Barack Obama continues to tell us that the terrible recession that he inherited has prevented him from doing much about the economy. This is nonsense. A vibrant capitalist economy can recover from a big hit with sensible policies. Now here are two interesting facts to consider, according to Bureau of Labor Statistics data.
*During Ronald Reagan’s two presidential terms from 1981 to 1989, starting with a severe recession, 16 million jobs were created.
*During Barack Obama’s two terms so far, starting with a severe recession, 10 million jobs have been created (we will say 11 million by the end of Obama’s term).
The difference is two things – the quality of the jobs and the size of the population. The American population at the end of the 2nd Reagan term was 250 million. It is 325 million today, or 30% larger. So to directly compare the number of jobs created, you need to adjust the numbers by 30%. And with that adjustment the numbers are 21 million jobs for Reagan and 11 million for Obama. And most Americans forget that the economy that Reagan inherited was almost as bad as the one Obama got. And then remember this:
*Reagan instituted pro-growth policies that are rabidly impugned by liberals, like tax cuts for wealthy Americans.
*Obama has embraced socialist policies.
*Reagan expanded the military significantly, while the military has shrunk to historic lows under Obama.
*The jobs created under Reagan were much better quality, and better paying, than those being created under Obama.
If you want to know the underlying problem with the American economy today just look at this from CNSNews.com about the US economy in 2016. It is shocking. Keep in mind that manufacturing jobs are the most important jobs to “create” wealth while government jobs “consume” wealth:
Government employees in the United States outnumber manufacturing employees by 9,932,000, according to data released by the Bureau of Labor Statistics. Federal, state and local government employed 22,213,000 people in August, while the manufacturing sector employed 12,281,000.
The BLS has published seasonally-adjusted month-by-month employment data for both government and manufacturing going back to 1939. For half a century—from January 1939 through July 1989—manufacturing employment always exceeded government employment in the United States, according to these numbers.
Then, in August 1989, the seasonally-adjusted employment numbers for government exceeded the employment numbers for manufacturing for the first time. That month, manufacturing employed 17,964,000 and government employed 17,989,000.
Manufacturing employment in the United States had peaked a decade before that in June 1979 at 19,553,000
From August 2015 to August 2016 seasonally-adjusted manufacturing employment declined by 37,000–dropping from 12,318,000 last August to 12,281,000 this August.
…The 22,213,000 government employees in August, according to the BLS, included 2,790,000 federal employees, 5,120,000 state government employees, and 14,303,000 local government employees.
Wow. Stunning. This alone explains why America used to be much more prosperous, and why the whole global economy today is in such straits. This is why there is so much stasis in places like Europe and Japan, which are very socialistic with poor job growth and big government bureaucracies. And now the US.
Then remember that “green” jobs are simply government jobs, since they are totally dependent on taxpayer subsidies.
To add significantly to the problem Obama has increased our national debt load to 100% of GDP, a ratio based on the total national debt versus our annual economic production. This debt load alone costs American taxpayers $400 billion every year just to pay interest on the debt, but not to pay off any debt.
At the end of Ronald Reagan’s presidency, the debt ratio was just 51%, while 60% is considered the maximum allowable for economic growth. Obama inherited 60% from George W. Bush.
Now consider these facts from Market Watch about the August 2016 job numbers, with just 151,000 jobs added:
… bars and restaurants added 34,000 new employees to lead the way in hiring. The number of social workers also rose by 22,000, an unusually large increase. Both industries pay below-average wages. Many industries that offer higher pay such as manufacturers and construction firms reduced employment slightly.
So there you go. Bars and restaurants are not significant job creators. These are “service jobs” and can be anything from waitress to dishwasher. Social workers are often government jobs and are the sign of a troubled economy, i.e., people are not self-sufficient but need help. Then the most crucial wealth-creating jobs in manufacturing and construction actually fell in August. This is the worst news of all and is part of a long-term trend.
And the unemployment rate is not 4.9% as it is being reported. This is a fake government number. The real number is 12% to 25% depending on how and where you measure it. Now look at the rest of the picture:
The economy added 151,000 jobs in August. This is a mediocre number, fewer than economists had expected. But then when you consider the quality of the jobs, it is a terrible number. And then remember that most of the good jobs are being created in the conservative states like Texas, North Carolina and Florida. The economy also is being kept afloat by low gasoline and natural gas prices, a result of “fracking” that Obama and his ‘green’ cronies oppose.
Meanwhile, in order to cover up for Obama, CNBC.com, part of Obama-loving NBC, reported:
August traditionally has been a difficult month for jobs numbers, and 2016 proved no exception…
So there you go. They give the excuse for mediocre job numbers right in the first line of the report. Meanwhile CNBC.com let the cat out of the bag, reporting:
A more encompassing rate that included discouraged workers and those holding part-time jobs for economic reasons held steady at 9.7 percent.
Yes, and if they actually wanted to go further they could go all the way up to 25% and higher in many places. But they won’t in order to cover for Obama. If Trump were president they sure would. Here is CNBC covering for Obama again:
August has been a notoriously volatile month for the jobs numbers. The previous five reports have been revised upwards by an average of 71,000. In 2011, the initial report was zero, which later was revised up to 107,000. Goldman Sachs economists attribute the statistical noise to the start of the school year.
Oh, sure. Now they blame it on the kids going back to school, i.e., it is not Obama’s fault. It is the fault of our children. This is cold, heartless socialism, to blame anyone but the socialist, even our children.
These media people and economists always find some bizarre excuse for Obama. CNBC also fails to mention all of the months that figures are revised downward. CNBC.com then reports casually:
Those counted as not in the labor force increased by 58,000 to 94.4 million.
This is an astronomical number of people out of the labor force. That is why there is no further comment on it. This is what keeps the unemployment rate at a fake 4.9% – tens of millions of people who are not counted in the labor force, and thus as unemployed. Here is more bad news from CNBC.com:
In addition to the below-expectation (job creation) number, wage growth actually took a step back, with hourly earnings up just 3 cents and an annualized pace of 2.4 percent. The average work week declined 0.1 percent to 34.3 hours.
Again, this is Obama socialism. And it all can be traced back to those terrible numbers above, with 10 million more people employed in government than in manufacturing, and a 100% debt load. Period. End of story.
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