Back in January, while Obama was flush in his promises of “hope and change,” unemployment was at 7.6% as George Bush was moving out.
That was high, granted. Particularly for a president whose average unemployment rate during his eight-year term in office was 5.2%.
Unemployment was high enough that Obama was successful in turning fearmongering into an art form. As he followed his chief of staff’s advice to “Never let a serious crisis go to waste.” Obama said that if we didn’t vote for his unparalleled in all of human history “stimulus” spending, we would suffer. But if we passed his stimulus, on the other hand, his administration “predicted that the passage of a large economic-aid package would boost the economy and keep the unemployment rate below 8%.” Obama called it “the American Recovery and Reinvestment Act of 2009.”
Virtually every single Republican voted against the “stimulus,” predicting it would fail and make bad turn to worse. Obama demonized them as “the party of no” and demagogued them as “blocking progress.”
Let me ask you: are you better off than you were the day that Obama took the oath of office and put his feet up in the Oval Office? Are you better off after Democrats took total control of both the House and the Senate? Have you experienced “recovery,” or has it been a “wreckovery“?
Obama’s stimulus seems to be a pretty good deal – if you are a dead person or an incarcerated felon.
How high is unemployment under Obama?
The “official” government-reported rate remained unchanged this month at 9.6% in spite of the loss of 95,000 jobs. But sadly the government under Barack Obama has already proven that he is more than capable of never-before-seen shenanigans.
The actual unemployment rate is probably even more frightening – and very likely to get worse.
Gallup – using the raw “seasonally unadjusted” numbers – calculates that the unemployment rate is now back into double-digit territory at 10.1%.
October 7, 2010
Gallup Finds U.S. Unemployment at 10.1% in September
Underemployment, at 18.8%, is up from 18.6% at the end of August
by Dennis Jacobe, Chief Economist
PRINCETON, NJ — Unemployment, as measured by Gallup without seasonal adjustment, increased to 10.1% in September – up sharply from 9.3% in August and 8.9% in July. Much of this increase came during the second half of the month — the unemployment rate was 9.4% in mid-September — and therefore is unlikely to be picked up in the government’s unemployment report on Friday.
Certain groups continue to fare worse than the national average. For example, 15.8% of Americans aged 18 to 29 and 13.9% of those with no college education were unemployed in September.
The increase in the unemployment rate component of Gallup’s underemployment measure is partially offset by fewer part-time workers, 8.7%, now wanting full-time work, down from 9.3% in August and 9.5% at the end of July.
As a result, underemployment shows a more modest increase to 18.8% in September from 18.6% in August, though it is up from 18.4% in July. Underemployment peaked at 20.4% in April and has yet to fall below 18.3% this year.
Friday’s Unemployment Rate Report Likely to Understate
The government’s final unemployment report before the midterm elections is based on job market conditions around mid-September. Gallup’s modeling of the unemployment rate is consistent with Tuesday’s ADP report of a decline of 39,000 private-sector jobs, and indicates that the government’s national unemployment rate in September will be in the 9.6% to 9.8% range. This is based on Gallup’s mid-September measurements and the continuing decline Gallup is seeing in the U.S. workforce during 2010.
However, Gallup’s monitoring of job market conditions suggests that there was a sharp increase in the unemployment rate during the last couple of weeks of September. It could be that the anticipated slowdown of the overall economy has potential employers even more cautious about hiring. Some of the increase could also be seasonal or temporary.
Further, Gallup’s underemployment measure suggests that the percentage of workers employed part time but looking for full-time work is declining as the unemployment rate increases. To some degree, this may reflect a reduced company demand for new part-time employees. For example, employers may be converting some existing part-time workers to full time when they are needed as replacements, but may not in turn be hiring replacement part-time workers. Another explanation may relate to the shrinkage of the workforce, as some employees who have taken part-time work in hopes of getting full-time jobs get discouraged and drop out of the workforce completely — going back to school to enhance their education, for example, instead of doing part-time work. It is even possible that some workers may find unemployment insurance a better alternative than part-time work with little prospect of going full time.
Regardless, the sharp increase in the unemployment rate during late September does not bode well for the economy during the fourth quarter, or for holiday sales. In this regard, it is essential that the Federal Reserve and other policymakers not be misled by Friday’s jobs numbers. The jobs picture could be deteriorating more rapidly than the government’s job release suggests.
Conservative economist John Lott boldly predicted when the stimulus was past that it would INCREASE unemployment. Looking at today’s unemployment rate, who was proven right, and who has been proven completely wrong? That same John Lott also surveyed other countries and demonstrated that those nations which did NOT engage in a massive stimulus like we did have universally fared better than countries that followed Obama. And other economists have demonstrated that incredibly costly and redistributionist stimulus policies have NEVER stimulated economies.
Obama’s stimulus has been a complete disaster. His administration assured us that it would create millions of “shovel-ready jobs.” But the AP discovered that nothing of the sort had happened:
“Even within the construction industry, which stood to benefit most from transportation money, the AP’s analysis found there was nearly no connection between stimulus money and the number of construction workers hired or fired since Congress passed the recovery program. The effect was so small, one economist compared it to trying to move the Empire State Building by pushing against it.”
And, of course, it hasn’t just been Obama’s and the Democrats’ stimulus that entirely failed. Democrat energy policies have resulted in nearly a million jobs just vanishing – possibly forever.
If Gallup’s data is correct, we will likely be seeing another wave of unemployment soon. The numbers aren’t getting better; they’re getting worse. We have now experienced unemployment above 9.5% for fourteen consecutive months. And just to state the obvious, every single one of those months have been on Obama’s watch.
While Obama was on vacation late last August, I compiled some of the disasters that were gripping the US as Obama was gripping a golf club:
- Jobless claims rise to highest level in 9 months.
- Pre-owned home sales drop 27.2% to lowest level in 15 years.
- New home sales fall 12.4% to weakest level since 1963.
- 1 in 10 homeowners with a mortgage are at risk of foreclosure.
- US foreclosures up 4%; top 300,000 for 17th straight month (Obama’s been president for 19 months).
- 14.42% of all mortgages either delinquent or in foreclosure.
- Foreclosures jump 25%.
- New durable goods orders excluding transportation post largest decline in 1-1/2 years.
- Frightening trend: Commercial Property Owners Choose to Default.
- 401(k) hardship withdrawals, loans SOAR.
- Dow Jones dips below psychologically-important 10,000 level.
- Nightmare ‘Hindenburg Omen’ triggered, but economic fundamentals just as scary.
- US unemployment figures increase fears of double-dip recession.
- Taliban in Afghanistan strengthening, spreading; violence surging.
- Top Marine General says Obama Afghan deadline gives sustenance to enemy.
- Spending baseline has increased $4.4 trillion under Democrat control.
- 2010 Federal Deficit Second Largest in 65 Years (2nd only to 2009).
- Trade gap widens, largest increase in imports in 26 years.
- Weak GDP raises fears, with Fed running out of options.
Since then, we’ve seen other records, such as “Highest poverty rate in fifty years,” and “Record number of Americans now on food stamps.” We’ve got bad news measurements such as “Dollar tumbles to 15-year low” and “printing money like mad to ward off deflation.”
Obama spent half his first term passing his ObamaCare boondoggle. Now Democrats are running against it. Not one Democrat is campaigning on having passed health care or the stimulus. Because both are a cause for shame, not pride.
For that matter, even Harry Reid’s OWN SON – who is running for governor as a Democrat – says that his father’s ObamaCare plan will hurt Nevada.
ObamaCare will be a $6.25 TRILLION tax on Americans and on the US economy unless the Republican Party receives enough votes to repeal it.
Economists now realize that FDR’s policies actually prolonged the Great Depression by a whopping seven years. And that is precisely what the policies of Barack Obama and the Democrats have done – prolong the suffering of Americans.
The last time Republicans actually ran the government in November 2006, unemployment was only 4.5%. Democrats used the Iraq War and Katrina to demonize Republicans. And those Democrats have done so well with the government ever since.
The last federal budget passed by Republicans – the FY2007 budget – had a deficit of $161 billion. The very next year, under Democrat control, the FY2008 budget had a deficit nearly three times higher – $459 billion. And now Democrats aren’t even bothering to pass budgets, and our annual deficit is estimated at over $1.3 trillion.
These are the dark days that Obama is warning Americans of returning to: Low unemployment and low (certainly by comparison!!!) spending.
Are you better off after 2 years of Obama, and after four years of Nancy Pelosi and Harry Reid?