Obama misguided about reasons for dismal June jobs report

July 11, 2011

On Friday, July 9, the government released its June jobs report.  Employers added just 18,000 jobs in June, the fewest in nine months, and the unemployment rate rose to 9.2 percent, far above the peak promised by the Obama Administration.  The economy needs to add between 100,000 and 125,000 jobs per month just to keep pace with population growth.

 

It was just the latest disappointing reminder that the Obama economy is not working for America, made even worse because the May figures were adjusted downwards from 54,000 to 24,000.

 

Despite this current recession’s end in June of 2009, making this the weakest recovery of the post-WWII era, 13.9 million Americans remain unemployed and millions more are underemployed.  And this doesn’t account for the 250,000 who have left the job force having given up looking for jobs.  Is it any wonder that 75% of the American people still believe that a depression still exists?

 

Twenty nine months have passed since the stimulus package was first passed, yet trillions in debt later the U.S. continues to suffer 9.2 percent unemployment, despite the administration’s claim that the stimulus created or saved 2.4 million jobs at a cost to American taxpayers of $278,000 per job.

 

Shortly after the release of the government’s monthly jobs report, President Obama delivered a statement in the Rose Garden of the White House which attributed the lack of hiring by companies over their perceived uncertainty as to the outcome of the debt limit standoff in Congress.

 

What the Obama administration fails to realize is why companies aren’t hiring even though profits are good.   Investors and businesses make decisions on a forward-looking basis.  Debt overhang, the President’s threatened tax hikes, overregulation of businesses by the EPA and NLRB, etc., and uncertainly over ObamaCare are the culprits for the lack of economic growth, investments, and job creation.

 

As history records, in the 1930’s New Deal lawmakers doubled federal spending, yet unemployment remained above 20% until WWII.

 

A lesson yet to be accepted by the Obama administration, and by those in charge of blue states like Illinois, is that government does not create jobs.  The private sector does it best by releasing the entrepreneurial spirit that has guided this nation so well in the past.

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