Wednesday, June 15, 2011

1.9 Million Jobs Not Created

So, we are nearly a year into the recovery.  Are you feeling the recovery? I know I am not.  I think there are a lot of people out there not feeling the recovery. A lot = 1.9 million. 1.9 million is the number of jobs lost since Feb 2009. 1.9 million is the number of jobs lost despite the US government spending $800 billion in supposedly “shovel ready” jobs. So far the Obama administration and the recently departed democrat control Congress have spent over $400,000 of our tax money to create one job.

The economy cannot create jobs fast enough to keep pace with layoffs and recent high school and college graduates seeking employment.  If the trend continues, as (Larry) Summers notes may happen, the economy will suffer further in the future as college graduates delay entry into the labor force, reducing their lifetime productivity.

“Beyond the lack of jobs and incomes, an economy producing below its potential for a prolonged interval sacrifices it future,” argues Summers. “Huge numbers of new college graduates are moving back in with their parents this month because they have no job or means of support.”

As both Summer and the BLS data make clear, the economy is not creating new jobs fast enough to make up for layoffs and new graduates, calling into question Obama’s oft-repeated claim that the economy is recovering and creating jobs. (Source: CNS News)

As long as Obama is President, the business community is not going to unleash the $1.8 trillion dollars that is held in reserve or making money in the markets. Too many business people are fearful of higher taxes on business profits and the new health care bill. Until this uncertainty is removed, our “recovery” will be stagnant. Will that be when Obama removes his head from his backside, or when the voters remove him from office in 2012?  Let us hope he is a one-term President.

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