Barack Obama and United States Unemployment
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). The United States unemployment rate was 9.7% in February of 2010. In addition, on March 5, 2010, MarketWatch reported concerning U.S. unemployment, "The U6 alternative gauge of the unemployment rate, which includes discouraged workers and those forced to work part-time, rose to 16.8% from 16.5%." President Obama's stimulus program cost more than the Iraq war.
A Kauffman Foundation study found that American entrepreneurs will limit hiring in 2010. 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." 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.  American businessman William H Watson also wrote an excellent piece critical of President Obama policies entitled, Why is Small Business Not Hiring? 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. 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 plus it will not control medical costs.
Obama Jobs Deficit
President Obama pledged to create 3.5 million new jobs by 2010, which would place total U.S. employment at 138.6 million. Using that figure as a target, Obama's jobs deficit currently stands at 9.05 million.
New Home Construction hit a record new low under President Obama's economic program, the lowest level since records have been kept starting in 1969. Housing Construction employment has been the driving force of job creation in leading the way to economic recovery in seven of the past eight economic recoveries. 2,100,000 housing construction jobs have been lost since the 110th United States Congress took office.
Declining workforce participation
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 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 statisitcs by government number crunchers, to arrive at the base number used to calculated a 9.6% Unemployment rate. If those three million workers were addded 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).
Gerald Celente commentary on Obama's economic policy
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.||”|
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. In the 2008 presidential election, among Obama's top campaign contributors were large American banks and financial firms whom he subsequently bailed out. 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).
Return of Stagflation Concerns
In February of 2010 the Washington Times reported on the return of stagflation concerns:
|“|| Prices rose 2.7 percent during 2009, according to the Bureau of Labor Statistics' recent update of the Consumer Price Index (CPI). This is a worrisome fact because last year's unemployment rate averaged more than 9 percent. This trend may signal a return of "stagflation," a merger of stagnation and inflation.
In the 1970s, stagflation shocked traditional Keynesian economists, whose models said the economy could not suffer from both high unemployment and rapid inflation at the same time. Unfortunately, the Keynesians were wrong, because an economy obviously can experience both evils simultaneously...
It seems every week the Obama administration announces some new tax or mandate that will further handicap businesses. Regardless of the official definitions of recession, the economy will remain sluggish for years to come. But if the Federal Reserve continues with its reckless policies, Americans will experience high inflation on top of high unemployment. As in the late 1970s, Americans will see that the pundits are wrong, because stagflation is very real.
- ↑ Carrie Bay. Unemployment Rate Unchanged at 9.7%, March 05, 2010.
- ↑ Rex Nutting. Payrolls fall by 36,000; U.S. jobless rate steady at 9.7%, MarketWatch, March 5, 2010.
- ↑ Mark Tapscott. Little-known fact: Obama's failed stimulus program cost more than the Iraq war, Washington Examiner, August 23, 2010.
- ↑ Entrepreneurs Will Limit Hiring In 2010, Written by Resources for Entrepreneurs Staff.
- ↑ Where Do Jobs Come From? New Analysis of Job Gains and Losses from the Office of Advocacy, Office of Advocacy, March 03, 2010.
- ↑ C. Edmund Wright. Dear Mr. President: Why We Are Not Hiring, American Thinker, February 12, 2010.
- ↑ Bill Watson. Why is Small Business Not Hiring? goarticles.com, (submitted 2010-01-24).
- ↑ Americans Now View Congress As Least Respected Job, Rasmussen Reports, September 21, 2009.
- ↑ http://www.businessweek.com/news/2010-03-10/obama-s-health-care-push-gets-challenge-from-business-coalition.html
- ↑ J.D. Foster, Ph.D., Obama Jobs Deficit Up Again; Course Correction Required, heritage.org, February 5, 2010.
Heritage Foundation calculations and U.S. Department of Labor, Bureau of Labor Statistics, “The Employment Situation—
January 2010,” Table A-1, at http://www.bls.gov/news.release/pdf/empsit.pdf (February 5, 2010). "The President's jobs promise means total employment, which in January stood at 129.5 million, should be at least 138.6 million by the end of 2010, leaving the Obama jobs deficit at just over 9 million jobs." Obama Jobs Deficit: 9 Million Jobs (PDF)
- See U.S. Office of Management and Budget, "Reviving Job Creation and Laying a New Foundation for Economic Growth," at http://www.whitehouse.gov/omb/budget/fy2011/assets/foundation.pdf (February 5, 2010).
- The original Congressional Budget Office (CBO) estimate of the bill was $787 billion, but CBO included a re-estimate in its January 2010 Budget and Economic Outlook report. See http://www.cbo.gov/ftpdocs/108xx/doc10871/frontmatter.shtml (February 5, 2010).
- Press release, "Commissioner's Statement on the Employment Situation," U.S. Department of Labor, Bureau of Labor Statistics, December 4, 2009, at http://www.bls.gov/news.release/empsit.nr0.htm (February 5, 2010).
- See J. D. Foster, "Keynesian Fiscal Stimulus Policies Stimulate Debt--Not the Economy," Heritage Foundation Backgrounder No. 2302, July 27, 2009, at http://www.heritage.org/Research/Economy/bg2302.cfm.
- See Curtis S. Dubay, "Hiring Tax Credit Will Not Create Long-Term Jobs," Heritage Foundation WebMemo No. 2791, February 3, 2010, at http://www.heritage.org/Research/Taxes/wm2791.cfm.
- See Jennifer Haberkorn, "Democrats Pan Payroll Tax Credit," Washington Times, February 4, 2010, at http://www.washingtontimes.com/news/2010/feb/04/democrats-pan-payroll-tax-credit/ (February 5, 2010).
- ↑ Interview with Gerald Celente
- ↑ 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
- ↑ Top Contributors
- ↑ JIM ROGERS The Federal Reserve is WORSENING the depression, YouTube, February 17, 2010.
- ↑ Why You've Never Heard of the Great Depression of 1920, YouTube, April 10, 2009.
- ↑ Robert P. Murphy. MURPHY: Setting the stage for stagflation, The Washington Times, February 19, 2010.