Zero Jobs: The Needless Misery Continues

The Chart compares the results of the Obama strategy of massive government borrowing, spending and intervention in the private sector with the results of the Reagan approach of deregulation, lower income tax rates and greater liberty.

  • Employers added ZERO new jobs in August.
  • The statistics for June and July were revised, showing 58,000 fewer jobs than previously reported.
  • The unemployment rate was unchanged at 9.1%
  • If the 2011 rate of job growth continues it will take until 2016 to equal the 2007 level.  Even then, we’ll be 14 million jobs short of full employment because of population growth.

Ronald Reagan ignited an economic boom with history’s proven prosperity formula:

Less government = more jobs.

But today we’re in the third year of needless unemployment and misery because voters and the leaders they elected have ignored history and have fallen for the seductive, “progressive” promise of prosperity through expanded central government power and intervention.

Thirty two months ago President Obama inherited a deep recession, caused largely by malfeasance within two government sponsored mortgage lenders, Fannie Mae and Freddie Mac.  Obama’s advisers told him not to let a crisis go to waste, but to use it as a pretext to increase government’s size and intervention in the private economy.  He took the advice and as a result the private sector is reeling from a tsunami of new laws and regulations.  Government spending and debt has exploded.  The result is the worst job market in eight decades.

But it doesn’t have to be this way!

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:

  • Reduce regulation and government intervention in the economy;
  • Enact sweeping tax cuts that were phased in over three years, beginning 1982.  Each of the 16 income tax bracket rates were reduced by at least 25%.  The top bracket rate was cut from 70% to 50%.  Later it was further reduced to 28%.  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 from the restraints of government regulation.

The results, shown in the chart, speak for themselves. Reagan’s policies transformed what had been a decade of stagflation into an economic boom and when he ran for reelection the voters rewarded him with the largest Electoral College majority in American history.

13 Comments so far

  1. […] more here: Zero Jobs: The Needless Misery Continues | Liberty Works | Posted in Government Tags: and-failed-, and-misery, and-the, because-voters, elected-have, […]

  2. Sarah Livingston on September 2nd, 2011

    Too bad the media doesn’t ever report these facts. This started out as the Bush recession that wasn’t his fault alone. But now it’s the Obama recession and it is his fault alone.

  3. Thousand Flowers Blooming on September 2nd, 2011

    Private sector jobs are growing – over 2 million in a year. Only the loss of government jobs pulls the total down.

    Isn’t this what conservatives have always wanted? Why don’t you put up a graph on that?

  4. TampaRonnie on September 2nd, 2011

    I thought this headline was a joke or exaggeration – zero jobs. So I went and looked at USA Today to see what the real number was. It’s not a joke! That is the real number!

    Zero jobs in a whole month and this President is still blaming Bush and the Republicans in the House. He doesn’t have a clue what to do.

  5. AzTex on September 2nd, 2011

    TampaRonnie isn’t paying attention. Obama’s stimulus worked as planned and saved millions of jobs. Here’s the real news from a more knowledgeable source

    http://www.cnn.com/2011/OPINION/08/31/bernstein.obama.recovery/index.html?hpt=op_t1

    The obstructionist Republicans want a bad economy because they think it will help them win the next election.

  6. Gabriel on September 2nd, 2011

    We’re broke. We cant afford any more bailouts or stimulus. But Dumbama plans a big speech next week to tell us about even more borrowing and spending. Where. Enough all ready!

  7. Gabriel on September 2nd, 2011

    I cut myself off.

    I started to say Where is the money coming from? There is not one reporter in the whole media with enough guts to ask Obama where the money will come from for the stimulus and bailouts he is going to tell us about next week.

    Damnit ask him! Ask him and don’t back down until he answers. It’s coming from China and from federal reserve printing presses. Look at the price of gold. It means inflation like you never saw before is coming soon.

  8. Drew on September 2nd, 2011

    I think we should have a government guaranteed loan to create “green jobs,” you know, like maybe a half a billion for a solar panel plant near San Francisco………….oh, wait.

    A halg bill doen the toilet…..no jobs. Must be Bush’s fault.

  9. TampaRonnie on September 2nd, 2011

    AzTex –

    The Republicans probably see a bit of silver lining for themselves. That doesn’t mean they’re trying to cause this horror.

    And you say the stimulus “worked as planned?” You weren’t paying attention when Obama promised “shovel ready” jobs would be created right away and unemployment wouldn’t go over 8%. He never said his PLAN was 9%plus unemployment as far as the eye could see, with ZERO, ZIP, NADA in August!

    You must have been high on something and unable to pay attention.

  10. […] from: Zero Jobs: The Needless Misery Continues | Liberty Works | Tags: and-greater, jobs, liberty-works, needless, obama, results, sector-with, spending-and, […]

  11. AzTex on September 3rd, 2011

    Poor TampaRonnie is a misinformed know-nothing.

    If you weren’t asleep during Econ 101 you would know what most educated people understand. It’s a simple principle called the multiplier effect. A $1.00 increase in aggregate demand becomes $1.70 as it moves through the economy.

    Almost all the stimulus was smart investment, targeted to take advantage of the multiplier effect. We didn’t know just what a train wreck the Bush-Republican-Conservative recession was at the end of 2008 when Obama and key Congressional leaders were writing the details of the recovery act. Their estimates were off because unemployment was already over 8% but they didn’t know it yet because the BLS was still counting job losses.

    So yes, the 8% estimate turned out to be a mistake made from lack of up to the minute information. But the FACT that the stimulus worked and prevented even higher unemployment is indisputable. As the non-partisan CBO just reported it saved 4 million jobs.

    Only you tea party yahoos who believe the Republican propaganda that it failed. You should back to the trailer park and read some more of your bible fairy tails. Let the grownups handle the economy.

  12. Grant90 on September 3rd, 2011

    Only an illiterate idiot believes deregulation succeeded for any but billionaires, but don’t worry, your GOP will destroy the nation before we ever see 100% deregulation, and 100% regulated China WILL whip our asses.

    Got a cute daughter for the Chinese and Russian rulers soon to come?

  13. Drew on September 5th, 2011

    Laugh of the day:

    “If you weren’t asleep during Econ 101 you would know what most educated people understand. It’s a simple principle called the multiplier effect. A $1.00 increase in aggregate demand becomes $1.70 as it moves through the economy.”

    So, AzHole, erTex, what did President Obama’s very own economic advisors put the spending multiplier at……..and the tax multiplier?? And guess what, the spending multiplier isn’t 1.7.

    You get extra credit if a) you can even name his advisor who did the academic study, b) you can cite an opposing view of what the spending multiplier is, and why.

    BTW – hint. Its a she. And she quit. Wonder why???