Barack Obama and United States Unemployment

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Sign posted at a Colorado Springs, CO homeless camp. [1]

Barack Obama has had a negative impact on small business in America and their ability to hire. The United States has many economic problems that have been made worse by the Obama administration policies (Please see: Obama administration fiscal policy, Obama administration monetary policy and Obama administration corporate bailouts).

On March 2, 2015 Forbes magazine reported:

In January, in his annual State of the Union address, President Obama bragged that “our economy is growing and creating jobs at the fastest pace since 1999.” It’s great news, to be sure. But according to a new paper from the National Bureau of Economic Research, the recent improvement in the labor market may be due to a policy change that Obama adamantly opposed: ending extended unemployment benefits...

What can we learn from all this? Nothing we shouldn’t have already known. If you pay people to stay unemployed, more people will stay unemployed.[1]

Obama Administration's misleading statistics

The Gallup organization and various economic analysts indicate that the unemployment numbers the Obama Administration are reporting are extremely misleading as they don't count discouraged workers who have given up looking for a job nor count people who want full-time work but only have obtained part-time work.[2]

One of the common complaints of ObamaCare is that it many companies have cut employees full-time hours down to part-time work because it mandates employers to offer health insurance to their full-time (but not their part-time) workers.[3][4][5]

High youth unemployment and high Youth Misery Index in the United States

Breitbart news reported in 2015:

Young America’s Foundation has released its Youth Misery Index (YMI) numbers for 2014, and it’s a record high of 106.5. The Youth Misery Index (YMI) is calculated by adding youth unemployment, student loan debt, and national debt (per capita) numbers.

Young people are experiencing hardships like never before under the Obama administration, and this generation is especially suffering the consequences of this administration’s leftist policies.

Youth unemployment in 2014 was 18.1 percent (18.1 on YMI), with almost six million young people between the ages of 16 and 24 not in school or work. Many young people are simply giving up on finding employment.[6]

Obama's economic policies are harmful to entrepreneurship

In 2014, the House Committee on Small Business reported:

“Our economy is facing a crisis that most Americans are not aware of – a decline in entrepreneurship,” said Chairman Hanna. “For the first time in over 30 years, more businesses are dying off than being created. Today’s hearing provided further evidence that Washington must do more to provide a better regulatory and tax environment for enterprise growth. We must not allow a declining rate of business formation and sluggish growth to be considered the new normal, and we should pursue policies which unleash the economic power of entrepreneurship and the American spirit.[7]

American entrepreneurs often have disliked Obama's economic policies

A Kauffman Foundation study found that American entrepreneurs will limit hiring in 2010.[8] According to the U.S. Small Business Administration, "Over a recent 15-year period, small businesses created some 65 percent of the net new jobs in the private sector."[9]

On February 12, 2010, an American small business owner published a piece in the American Thinker critical of President Obama entitled, "Dear Mr. President: Why We Are Not Hiring" that was reflective of anti-Obama administration policy sentiment among many United States small business owners. [10] American businessman William H. Watson also wrote an excellent piece critical of President Obama policies entitled, "Why Is Small Business Not Hiring?"[11]

Given that small business owners are among the most respected individuals in the United States with a 94% approval rating among the U.S. public, small business owners speaking out against President Obama's policies likely contributes to his plunging approval ratings among the United States public.[12] On March 6, 2010, a coalition of business people allied with the U.S. Chamber of Commerce, announced they were going spend between 4-10 million dollars in ads criticizing ObamaCare. The ads will be focused on how ObamaCare will hurt companies by adding additional taxes and requirements, and how it will not control medical costs.[13]

Unemployment skyrockets in 2008 and 2009 (George W. Bush and Barack Obama administrations). Note that, in order to show the correlation between housing starts and the unemployment rate, the unemployment rate (red line) is shown inverted in the graph. High unemployment is at the bottom.

Obama Administration, government spending as a percentage of GDP and its economic consequences

According to a website which tracks government spending:

Government spending at the start of the 20th century was less than 7 percent of GDP. It vaulted to almost 30 percent of GDP by the end of World War I, and then settled down to 10 percent of GDP in the 1920s. In the 1930s spending doubled to 20 percent of GDP. Defense spending in World War II drove overall government spending over 50 percent of GDP before declining to 22 percent of GDP in the late 1940s. The 1950s began a steady spending increase to about 36 percent of GDP by 1982. In the 1990s and 2000s government spending stayed about constant at 33-35 percent of GDP, but in the aftermath of the Crash of 2008 spending has jogged up to 40 percent of GDP.[14]

In terms of the economic productivity, government workers are often less productive than private sector workers.[15]

Time magazine magazine reported concerning productivity of workers and its economic consequences:

But is it really true that productivity growth leads to jobs losses? The McKinsey Global Institute says the answer is no. In a recent report entitled “Growth and Renewal in the United States: Retooling America’s Economic Engine,” MGI argues not only that gains in productivity have usually gone hand-in-hand with job growth, but also that greater productivity gains are absolutely crucial to maintaining American growth, and therefore, job creation and prosperity.[16]

Obama Administration's bailouts and fraudulent stimulus package

In a April 20, 2009 interview with Russia Today, the respected trend researcher, Gerald Celente, declared concerning Barack Obama's economic policy:

America is going from what used to be the major capitalistic country in the world of free market – a crusader – into what Mussolini would have called fascism: the merger of state and corporate powers. So it is not socialism as people believe, it is socialism’s egalitarianism. It’s not communism where the state controls monopolies – it’s fascism, plain and simple. The merger of corporate and government powers. State-controlled capitalism is called fascism, and fascism has come to America in broad daylight. But they’re feeding them it in little bits and pieces. First AIG was too big to fail. Mortgage companies Fannie Mae and Freddie Mac were too big to fail. Banks too big to fail and auto companies. And now we give money to the people that make the auto parts. And now there’s talk about the technology companies, wanting their piece of the action. The merger of state and government is called fascism. Take it from Mussolini; he knew a thing or two about it.[17]

A 2005 study found that government corporate bailouts are often done for mere political considerations and the economic resources allocated exhibit significantly worse economic performance than resources that are invested using purely business considerations.[18] In the 2008 presidential election, among Obama's top campaign contributors were large American banks and financial firms whom he subsequently bailed out.[19] Proponents of free market capitalism assert that Obama and Ben Bernanke should not have bailed out failing firms and instead should have allowed free market capitalism to quickly recover as it did in the depression of 1920 without government intervention (free market capitalists assert that government intervention drags out economic recessions and depressions).[20][21]

President Obama's stimulus program cost more than the Iraq war and the money was ill-spent government pork and largely payoffs to his political constituencies.[22][23] Obama's alleged "shovel ready projects" for infrastructure projects were largely a fraudulent fiction that never occurred.[24][25]

Additional Unemployment Rate Statistics

A quick graph of the United States unemployment rate over the last 10 years (George W. Bush and Barack Obama) may be found here. Detailed tables for the last few months may be found here. Graphs showing the rates for various categories, since 1950 (covering many administrations) may be found here. The categories are labeled "U1" through "U6". For example, U3 is the plain unemployment rate. U1 is those unemployed 15 weeks or more, U4 includes "discouraged workers", U6 includes "marginally attached workers" and people employed "part time for economic reasons". Graphs of these since 1950 may be found here. As may be seen from the graphs, all categories fluctuate similarly, though the actual rates are different.

Declining workforce participation

By March 2015, Civilian workforce participation had further dropped to 62.7%

Workforce participation constitutes the total number of eligible working age adults. Some workers (women who drop out of the workforce for child rearing purposes, or seniors who work to remain active rather than because they need the money, for example) in the adult population are discounted, or deemed 'ineligible' to work to arrive at the base number from which the Unemployment rate is calculated. Prior to the 110th Congress, more than 66% of working age adults were considered to makeup the workforce. Nearly two full percentage points, or 3,000,000 workers have been shaved off the statisitics by government number crunchers, to arrive at the base number used to calculated a 9.6% Unemployment rate. If those three million workers were added back in, the 15,000,000 unemployed figure would swell to 18,000,000 (each one percentage point of the Unemployed represents roughly 1.5 million people).

See Also

References

  1. Unemployment Is Dropping, Thanks To A Republican Policy That Obama Opposed, Forbes, March 2, 2015
  2. CEO of Carl's Jr. says 'Obamacare has caused millions of full-time jobs to become part-time' By Louis Jacobson, Political Fact, on Friday, January 23rd, 2015 at 10:00 a.m.
  3. Obamacare Mandate: Anyone Who Works 30-Hour Week Is Now 'Full-Time'
  4. Yes, Some Companies Are Cutting Hours In Response To ‘Obamacare’
  5. [http://www.breitbart.com/big-government/2015/01/06/youth-misery-index-grows-more-than-50-under-obama-administration/ Youth Misery Index Grows More than 50% Under Obama Administration
  6. America’s Entrepreneurial Decline At An All-Time LowHanna: “For the first time in over 30 years, more businesses are dying off than being created”
  7. Entrepreneurs Will Limit Hiring In 2010, Written by Resources for Entrepreneurs Staff.
  8. Where Do Jobs Come From? New Analysis of Job Gains and Losses from the Office of Advocacy, Office of Advocacy, March 03, 2010.
  9. C. Edmund Wright. Dear Mr. President: Why We Are Not Hiring, American Thinker, February 12, 2010.
  10. Bill Watson. Why is Small Business Not Hiring? goarticles.com, (submitted 2010-01-24).
  11. Americans Now View Congress As Least Respected Job, Rasmussen Reports, September 21, 2009.
  12. http://www.businessweek.com/news/2010-03-10/obama-s-health-care-push-gets-challenge-from-business-coalition.html
  13. US Government spending
  14. [http://reason.org/news/show/public-sector-private-sector-salary
  15. Does productivity kill jobs?
  16. Interview with Gerald Celente
  17. Faccio, Mara, Masulis, Ronald W. and McConnell, John J., Political Connections and Corporate Bailouts (March 1, 2005). AFA 2006 Boston Meetings Paper; 61:6, 2597-2635, 2006.. Available at SSRN: http://ssrn.com/abstract=676905
  18. Top Contributors
  19. JIM ROGERS The Federal Reserve is WORSENING the depression, YouTube, February 17, 2010.
  20. Why You've Never Heard of the Great Depression of 1920, YouTube, April 10, 2009.
  21. Mark Tapscott. Little-known fact: Obama's failed stimulus program cost more than the Iraq war, Washington Examiner, August 23, 2010.
  22. [https://cei.org/blog/stimulus-was-designed-provide-pork-and-payoffs-not-revive-economy
  23. [http://www.christianpost.com/news/stimulus-money-for-shovel-ready-projects-where-did-it-go-92666/
  24. [http://www.forbes.com/sites/timworstall/2013/11/01/the-reason-that-shovel-ready-stimulus-didnt-work-is-that-there-wasnt-any-stimulus/