Joe Biden said it last night in his speech: “We’ve turned the corner.”
If you read this article, you will see how right – and yet how terribly, wickedly wrong – Joe Biden and the Obama administration truly are.
The key to understanding the official (U-3) unemployment rate is the bizarre measure by which people who are out of work are counted as “unemployed” only if they’re actively looking for a job. Only 63 percent of working-age adults are working in Obama’s God damn America. Millions of people – over 23 million - have dropped out of the work force, making this unemployment statistic not only meaningless, but cruel, as oppressed people simply don’t count any more.
The most accurate description of the August unemployment report is coming from the UK:
Are you better off? Just 96,000 jobs added in August as 368,000 people LEAVE the workforce in bleak employment report dealing blow to Obama re-election hopes
• Lowest workforce participation rate since September 1981
• Jobless rate drops to 8.1 per cent but only because workforce shrinks
• President Barack Obama knew of figures before big speech
By Toby Harnden In Charlotte, North Carolina
PUBLISHED: 08:07 EST, 7 September 2012 | UPDATED: 09:04 EST, 7 September 2012
Just 96,000 American jobs were added in August in a bleak monthly jobs report as 368,000 left the workforce, bringing labour market participation down to its lowest level for 31 years and dealing a blow to President Barack Obama’s re-election chances.
The national unemployment rate dropped to 8.1 per cent, down from 8.3 per cent, but this was only because so many people gave up looking for work. If the participation rate had not dropped so precipitously, unemployment would have risen to 8.4 per cent.
Factory employment fell by the most in two years and temporary-help companies eliminated positions for the first time in five months. The 69.9 per cent labor force participation rate for men is at lowest level recorded since the US government began tracking it in 1948.
According to James Pethokoukis of the American Enterprise Institute, the unemployment rate would be 11.4 per cent if the labour force participation rate had remained what it was when Obama took office in January 2009.
President Barack Obama was made aware of the figures before he took the stage to deliver his prime-time address at the Democratic convention on Thursday night, which could account for his sometimes grim demeanour as he spoke.
In a biting statement, Romney said: ‘If last night was the party, this morning is the hangover. For every net new job created, nearly four Americans gave up looking for work entirely. This is more of the same for middle class families who are suffering through the worst economic recovery since the Great Depression.
‘After 43 straight months of unemployment above eight per cent, it is clear that President Obama just hasn’t lived up to his promises and his policies haven’t worked. We aren’t better off than they were four years ago. My plan for a stronger middle class will create 12 million new jobs by the end of my first term. America deserves new leadership that will get our economy moving again.’
On Thursday night, Obama laid out his case for being re-elected to a second term by comparing himself to Franklin D. Roosevelt, who won an unprecedented four presidential elections and led America to recovery after the Great Depression.
Stalling: The growth of new jobs has taken a significant dip compared to the beginning of the year
The grim economic data came as Obama and Romney were deadlocked in the national opinion polls in a race that has been too close to call for many months. It was the last opportunity for either man to use a defined ‘moment’ to change the trajectory of the race before the three presidential debates in October.
The labor force participation rate declined again to 63.5%. That is down from 65.7% when Obama assumed office in January 2009. That 2.2% destruction in the American workforce participation rate, but it is actually huge:
“In the latest, much celebrated, unemployment report, the labor force participation rate had plummeted to 63.7 percent, the most rapid decline in U.S. history,” writes economist Peter Ferrara.
Does that sound like a president who should be reelected? Obama is presiding over “the most rapid decline in U.S. history.” His polices are failing about as massively as they could fail.
Fox New reported:
Friday’s report was discouraging throughout. Hourly pay fell, manufacturers cut the most jobs in two years and the number of people in the work force dropped to its lowest level in 31 years.
As stated in both articles, this is the lowest participation in the employment force in 31 years. And the rate for men is the lowest number EVER RECORDED since tracking began back in 1948.
I’ve written about this growing disaster: two years ago, Obama had degenerated the workforce to it’s lowest participation rate in 25 years. Last year, Obama sunk the labor participation rate to its lowest level in 27 years. Just in May of this year, it was at the lowest level in 30 years. And now it is at the lowest level in 31 years and sinking like a stone.
At the rate we’re going, as I’ve said, Obama will be crowing about zero percent unemployment and he and his government cronies will be the only people in America with damn jobs.
Obama has led America into a jobs holocaust. The only reason the unemployment rate went down is because the participation rate dropped. If we calculated unemployment by the same participation rate that George Bush handed Obama, unemployment would be 11.4%.
What is true of the labor force participation is also true of business start ups in America under Obama. Two years ago – and this being during the so-called Obama “recovery,” the number of U.S. business start-ups and dropped 24% – and how the hell does that happen in a “recovery” when you’re supposedly coming out of a recession that you blame Bush for? Last year the number of business start-ups had plunged to a 25 year low - which was THE LOWEST level ever measured since the statistic began to be tracked in 1986. Now under Obama’s utterly failed leadership and under his Marxist class warfare, the number of business start-ups is at a 30 year low.
Obama isn’t adding anywhere NEAR enough jobs to keep up with the 10 million people who have joined the workforce by virtue of becoming adults during his presidency. And when you add the discouraged workers who are simply abandoning all hope of any change in Obama’s rhetoric-based “reality” of “hope and change,” 96,000 jobs is a thin stream of piss in the Pacific Ocean.
If you have any damn clue whatsoever about what is going on in this economy, you have simply got to be an evil psychotic communist to believe that Barack Obama should be reelected.
Obama has made his entire presidency about demonizing and fearmongering the last presidency. But that last presidency had an average unemployment rate of 5.26%, basically the same as Bill Clinton whom Democrats idolize. Versus Obama, who promised the American people that if his now known to have been a failed stimulus, unemployment would never go above 8% (whereas it’s been over that for his entire presidency) and the current unemployment rate was supposed to be 5.4% today.
Obama is great at making promises; but he’s just as bad at fulfilling them as he is at making them. He believes he can make a bunch of promises and then move on to make a new batch of promises. That was the essence of his speech last night.
In August, two months ahead of the presidential election ahead of which this number will be one of the most critical and talked about, the US generated just 96,000 non-farm payroll jobs, on expectations of 130K additions, and compared to the July number of 163,000, now revised to 143,000K. Private payrolls rose by a modest 103,000, much lower than the expected number of 142K, and down from July’s revised 162K. -15,000 manufacturing jobs were lost, compared to the expected +10K, and sadly just a little bit short of Obama’s recent promise to add 1 million manufacturing jobs by 2016. Finally, while the unemployment rate came lower (surprise, surprise: this is what appears in newspapers) at 8.1%, far lower than expectations of 8.3%, and below last month’s 8.3%, the broad total underemployment rate (U-6) continues to be sticky at 14.7%. Birth Death added 87,000, up from July’s 52,000. The reason for the drop in the unemployment rate: labor force participation dropped to 63.5%, down from 63.7%. Oddly enough, this report leaves the NEW QE door open, even as Obama can take the accolade for a declining unemployment rate. Win-win for everyone
Just to point out what Zero Hedge hinted at: there is a constant monkeying with the data such that for some reason every single report ends up ultimately being revised DOWN under Obama. And it all seems to be geared toward a game of giving Obama talking points on the one hand and the Federal Reserve more power to devalue our currency on the other.
I like the way Clint Eastwood put it following his “empty chair” talk at the RNC:
“President Obama is the greatest hoax ever perpetrated on the American people.”
We’ve turned the corner, all right. And 368,000 more Americans showed their agreement this month by abandoning hope of getting a job in the Obama regime. Under this failed presidency, we are heading at breakneck speed toward a depression unlike anything this nation has ever seen. Because if Obama is reelected, you will see businesses immediately do the exact same thing they did when he was elected in 2008: bail out of America as the American people betray them by electing a business-hating Marxist. Only this time it will be worse as businesses do what millions of Americans have already done in despair and quit “participating” in the US economy.