Obamanomics in Action: Double-Digit Unemployment
Ten months ago, just days before a new dawn in America, then President-elect Barack H. Obama told us that
Economists from across the political spectrum agree that if we don’t act swiftly and boldly, we could see a much deeper economic downturn that could lead to double-digit unemployment and the American Dream slipping further and further out of reach.
(Via Instapundit.) With the swift action he proposed, his team promised us we’d see unemployment top out at about 8% in the summer and start to decline in the fall. We wouldn’t see double-digit unemployment. Well, with the numbers announced today, we’re seeing just that.
(Chart via Gateway Pundit.) Maybe we’d be seeing a different graph if Obama had authored a different stimulus, removing federal regulation and cutting the corporate income tax.
So, given that unemployment continues to climb, don’t you think the President would do well to adjust his priorities and follow the advice of a leading Democrat and “Forget healthcare, focus on employment.“
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If Obama is no better than Jimmy Carter expect him in a few months to say he can’t do anything about unemployment, America is a decrepit country and it’s hopeless. All of you fend for yourselves, but we need to tax you more to maintain the safety nets.
Comment by Gene in Pennsylvania — November 6, 2009 @ 8:55 pm - November 6, 2009
Gene, that’s about right…
Comment by Steven E. Kalbach — November 6, 2009 @ 9:13 pm - November 6, 2009
Before the libs try to blame this unemployment on Bush, I will preempt them by pointing out that Democrats have been in control of congress for three years now, and it is that Democrat congress that has written all the budgets and laws and which have had oversight of all our financial institutions.
When Republicans lost control, the economy was growing at a robust rate, and unemployment was low. In fact, it took a full year of Democrat “leadership” before the recession began and a full two years of Democrats being in control before the financial crisis hit.
More than that, Bush and Republicans tried over 25 times to reform Fannie and Freddie, predicting at the time a crisis almost exactly like the one we got if we did not pass such reform. Democrats filibustered their every attempt at reform.
So, please, lets not hear any nonsense about how this economy is the fault of Bush or the Republicans. Responsibility for our devastated economy belongs entirely to Obama, Democrats and their command and control policies.
Comment by American Elephant — November 6, 2009 @ 10:00 pm - November 6, 2009
AE, that won’t stop them…you’ll hear it anyways…
Comment by Steven E. Kalbach — November 6, 2009 @ 10:02 pm - November 6, 2009
True dat!
Comment by American Elephant — November 6, 2009 @ 10:37 pm - November 6, 2009
#3: “More than that, Bush and Republicans tried over 25 times to reform Fannie and Freddie, predicting at the time a crisis almost exactly like the one we got if we did not pass such reform. Democrats filibustered their every attempt at reform.”
Not only did the Democrats block reform every step of the way then, they are trying to EXPAND THE PROGRAM NOW.
http://www.washingtonexaminer.com/opinion/blogs/beltway-confidential/Dems-push-expanded-Community-Reinvestment-Act-dismiss-evidence-that-CRA-contributed-to-financial-meltdown-Republicans-cite-ACORN-connection-59501737.html
Comment by Sean A — November 6, 2009 @ 11:08 pm - November 6, 2009
Ummmmmm……didn’t unemployment after Carter peak in 1983; 2 years after Reagan was in the White House?
Comment by Kevin — November 7, 2009 @ 12:19 am - November 7, 2009
Fair point, Kevin, but, recall Reagan didn’t promise overnight recovery (as did Obama). And the Gipper’s tax cuts didn’t kick in until the beginning of 1983. Unemployment peaked soon after his economic places were in place.
Comment by B. Daniel Blatt — November 7, 2009 @ 12:40 am - November 7, 2009
But would they agree to massive debt and massive taxes during an economic downturn? I don’t think so.
Comment by ThatGayConservative — November 7, 2009 @ 1:03 am - November 7, 2009
The problem is, Kevin, the economy was SHRINKING when Carter and his Democrat congress were done with it, but in 2006, Republicans left Democrats an economy that was GROWING.
It wasn’t until a year AFTER Democrats took control that the recession even began, and two years after Dems took over that the financial crisis hit.
Obama and the Democrats seem intent on repeating all the mistakes Democrats made back then in a zealous attempt to prove their failed ideology wasn’t really failed at all. It was, it is, and unfortunately, there is no Reagan with any power to do anything to stop them.
In other words, this is not 1981, and Obama is not Reagan. This is 1976 and Obama is Carter. And tragically, things are going to get much worse, and it will once again take a Republican like Reagan to defeat Democrats before things can start geting better.
Policy matters.
Comment by American Elephant — November 7, 2009 @ 2:51 am - November 7, 2009
[...] Obamanomics in Action: Double-Digit Unemployment Share and Enjoy: [...]
Pingback by Headlines 11.7.2009 — ExposeTheMedia.com — November 7, 2009 @ 7:14 am - November 7, 2009
What cracks me up is that the Democrats called it a “Recovery Plan”. They’re addicted to spending other people’s money. They’re addicted to deficits and low interest rates that wasting the People’s savings on investment bubbles and redistribute their purchasing power to the corrupt, thus destroying the economy. And they think doing more of it is a “Recovery Plan”. Imagine a crack whore whose “Recovery Plan” conveniently involves him or her getting large new doses of crack.
Comment by ILoveCapitalism — November 7, 2009 @ 9:00 am - November 7, 2009
Kevin,
You might be able to advise me and help put my mind at ease.
The huge Bush TARP bailout was turned into a super-galactic monstrosity when Obama and the Dems piled the titanic stimulus package on top of it. The result is that the treasury sold bonds and many, many of them were bought by the other pocket, the FED. The FED released the magic money that isn’t there into the economy. We have added 120% to the economy with scrip. The dollar is heading south and soon the graph of its decline will look like the unemployment graph.
Gresham’s law is at play: bad money will push good money out of circulation. The answer is to charge higher and higher interest rates in order to buy back the bogus money and destroy it. In other words, we are now facing the task of buying back the equal of more than our normal yearly economy and burning it in order to restore the value of the dollar. We have done this exercise before, but never at this size. We have devalued the dollar by 120%. The previous record was 13%.
Houses are selling by much less. Have you noticed the prices at Lowe’s dropping at the same decline? The point is, if you set out to build a house, you will pay the same price per square foot that you paid before Fannie/Freddie went bust. But if you buy a used house, you will pay considerably less per square foot than before Freddie/Fannie went bust. What, pray tell, do you expect to happen to the building trade when high inflation kicks in? People facing high mortgage interest rates will go for used houses. The housing market is the key indicator in the economy and employment. Auto sales used to count to, but high interest on car loans and the supine Chrysler and GM make that industry in the US a joke.
So, my plea to you for help is this: what is your liberal view of how I should invest my retirement funds?
Comment by heliotrope — November 7, 2009 @ 9:15 am - November 7, 2009
Unfortunately, the Republicans are in no shape for it. Bush was a big part of the problem. In several instances, Obama’s ruinous economic policies are merely intensifications of Bush’s bad economic policies.
Comment by ILoveCapitalism — November 7, 2009 @ 9:17 am - November 7, 2009
If “they” want to save the dollar. (I don’t think they do.) Exactly so. And, take all the bankruptcies that will result from higher interest rates, as a way of clearing the decks of America’s fake service/consumer economy.
And even more important, eliminate regulations and other government meddling in the economy so that the capable people can rebuild a real economy, a producing economy. That’s the untold story of the Great Depression: all the restrictions Roosevelt put in place on the supply side, and how those prevented job creation and dragged out the Depression for 13 years.
Right now, Peter Schiff is the only political candidate I know of who understands all of the above and is saying it.
Comment by ILoveCapitalism — November 7, 2009 @ 9:27 am - November 7, 2009
Yes. Establishment economists – all of the Keynesians, and basically anyone who isn’t an Austrian economist or at least a supply-sider – pretty much think that 0% interest rates, dollar depreciation and $1.4 trillion-deficit “stimulus” is wonderful. And of course, Left economists are always look for excuses to raise taxes and expand government. Ask Paul Krugman.
You have to understand who the Establishment economists work for. Who gives them jobs and pays their salaries. They work for America’s “paper aristocracy”, the non-capitalists / corporate socialists who benefit from printing money and government bailouts: the Goldman Sachs – GM – New York Times – DNC axis. They’ve twisted their brains into pretzels of rationalization to justify $1.4 trillion deficits and the destruction of the dollar. And have spread their twisted thoughts around like manure.
Not to push Peter Schiff again, but he has a book for those interested: http://www.amazon.com/Crash-Proof-2-0-Economic-Collapse/dp/047047453X
Comment by ILoveCapitalism — November 7, 2009 @ 9:41 am - November 7, 2009
Remember when Reagan would say “Stay the Course”?
Does Obama even have a course?
Comment by Geena — November 7, 2009 @ 9:59 am - November 7, 2009
I cannot find a job.
Time and again, I call places, and am told “please no phone calls”. I send out my resume and apply online, I never hear back from anyone.
Six of my friends are in the same situation.
Interestingly, we are all Republicans.
Comment by TrulyScrumptious — November 7, 2009 @ 11:06 am - November 7, 2009
Where’s the aid to small business?
Where’s the massive capital-program to build wind-turbines?
Where’s the support to re-tool the US auto industry to new-technologies?
Where’s the infastructure investment in highways and rail?
Oh, that’s tight…Obama & Co. spent the money on propping up a corrupt Wall Street and it’s perverted-version of casino capitalism; in giving the US auto unions the capital means of production without any strings on financial performance or technological retooling; and giving “stimulus money” to the states and cities so they could maintain their bloated public-sector union payrolls.
Yet small business where the bulk of the national employment lies, and the traditional economic-engine of job re-invention and creation, has been left to hang in-the-wind without aid or access to credit.
“Change You Can Believe In”, ehh….?
Comment by ted B. — November 7, 2009 @ 11:32 am - November 7, 2009
It’s appalling that this President amidst mass shootings and historic unemployment and underemployment floats along like everything is fine.
He and Michelle have banquets almost every nite, he’s playing hoops, rounds of golf every week. It’s disgusting. He struts into these meetings with House leaders like he’s God’s gift. What a horrible man.
I just heard Mr and Mrs George W Bush went to Ft Hood yesterday to spend exrtraordinary time with the families of the victims of the terror attack there. All we have heard from our current President was a repremand to not jump to conclusions and a shout out to a vet. Disgusting.
Comment by Gene in Pennsylvania — November 7, 2009 @ 12:43 pm - November 7, 2009
Well this could be the peak of Unemployment, considering the economy has started growing again. It seems that most indications are that we are pulling out and at least the worse is behind us. You can play the what if game and say well unemployment could be 15 or 18% without the stimulus plan, you can debate it both ways.
I probably shouldn’t wade into this, I get easily lost in all of the economic talk.
Comment by Darkeyedresolve — November 7, 2009 @ 1:06 pm - November 7, 2009
DER: $1trillion deficits, stretching as far as the eye can see. And “paid” for by money printing / 0% interest rates. And that’s with the tax increases that are coming in 2010, and before the massive additional spending, deficit and tax increases of PelosiCare. That’s all the economics you need to know.
That’s debatable. Most of the increase measured in the 3rd quarter was government spending, and Cash for Clunkers which effectively stole car sales away from future quarters. In other words: Smoke and mirrors. Meanwhie, personal incomes were down in September I believe.
Comment by ILoveCapitalism — November 7, 2009 @ 1:54 pm - November 7, 2009
Well we’re supposedly getting some money here in FL for high-speed rail. The problem is that we know, from the voters, that nobody wants it. As far as roads go, the porkulus tracking website indicates that a road near here, which nobody uses, will be extended 50 yards.
Comment by ThatGayConservative — November 7, 2009 @ 2:09 pm - November 7, 2009
Actually the economy probably ISN’T growing. If you subtract the
cash for clunkers program and the subsidy to new home buyers the economy was artifically forced to grow in the 3rd quarter. This isn’t sustainable natural growth because of people being hired and spending money. Look for a GDP dip in the 4th or 1st quarter. With future tax increases for businesses being threatened by the liberals, why would any business start hiring? If the economy retracts again look for more depression talk. Then the Dems will be running for the hills.
Comment by Gene in Pennsylvania — November 7, 2009 @ 4:42 pm - November 7, 2009
I hope you find something soon, Truly!
Comment by American Elephant — November 7, 2009 @ 4:54 pm - November 7, 2009
I’m really hoping for a “true Revolution” in this country and not just another swing back to the other side of the aisle who then gets their turn to screw us. We need real reform, real change, and accountability injected back into our government. Otherwise–we will continue on the same course.
Comment by Christopher — November 7, 2009 @ 5:40 pm - November 7, 2009
Christopher, I just talked to my brother in Michigan who said the same thing about us needing a “revolution”. My phrase is a velvet revolution at the ballot box and at protests and tea bag gathering.
Comment by Gene in Pennsylvania — November 7, 2009 @ 7:15 pm - November 7, 2009
We’ll be there in a few more years. Obama and the Democrats are on course toward bankrupting the government, making it inoperative. (Or else toward the other alternative, Weimar-style hyperinflation.) It will take a few more years, but only a few. Not more than 5-10, I should think.
Comment by ILoveCapitalism — November 7, 2009 @ 7:31 pm - November 7, 2009