The Obama administration has pursued an economic policy of raising taxes on job creators, imposing regulatory burdens on businesses and shoveling mountains of taxpayer money into the hands of green energy firms which are often linked to Democrat fundraisers. Does it work to create jobs? Let’s see.
A record number of Americans are unemployed
Amid disappointing unemployment numbers that fell 80,000 jobs short of projections, another number is raising eyebrows: the number of Americans not in the labor force has hit a record high 87,897,000.
This figure explains why overall unemployment dropped from 8.3% to 8.2%, as the Department of Labor’s unemployment figure does not include people who have given up hope and are not actively seeking employment.
When the number of individuals who have stopped looking for a job and/or who are working part-time but desire full-time employment is included–a figure known as the “underemployment rate”–real unemployment stands at 19.1%.
If you want to know if the President is doing a good job of creating jobs, just count the number of people who are unemployed. If the number of people who are unemployed is at a RECORD HIGH, then you need to elect a new President. Preferably someone who understands basic economics.
The real unemployment rate is 14.5%
From the American Enterprise Institute.
Recall that back in 2009, White House economists Jared Bernstein and Christina Romer used their old-fashioned Keynesian model to predict how the $800 billion stimulus would affect employment. According to their model—as displayed in the above chart, updated—unemployment should be around 5.8% today.
But the true measure of U.S. unemployment is far worse:
1. If the size of the U.S. labor force as a share of the total population was the same as it was when Barack Obama took office—65.7% then vs. 63.8% today down from last month—the U-3 unemployment rate would be 10.9%.
2. But what if you take into the account the aging of the Baby Boomers, which means the labor force participation (LFP) rate should be trending lower. Indeed, it has been doing just that since 2000. Before the Great Recession, the Congressional Budget Office predicted what the LFP would be in 2012, assuming such demographic changes. Using that number, the real unemployment rate would be 10.5%.
3. Of course, the LFP rate usually falls during recessions. Yet even if you discount for that and the aging issue, the real unemployment rate would be 9.4%.
4. Then there’s the broader, U-6 measure of unemployment which includes the discouraged plus part-timers who wish they had full time work. That unemployment rate, perhaps the truest measure of the labor market’s health, is still a sky-high 14.5%.
5. The employment-population ratio dipped to 58.5% vs. 61% in December 2008. An historically low level of the U.S. population is actually working.
People keep talking about intelligent Barack Obama is. But shouldn’t we judge a person’s intelligence based on what they can produce? If you measure Obama’s intelligence based on his results – adding trillions and trillions of dollars to the debt while lowering the number of people who have jobs to a record low – then a fair-minded observer would say that Barack Obama is a person of low intelligence. He simply is out of his league. He would be out of his league if he tried to run a lemonade stand. If no one – Republican or Democrat – would hire this man to work in a private business that they owned, why would we ever elect him to be President?