Friday, August 3, 2012

Forget The Obama Hype, This Was A Very Bad Jobs Report

Obama will once again hit the airways and tell us how many consecutive months he's had job creation under his "plan" and, as usual, he will also say that his Administration has created x-million jobs.  But all that is just so much political B.S.  You have to ask yourself this simple question: "If the unemployment rate rose last month, how is it possible that the economy could have actually added 163,000 new jobs?"  The answer is as simple as the question.  The workforce size was being manipulated.

Here are the "real" facts.  For 42 consecutive months, the unemployment rate has been above 8%.  In the last 4 months, the rate has gone "up" from 8.1% in April to 8.2% in May; and, from 8.2% in June to 8.3% in July.  That's the wrong direction.  When Obama took office, the unemployment rate was 7.6%. At the same time, the workforce size was 154.2 million and there were 11.6 million unemployed.  Today, the workforce size is 155 million workers and the unemployed number is 12.8 million.  Net those numbers all together and you would find that the economy actually lost 400,000 jobs since Obama took office; not created them.  The bottom line is that you couldn't have created x-million jobs when, on a net basis, our economy actually lost jobs.

Finally, let's not forget this propagandist chart that the President's economic team put together to justify a near trillion dollars in stimulus spending:
Click on graph for enlarged view

According to the chart, the stimulus was to keep unemployment under 7.9%; and, that, by now, the unemployment rate should be around 5.6%.  Instead, the economy did even worse than what Obama said it would do without stimulus.  Without stimulus, unemployment was supposed to top out at 9%.  In actuality, with stimulus, the unemployment rate hit 10.2%.  Without stimulus, today's unemployment rate was projected to be at about 6%.  Yet, for months, the stimulus has kept us consistently above 8%.  And, now, it's rising again..

Here's a Daily News story on the jobs report:

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