Another Disastrous Jobs Report. But Obscuring the Recovery?
First, the July jobs reports. As James Pethokoukis reports at the American Enterprise Institute’s blog, AEIdeas, “America’s labor market depression continues.” He summarizes it this way:
“Only in a world of lowered, New Normal expectations was the July jobs report anything less than another disaster for U.S. workers. Nonfarm payrolls rose 163,000 last month as the unemployment rate rose to 8.3%. In addition, employment for May and June was revised by 6,000 jobs.”
Several of the key points Pethokoukis makes include the following:
- “Not only is the 8.3% unemployment rate way above the 5.6% unemployment rate that Team Obama predicted for July 2012 if Congress passed the $800 billion stimulus plan. It’s way above the 6.0% unemployment rate they predicted if no stimulus was passed.
- “Job growth, as measured by nonfarm payrolls, has average about 75,000 jobs a month during the Obama recovery for a total of 2.7 million jobs. Context: During the first three years of the Reagan Recovery, job growth averaged 273,000 a month for a total of 9.8 million. If you adjust for the larger U.S. population today, the Reagan Recovery averaged 360,000 jobs a month for a three-year total of 13 million jobs.
- “This continues to be the longest stretch of 8% or higher unemployment since the Great Depression, 42 straight months.
- “If the labor force participation rate was the same as when Obama took office in January 2009, the unemployment rate would be 11.0%.”
With the jobs information in mind, let me turn to an American Spectator column posted by Northern Virginia’s Peter Ferrara (HT Mark Levin Show) who discusses what he says is the “rhetorical practice” of the president “of trying to take advantage of what he calculates the average person does not know, and his party-controlled, so-called mainstream media won't report.” According to Ferrara, it “can be seen over and over in the Obama campaign.” For example, he writes:
“President Obama and his chairman of the Council of Economic Advisors, Alan Krueger, brag that private sector jobs have now grown for "28 straight months." Obama and Krueger apparently think most Americans do not know that job growth is the norm and not the exception for the American economy. In the 62 years from January 1946, after World War II, until January 2008, jobs grew in 86% of the months, or 640 out of 744. Reagan's recovery produced job growth in 81 out of its first 82 months, with 20 million new jobs created over those 7 years, increasing the civilian workforce at the time by 20%. Even George W. Bush oversaw 52 consecutive months of job growth, including nearly 8 million new jobs created after his 2003 capital gains and dividends tax rate cuts became effective (which Obama is dedicated to reversing).
“The relevant streak of Obamanomics was extended in the June jobs report. That report established that under President Obama America has suffered 41 straight months of unemployment over 8%, which the Joint Economic Committee of Congress confirms is the worst recovery from a recession since the Great Depression almost 75 years ago. Indeed, the last time before Obama unemployment was even over 8% was December 1983, when Reaganomics was bringing it down from the Keynesian fiasco of the 1970s. It didn't climb back above that level for 25 years, a generation, which is a measure of the spectacular success of Reaganomics.
“But Krueger tells us about that June jobs report, "It is important not to read too much into any one monthly report." The Obama Administration, however, has said the exact same thing for each of the last 30 months, as documented July 6 by Bryan Preston for PJMedia."
Ferrara cites a Wall Street Journal op-ed by Ed Lazear, former chairman of the President’s Council of Economic Advisors. If you want to better understand today’s economic situation, Ferrara’s piece is a great starting point. He also discusses “the rich” and whether they are paying their “fair share.” Kudos, Peter.
Note the link in Peter's third paragraph to the July 6 effort of Bryan Preston in PJ Media. Sheesh, White House staff can't even be creative.