The Obama Jobs Crisis Grinds On

The Labor Department released its jobs report for October:

  • Employers added 80,000 jobs, about 65% of the monthly growth in the working age population.
  • The Unemployment rate remained tragically high, at 9.0%.
  • If the 2011 job growth rate continues it will take until 2016 to replace the jobs lost in 2008 and 2009.

The Obama Administration and its supporters try to spread lipstick on their jobs pig each month with a three step rhetorical formula:

  1. Ignore the year of continuous job losses after Congress passed the $820 billion stimulus that was supposed to “immediately jumpstart  job creation.”  Act as if history began in 2010.
  2. Ignore the loss of public sector jobs that Obama promised to save with billions in stimulus bailouts of state and local governments.  Those billions were taxed or borrowed from the private sector.
  3. Count only private sector jobs beginning March of 2010, the first month of increase, a year after the stimulus was enacted.

In response this Chart compares the first 20 months of private sector job growth under the Obama Administration with the first 20 months of job growth after the deep recession of 1981-82. [Continued below the chart]

The data in this chart confirms the success of the Reagan approach:

  • Tax cuts
  • Deregulation
  • Allowing insolvent businesses to be liquidated in bankruptcy

The current jobs crisis reflects the failure of the Obama approach:

  • Some tax increases have already begun and further increases that will hit small business are scheduled to begin in 14 months;
  • New ObamaCare mandates and regulations that are still being written will distress employers over the next three years;
  • New financial regulations are restricting bank lending to small business;
  • New environmental regulations are designed to restrict domestic production of oil and gas, increasing the price of energy;
  • Bailouts of insolvent banks and companies at the expense of healthy businesses.

The difference between Regan’s results and Obama’s results is  even more pronounced than it appears in the above chart because the labor force is almost 40% larger today than it was in the 1980s.  To equal Reagan’s 8.2% private sector job growth would require an average increase of 539,000 jobs per month.   The 2011 average so far is 131,000 per month.

The next chart below tracks all jobs from the beginning of the Reagan recession and the beginning of the the most recent recession in 2008. [continued below the chart]

With his record of positive success to run on, Ronald Reagan won reelection in a 49 state landslide, the largest Electoral College majority in American history.  At this point Barack Obama only hope for reelection is a weak Republican candidate.

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