Obama recovery has lost more jobs than it created

Discussion in 'Politics' started by bugscoe, Sep 21, 2010.

  1. Why haven't any of our resident libs posted this NYT story? I mean come on, it's the New York Times!!

    NYT: Just a reminder that the Obama recovery has lost more jobs than it created

    The New York Times throws a healthy dash of cold water on an attempt by Democrats and their allies to claim that Barack Obama has created more jobs in the US than George Bush, or even George Washington. Far from adding net jobs, Catherine Rampell correctly states that the US economy has lost jobs since the start of the recovery, now pegged at June 2009 by the NBER:
    It’s actually worse than what this picture paints. Population growth in the US means that we add around 100,000 working-age adults, after deducting those retiring or otherwise leaving the workforce for reasons other than discouragement. The average loss of 22,000 jobs a month means that we went backwards 122,000 jobs per month in terms of workforce employment.

    The flatline on job creation has dire implications for the White House if it continues much longer, and all indications are that it will:
    The Reuters forecast for 2011 is for GDP growth of just 2.4%. Their usual optimism puts the US in a position where jobs continue to slightly erode for most of the next year in static terms, let along against population growth. This year’s forecast is for 2.7% growth, but that’s after a first quarter of 3.7% annualized rate of growth, which means Q3 and Q4 will fall considerably below the 2.7% mark.

    If Reuters turns out to be too optimistic and the US “unexpectedly” tips back into a recession, Rampell points out that Obama won’t be able to claim that he inherited it. That may not matter much anyway, because the extended high rate of unemployment means that voters won’t have much buy-in to the current recovery and are likely to see it as a confirmation of the failure of Obamanomics. Even without a second recession, having an unemployment rate in the 9s or even 8s will make the 2012 election cycle into a repeat of 2010 for Democrats. And if they try to keep committing sophistry by trying to claim massive job creation while unemployment rises, it may be even worse than what Election Night in six weeks looks to be.