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As the President and Congress continue to roll out the radical Obama agenda Liberty Works will continue to hold them accountable for failing results.
The political-media establishment put on a happy face and proclaimed a “better than expected” jobs report Friday. The welcomed good news was that private sector employers created 234,000 new jobs in April, the largest one month increase since March, 2006. Government added 56,000 mostly temporary, census jobs bringing the total to 290,000 for the month. On the negative side, the unemployment rate went up from 9.7% to 9.9%.
President Obama stepped in front of the cameras to take credit for the positive part of the report.
Yes, we’ve got a ways to go but we’ve also come a very long way and we can see the difficult and at times unpopular steps we’ve taken over the past year are making a difference.
Predictably, the President is now trying to plant in the minds of the uninformed the notion that his “difficult and unpopular steps,” have been successful.
The stimulus, $787 Billion in extra borrowing and spending was Obama’s first monster-bill. It was enacted during the third week of his presidency in an atmosphere of panicked urgency, by Senators and Congressmen who did not read it because it’s final draft had not yet been printed the day they voted.
Obama and House and Senate Democrats promised immediate results in the form of job creation . They said urgent action was vital because more jobs would be lost each day enactment was delayed.
- They did not promise that the unemployment rate, then at 7.7% would be at 10.1% nine months later and 9.9% fifteen months later. In fact, they promised the unemployment rate would never exceed 8% if the stimulus were enacted.
- They did not promise that if the government borrowed and spent an extra $787 Billion dollars, 3.9 million more jobs would be lost over the next eleven months.
But now the President hopes you will be duped into believing that because employment is finally beginning to grow his stimulus is, in his words, “making a difference.”
The charts above show the different results from two very different government responses to a deep recession and massive job losses.
Thirteen months ago President Obama inherited a deep recession. His response has been to:
- Expand the bailout program begun under the Bush administration;
- Enshrine as explicit government policy the theory that some companies and financial institutions are deemed too-big-to-fail and will always be rescued from the consequences of their own negligence, especially if their workforce is unionized;
- Enact the stimulus, now 15 months old and nearly $800 Billion in extra borrowing and spending, hyped with the promise that it would, in Obama’s words “immediately jumpstart job creation;”
- Subsidize blue-sky energy schemes that are too expensive and unreliable to survive in the competitive marketplace;
- Enact a 2,500 page government take-over of health care and health insurance that will increase costs and, ultimately, ration care.
- Introduce legislation that would cause an artificial, government imposed energy shortage and add a new tax on all energy consumption by businesses and households.
- Schedule massive tax income increases on small businesses and investors to begin in 2011.
- threaten to institute a value added tax.
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. Reagan’s economic program, based on his commitment to liberty, was the opposite of Obama’s:
- Reduce regulation and government intervention in the economy;
- Cut taxes to leave 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 yoke of imperial government.
The upper chart shows the job market has just begun a tentative recovery after 29 months of Bush/Obama policies. There are still 2.7 million fewer Americans now employed than when the stimulus was enacted in 15 months ago.
The results in the lower chart speak for themselves. Reagan’s policies turned the job market around after 17 months of losses. The Reagan economy grew continuously for 90 months, creating a total of 21 million new jobs, for a 24% increase in the number of Americans who were employed.
Updates in response to comments:
The charts are called “incredibly misleading” and “a profoundly dishonest comparison.” But they both start at the moment of record high employment, and then track the decline and eventual increase in jobs. They simply present data from public record.
Bush took two actions against recession and the economic crisis: He persuaded Congress to enact “stimulus” consisting of small tax rebates and he began the T.A.R.P. bailout program. Obama persuaded Congress to enact another, four times larger “stimulus.” He put more than twice as much into T.A.R.P. bailouts as Bush did, and expanded the scope of T.A.R.P. The Bush and Obama policies were more similar than different. In hindsight, Bush’s program turns out to have been “Obama light.” The implication that Obama embarked on some radically different strategy is simply wrong.
As Drew pointed out, the Reagan administration began in the midst of economic crisis. Inflation was at it’s highest rate ever. Interest rates were at an 80 year high. The Federal Reserve, under Chairman Volker had embarked on monetary tightening. The economy was being choked and job loss was inevitable. But even if one rejects the idea that Reagan inherited a recession, one still must acknowledge that Reagan’s recession-fighting strategies, tax cuts and deregulation, were directly opposite the Obama strategies.
Victor says job growth was somehow better in recent months than in 1983. But, in the first four months of the recovery that began in January, 1983, 21% of the lost jobs were replaced. In the first four months of the recovery that began in January of this year 12% of the lost jobs were replaced, and a quarter of those are temporary, mostly part time census jobs that will disappear later this year.
In 1983 all the lost jobs were replaced within ten months. At the recent rate of growth it will take 34 months to replace the jobs lost in this recession.