If Private Sector Job creation had been Obama’s original goal the Reagan Administration experience provided the formula to achieve that goal.
The Labor Department’s monthly jobs report for May showed private sector employers created 83,000 jobs in May. Unfortunately, state and local governments cut 29,000 employees so the net job gain was only 54,000. This is a pitifully small number, less than the number of jobs that must be created every month just to keep up with population growth.
In a TV interview Austan Goolsbee, Chairman of the Obama Administration’s Council of Economic Advisers tried to distract us:
We should never read too much into any one month’s report. A moving average and looking at a longer period is a more accurate representation of the job market
…In the last 15 months we’ve added more than two million jobs in the private sector.
Why would the Obama Administration – whose defining doctrine is that collective action through government directive is more virtuous and desirable than unsupervised individual liberty – now boast about private sector hiring? Because, even though a major goal of Obama’s trillion dollar “stimulus” was preservation of government jobs at all levels, May marked seven straight months of layoffs from state and local governments.
Mr. Goolsbee draws attention to the most recent 15 months because private sector job growth began 15 months ago. During the first 13 months of the administration’s massive “stimulus” over 4 million private sector jobs were lost.
Mr. Goolsbee hopes we’ll perceive two million jobs as “a lot,” but the chart above puts his comment in perspective.
Like President Reagan, President Obama inherited an economy in crisis. But Obama came into office vowing to implement policy ideas that were exactly opposite the ideas that inspired the successful Reagan Presidency.
- Reagan cut income tax rates. Obama spent his first two years promising to increase tax rates on “the rich,” mostly small business owners and investors. In December he signed legislation that schedules his tax increase to take effect two months after the 2012 Presidential election
- Reagan cut “discretionary” spending. Obama dramatically increased it.
- Reagan reduced regulation and government intervention in the private sector. Obama has implemented waves of new regulation and under his leadership Congress passed legislation that will require new regulations of health insurance and virtually every detail of banking and finance – even ATM cards.
The result of ObamaNomics has been a slow, halting economic recovery compared to the extended economic boom that followed the recession of the 1980s.