Jobs Crisis Continues, Yet The Solution is Obvious

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.

The chart contrasts the current recession and anemic recovery with the recession and robust recovery of the early 1980s. (continued below chart)

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.

9 Comments so far

  1. GrantintheOC on October 8th, 2011

    Reagan proved beyond any doubt the value that the private sector to do its job. What is so hard for Obama and the liberals to understand about this? Every time government causes problems their only solution is more government! It’s like “helping an obese man by taking away his running shoes and giving him a shipment of Hershey bars!

  2. Thousand Flowers Blooming on October 8th, 2011

    Reagan is the Conservative’s phony messiah. He set in motion the economy of the rich, for the rich paid for by the middle class. The gap between the rich and the poor is greater than ever and still the Reagan Republicans have only one card to play – tax cuts for the rich. Again. One more time. Why does anyone still believe in voodoo economics?

  3. Sarah Livingston on October 8th, 2011

    Obama doesn’t care about the rich or the poor. His goal is political conquest and more political power for himself. That’s the Chicago way. He only cares about who can help him on his way to more power. Today that’s the unions and donors like the solyndra crooks. But even they should watch out. He’ll throw them under the bus with Rev. Wright when he doesn’t need them any more.

  4. AzTex on October 8th, 2011

    Grant asks: “What is so hard for Obama and the liberals to understand about this?”

    What is hard to understand is Republican devotion to a washed up movie actor with Alzheimer’s who became President by accident after his VP made a deal with the Iranians to keep the hostages until after the election. How obvious was it that Reagan was conspiring with the Iranians? They released the hostages at the very same moment Reagan was taking the oath of office on inauguration day.

    Reagan was the father of the insane deregulation fad that turned our financial sector into a casino and caused the meltdown and depression of 2008 – 2011.

    Reagan did nothing to cause more jobs. It would have happened anyway. Clinton created even more jobs by raising taxes. Unfortunately, Clinton didn’t veto Gingrich’s deregulation frenzy and the rest is history. Here we are.

  5. IdahoRick on October 8th, 2011

    Hey there AzTex –

    If Reagan already had Alzheimer’s in 1980 what does that say about Carter who he defeated in the election and the Democratic Congress who he persuaded to pass the tax cuts?

    You say he had Alzheimer’s AND he pulled off this diabolically clever, secret deal with the Iranians before he was elected?

    You’ve had too much liberal brainwashing, my friend.

  6. […] Jobs Crisis Continues, Yet The Solution is Obvious […]

  7. Jay on October 9th, 2011

    There ought to be an intelligence quiz given to people to post. Liberals just can’t fathom that something other than government can drive, and should drive, the economy. So, they look at the empirical evidence from Reagans years and have to discredit what was basically 18 years of uninterrupted growth, by calling him names and pointing to the “wealth gap.”

    But after 3 years of liberal orthodoxy, what do we have? Utter failure, as predicted by those on the right.

    We weren’t hoping Obama would fail, we knew he would.

  8. Free business plan software on October 11th, 2011

    Great article. I’ve enjoyed this contribution. Its nice to see every questions answered in a blog post like this. I will add this post on my blog and link to it. Thanks for a clear informative post, I’ve learned a lot. I hope to see videos though as I can be A.D.D and reading articles is not my favorite thing to do online. So what I do sometimes is just print the whole thing and read offline.

  9. Drew on October 12th, 2011

    “Reagan was the father of the insane deregulation fad that turned our financial sector into a casino and caused the meltdown and depression of 2008 – 2011.”

    Now hold on just a minute. All I’ve heard for years now is that it was all Bush’s fault. Your mean it was Barzinni, I mean Reagan, all along?

    You trolls got to get your story straight. Oh, and pass the bong.