The most recent jobs report by the Department of Labor jobs report indicated that private sector jobs fell by 190,000 in the past month. The U.S. has lost 2.2 million jobs since the Stimulus, putting us 7.2 million jobs short of the projected goal.
“This morning on MSNBC, former Rep. Joe Scarborough (R-FL) pressed prominent Keynesian economist and director of the Earth Institute at Columbia University Jeffrey Sachs on whether it was too early to declare President Obama’s stimulus a failure. Scarborough had to ask the question twice, but Sachs finally relented: ‘It did fail.’” (DC Junkies)
Despite it’s obvious failure, the WH is still pushing the “absolute success” of the Stimulus according to Joe Biden. it wasn’t too long ago that VP Joe said it succeeded beyond his wildest imagination, which tells us nothing more than he has a serious lack of imagination. Biden claimed it took years for us to get there and will take years for us to get them back. He also said that we already had 6% unemployed.
The fact is that the U.S. has lost 55.4 million jobs since the 20008 and only added 46.5 million jobs. That means about 8 million jobs were lost.
(from DC Junkies) Why should anyone care exactly how many jobs were lost and created since all that really matters is the net number of Americans who are no longer employed?
Here’s why: despite an unemployment high of just 6.4%, more jobs were lost in the first seven quarters of the 2001 recession than were lost in the first seven quarters of this recession.
How is that possible?
How could job losses have been worse in 2001 but unemployment so much higher now?
Weak job creation.
The latest Bureau of Labor and Statistics data show that employers have created 8.6 million fewer new jobs this time around than they did almost a decade ago.
Heritage Senior Labor Policy Analyst James Sherk estimates that lower job creation accounts for 65 percent of the recession’s decreased employment.
Our nation’s unemployment rate is hovering near 10% not because of record job losses, as Biden suggests, but because of record job non-creation.
Private sector employers have gone on strike.
Contrary to what the President’s economic wizards and New York Times columnists believe, massive government deficit spending does not stimulate job creation.
President Obama does not have a secret vault of money he can just throw at the American people. The resources the government spends come from the economy. When the government increases spending, it crowds out the resources that business owners could have invested in their enterprises. Private investment falls sharply when government spending rises. According to Sherk, annual private fixed nonresidential investment has fallen by $327 billion since the recession started— a 19 percent drop. Less private investment means less hiring.
And then there is the rest of the Obama agenda that has created, and is creating, significant economic uncertainty: Obamacare, EPA carbon regulations, financial regulations and impending tax hikes.
Renouncing these policies, and canceling the rest of the stimulus, would do more to spur private sector job creation than anything this White House has done so far…
President Obama issued a statement about the jobs outlook with cautious optimism. Unfortunately, he is missing the part about the job creation needed by the private sector.
“WASHINGTON — The day after Congress raised America’s debt ceiling above $14 trillion — potentially adding another $6,000 in debt to every man, woman and child — a surprisingly upbeat January jobs report that showed unemployment dipping below 10 percent prompted President Obama to declare that “we are climbing out of the huge hole that we found ourselves in.”
Obama assessment was partly based on a report out Friday that showed the unemployment rate dropping in January from 10 to 9.7 percent, while employers shed only 20,000 jobs.
But it’s not all roses, as the Labor Department revised its past employment estimates to show that job losses from the Great Recession have been much worse than previously state. The economy has shed 8.4 million jobs since the downturn began in December 2007, up from a previous figure of 7.2 million. That’s the most jobs lost in any recession, as a percent of total employment, since World War II.
The figure for November was revised higher, however, to show a gain of 64,000 jobs. That was initially reported as a gain of 4,000.Read more here: 7.2 million jobs lost…”