What Jobs? Obama’s Economic Failure
Since some of our economic policy illiteratti here SAY they want “facts” (but tend to tip-toe away when facts are presented), here are some facts comparing the Bush tax rate cuts and the Obama “stimulus” spending policies, and the respective effectiveness of each in creating private sector (wealth creating) jobs over a similar period of time.
According the Federal Reserve Bank of Atlanta and the Bureau of Labor Statistics, during the 18 months from June 2003, when the Bush tax rate cuts went into effect, through December 2004, the US economy created an average of 126,000 private sector jobs per month. Also, by December of 2004, at the end of that 18 month period, the US was adding over 185,000 jobs per month. During that same 18 month period, the US unemployment rate fell from 6.4% to 5.45%, a decrease of 15%
By comparison, during the first 18 months since the passage of Obama’s ARRA “stimulus” package, the nation’s unemployment rate has gone from 7.6% in January 2009 to a high of 10.1% in October 2009 and has remained above 9.5% ever since. (and would have topped the 10% level the past three months had it not been for the temporary census workers hired by the government.)
BLS reports the highest monthly total of jobs created (both government and private sector combined!) since the Obama “stimulus” was 123,000 in March of 2010. BLS and CBO have also reported that the US economy needs an average of 150,000 jobs created monthly just to keep up with an expanding working age population and to maintain the current unemployment rate.
Clearly, the Obama economic policy simply isn’t providing the economic growth or the expanded employment opportunities that the administration had forecast. While the Bush tax rate cuts dropped the nation’s unemployment rate by 15% during the first year and a half after its enactment, Obama’s “stimulus” spending has resulted in unemployment that is 30% higher than when the “stimulus” was enacted, and is 20% higher than the maximum forecast by the Chair of the White Council of Economic Advisors prior to ARRA enactment.