A Grim Jobs Report For America...

Discussion in 'Politics' started by paulitician, Jun 3, 2012.

  1. paulitician
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    paulitician Platinum Member Supporting Member

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    By Larry Kudlow
    Host, "The Kudlow Report"


    You would think $1 trillion in stimulus spending and $2.5 trillion of Fed pump-priming would produce an economic growth rate a lot higher than 1.9 percent of GDP, which was the revised first-quarter number. And you’d think all that government spending would deliver a whole lot more jobs than 69,000 in May.

    But it hasn’t happened.

    The Keynesian government-spending model has proven a complete failure. It’s the Obama model. And it has produced such an anemic recovery that frankly, at 2 percent growth, we’re back on the front end of a potential recession. If anything goes wrong — like another blow-up in Europe — there’s no safety margin to stop a new recession.

    And that brings us to the grim May employment report; the economy added only 69,000 nonfarm jobs last month. It’s the third consecutive subpar tally, replete with downward revisions for the two prior months. It’s a devastating number for the American economy, and a catastrophic number for Obama’s re-election hopes. All momentum on jobs and the economy has evaporated.

    Inside the May report, the data is just as bad. The unemployment rate rose slightly from 8.1 to 8.2 percent. The so-called U6 unemployment rate, tracking the marginally employed or completely discouraged, increased to 14.8 percent from 14.5 percent. And labor earnings are barely rising at 1.7 percent over the past year, almost in line with the inflation rate. In fact, through April, after-tax, after-inflation income is scarcely rising at 0.6 percent for the past year.

    The private workweek also fell in May. So did the manufacturing workweek and aggregate hours worked for all employees. The small-business household survey did rise, but that follows declines in the prior two months.

    Barack Obama doesn’t get this, but businesses create jobs. And firms have to be profitable in order to hire. Yet the president is on the campaign trail criticizing Mitt Romney by degrading the importance of profits. Huh?

    Without profits, businesses can’t expand. And if they don’t expand, they can’t hire. And if they don’t have profitable rates of return, they’re not going to attract new capital for investment.

    Which brings us to a couple of important reasons for the virtual freeze in hiring...

    Read more: Jobs Report | A grim jobs report for America | The Daily Caller
     
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  2. Joe Steel
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    Joe Steel Class Warrior

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    Blame it on the Republicans.

    Thirty years of policy rigging to serve the rich has taken its toll. The American People have been beaten by the stooges they've sent to Washington. Reagan, Bush1 and Bush2, even Republican lite Bill Clinton. Gingrich, Boehner and a host of others. They're loyalty belongs to the rich and the American People are suffering for it.
     
    Last edited: Jun 3, 2012
  3. paulitician
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    paulitician Platinum Member Supporting Member

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    Lots of blame to go around. And Obama deserves much of it. He has completely sunk many future generations.
     
  4. thereisnospoon
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    thereisnospoon Gold Member

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    Nice spin....Doesn't wash, Comrade.
    Your guy has been in the WH for 3.5 years. It's time for you lefties to do the unthinkable....That is to take responsibility for your actions.
    This is YOUR doing. It is YOUR fault. You people put this guy in the WH. YOU people populated the US Senate with a democrat majority and the majority of BOTH Houses of Congress for 4 years...\
    For once in your miserable lives, man up and own your errors.
     
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  5. The Rabbi
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    The Rabbi Diamond Member

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    I dont recall anyone saying this in 2006 when the UE rate was under 5% and inflation was about 2%. This kind of rhetorical crap only comes up now that the Democrat Obama has had 3 years with control of Congress and managed to produce this shitty result. So now it's "30 years of these policies." The truth is that for the vast majority of the last 30 years we've done well. This past 3 years is the exception. Call it America's Black Mark.
     
  6. LordBrownTrout
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    LordBrownTrout Gold Member

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    "Republican lite" Clinton. He did a decent job dude.
     
  7. ladyliberal
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    ladyliberal Progressive Princess

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    I take exception to four things Kudlow says here:

    1) Kudlow calls current policy a failure without defining what a success would be. He focuses on GDP. Would Kudlow call it a success if GDP rose but median income fell sharply? Would that really be better for society?

    2) Keynesian economics isn't just about spending. Tax cuts are part of Keynesian fiscal policy, so the corporate tax cuts he advocates would be Keynesian stimulus.

    3) Our current economic policy simply is not the "Obama model". To suggest that Obama has had free rein to direct economic policy is contrary to reality. Congressional opposition has sharply limited his ability to secure even routine matters such as a debt ceiling increase.

    4) Most importantly, Kudlow takes the disappointing jobs numbers as "proof" (a very high standard) that stimulus failed. But of course this month's job numbers are a single data point years after the stimulus increased government spending. Spending as a function of GDP has fallen sharply in the intervening time (US Government Spending As Percent Of GDP United States 2000-2012 - Federal State Local Data) so far from contradicting basic Keynesian predictions, anemic job numbers are expected.
     
  8. The Rabbi
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    The Rabbi Diamond Member

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    If 2% GDP growth, 8.2% unemployment, record low labor force participation, 0% interest rates, and record deficits are success I'd hate to see your definition of failure.
     
  9. ladyliberal
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    ladyliberal Progressive Princess

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    I didn't say current economic policy was a success. My point was that Kudlow should define success and failure before labeling something as one or the other. For my part, I don't regard GDP growth as the single relevant economic indicator.

    And while I agree the economic numbers are bad, I do not regard that as prima facie evidence that economic policy has failed. One country can be much poorer than another and yet manage its economy better. It is entirely possible (to my mind, quite likely) that economic policy under a President McCain, say, would have left the US much worse off than we are today.
     
  10. paulitician
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    paulitician Platinum Member Supporting Member

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    I have a feeling most Americans are longing for the days of BOOOSH's 'awful' 4% Unemployment and Record High Stock Markets. I actually remember Democrat Wingnuts like John Kerry calling that a 'Depression.' Yikes!
     
    Last edited: Jun 3, 2012

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