the seductive, “progressive” promise of prosperity through expanded central government power and intervention. Obama’s agenda of deficit spending, new regulations, more government intervention and promises of future tax hikes began within days of his inauguration. Some of the highlights are displayed in the chart above.
President Obama’s latest “Jobs Act” offers employers temporary, one-year tax cuts, followed by large, permanent tax increases, that deliberately target small business employers. Apparently, he thinks business owners are dumb enough to be hoodwinked by such a transparent bait-and-switch scheme.
The chart below compares monthly unemployment rates during the Obama and Reagan administrations, beginning at the moment of highest unemployment. Reagan faced even higher unemployment during Obama. But as a result of his tax cuts and deregulation Reagan’s unemployment rate declined rapidly. The People rewarded Reagan with a 49 state landslide reelection, the largest Electoral College margin in American history. Even Obama’s most loyal supporters in Congress and the media admit his reelection is in doubt, and if he does win it will be by a slim margin.