Tag Archives: job creation

Job Creation: The True Narrative

There’s been a lot of hype about job creation in the news lately.

The Obama administration is basking in the glow of Friday’s report from the U.S. Labor Bureau that unemployment has made the monumental leap from 8.3% down to 8.1% (still a lot higher than the 6% we were told the stimulus would bring).

And the prevailing rhetoric at the recently concluded DNC, other than the insistence that free, Constitutionally-guaranteed contraception is the only issue women care about (and as a strong, independent woman, what else am I to do but run to the federal government when the big, bad Republicans deny it to me?) was the insistence that under a Romney-Ryan administration, all the jobs would be shipped overseas and the middle class would be left to rot in the streets, and under Paul Ryan’s plan, without even Medicare or Social Security to sustain them.

Because as Bill Clinton assured us, Democrats have created twice as many jobs as Republicans since 1961. (And we all know, Bill Clinton would never lie, especially not under oath.)

Unfortunately for the folks at the DNC, Political Math put together the following chart, using statistics from the Bureau of Labor:

Obviously, Bill Clinton paints a wildly different story than the facts do. Yes, Democrats have created slightly more jobs since 1961, but much of that has to do with the state of the economy when they took office.

But, since Obama likes to whine about how much worse the economy was than he could possibly imagine, let’s take a look at his job creation compared to the man he likes to both demonize and emulate- Ronald Reagan. Despite the absolute trainwreck of an economy Reagan inherited from Jimmy Carter, he managed to create 16.7 million jobs in his two terms. In comparison, Obama created 0.1 million as of May 2012. In the first 23 months of the Reagan recovery, an average of 285,800 jobs per month were added to the economy. During the same time period under Obama, an average of 23,000 jobs per month were added.

How did Reagan do it? Tax cuts (yes, even for those evil rich people who ‘don’t need them’) and ‘trickle down fairy dust’. Not the ‘wild eyed socialism’ Obama ascribes to Reagan. Perhaps President Obama should tone down the class rhetoric and fearmongering and take a page from the Reagonomics book.

Barack Obama and the Terrible, Horrible, No Good, Very Bad Presidency

When we all heard his speeches during the 2008 campaign, it was something akin to the Lesley Gore’s Sunshine, Lollipops, and Rainbows. He promised more transparency and a return of civility in politics.  He was everything George Bush wasn’t, which provided the hot air that led him to the presidency.  Bush did run deficits and the orgy of spending and corruption scandals that plagued Republicans in 2006, that were not forgotten in 2008, allowed Democrats to control the narrative on a key Republican issue: Taxes and Spending.  The “tax and spend label” that usually sinks liberal candidates, or at least makes the race a competition, faded away.  Obama vowed to cut the deficit in half by the end of his first term and that was music to the ears of independent voters sick of Dubya.  However, when the ballots closed that miserable day in November, Barack Obama rode that wave of “hope and change” into 1600 Pennsylvania Avenue on a flawlessly executed campaign that ushered in our first black president.  However, after a $800 billion dollar stimulus, a trillion dollar new entitlement program, stagnant economic growth, a volatile job market, and high unemployment, the banner of hope and change is looking more like a Kafka-esque nightmare.  We’ve all transformed into beetles.

As for the so-called “stimulus,” we should thank the president.  He finally and irrevocably proved that government spending doesn’t spur economic growth and, therefore, killed the cornerstone of Keynesian economics.  We’ve had eleven recessions and recoveries in the past sixty years and, as Harvey Golub wrote in the Wall Street Journal yesterday:

This recovery is near the bottom of all 11. Cumulative nonfarm job growth is just 1.9% 34 months into recovery, the ninth-worst performance and well below the average job growth of 6.5%. Cumulative GDP growth is just 6.8% 11 quarters into this recovery, less than half the average (15.2%) and the worst of all 11…fiscal policy, under the control of the president and his party, increased expenditures by about $700 billion per year since 2008 and launched a spending package of about $800 billion (along with various “targeted” temporary tax reductions), all of which resulted in an increase in national debt of over $5 trillion. In other words, we borrowed $5 trillion, for which we will pay interest for who knows how long, in order to stimulate the economy now.

Moreover, Obama’s concerted effort to pass health care reform at the expense of job creating-centered policies, only created more uncertainty in the economy. Furthermore, Obama’s cornerstone of his health care reform is that it would curb costs and save trillions over the long term.  However, the $940 billion dollar price tag for this monstrosity actually has doubled to $1.76 trillion over the next ten years.  In all, the cost of this bill will incur $3.5 trillion dollars in deficits through 2022.  For liberals, this is the apotheosis of fiscal discipline. Moreover, for this bill to be SLIGHTLY palatable, Democrats would need to cut Medicare by $500 billion, institute the Medicare Doc Fix, and tax union “cadillac” health care plans by 2014.  None of which was expected to happen on The Hill. It was nothing more than a surreptitious expansion of the state and quietly edge away individual rights and liberties.  Concerning transparency, that pledge was hastily broken during the Obamacare negotiations.  Talk about changing the culture in Washington.

When this bill is fully implemented in 2014,  20 million Americans would be dropped from their coverage, while another 49 million will be dependent on government run health services.  This comes after reports show the Dependency Index, which decreased under Ronald Reagan, has increased 23% over the last two years. That’s an additional 67 million Americans dependent on government services.  Lastly, since the beginning of this year, 1200 companies have received HHS waivers highlighting Obamacare’s crushing costs and regulatory arduousness.  Sadly, I think the President missed what  George Will stated on This Week some two years ago that eighty-five percent of Americans had health insurance and ninety-five percent of the insured liked their insurance.

Concerning the unemployment rate, the Obama team promised if the stimulus was passed we would have robust economic growth and unemployment never to rise above 8%.  As the events played out, unemployment has been over 8% for the past thirty-eight months.  Treasury Secretary Geithner considers it a success, but I digress.  No president has been re-elected with unemployment above 7.2% since FDR and with an additional $5 trillion in new debt and nothing, but anemic growth to show for it; Barry should be updating his resume.  In fact, Jeffrey H. Anderson of The Weekly Standard wrote

Over the past quarter of a century (a total of 300 months), dating back to May 1987 and the Reagan administration, here are the 30 worst months (that is, the bottom 10 percent) for the employment-population ratio, along with the president who happened to be in office at that particular time.

1. (tie) July 2011, 58.2 percent, President BarackObama
1. (tie) June 2011, 58.2 percent, Obama
1. (tie) November 2010, 58.2 percent, Obama
1. (tie) December 2009, 58.2 percent, Obama
5. (tie) August 2011, 58.3 percent, Obama
5. (tie) December 2010, 58.3 percent, Obama
5. (tie) October 2010, 58.3 percent, Obama
8. (tie) April 2012, 58.4 percent, Obama
8. (tie) October 2011, 58.4 percent, Obama
8. (tie) September 2011, 58.4 percent, Obama
8. (tie) May 2011, 58.4 percent, Obama
8. (tie) April 2011, 58.4 percent, Obama
8. (tie) February 2011, 58.4 percent, Obama
8. (tie) January 2011, 58.4 percent, Obama
15. (tie) March 2012, 58.5 percent, Obama
15. (tie) January 2012, 58.5 percent, Obama
15. (tie) December 2011, 58.5 percent, Obama
15. (tie) November 2011, 58.5 percent, Obama
15. (tie) March 2011, 58.5 percent, Obama
15. (tie) September 2010, 58.5 percent, Obama
15. (tie) August 2010, 58.5 percent, Obama
15. (tie) July 2010, 58.5 percent, Obama
15. (tie) June 2010, 58.5 percent, Obama
15. (tie) March 2010, 58.5 percent, Obama
15. (tie) February 2010, 58.5 percent, Obama
15. (tie) January 2010, 58.5 percent, Obama
15. (tie) November 2009, 58.5 percent, Obama
15. (tie) October 2009, 58.5 percent, Obama
29. February 2012, 58.6 percent, Obama
30. (tie) May 2010, 58.7 percent, Obama
30. (tie) April 2010, 58.7 percent, Obama
30. (tie) September 2009, 58.7 percent, Obama

Interestingly, the 30 (or 32, including ties) worst months for employment in the past 25 years have all come after the most recent recession ended, in June 2009.  In other words, they’ve all come during the Obama “recovery.”

Yes. Let’s go Forward.

As the election draws closer, we have a president who simply cannot run on his record.  He is trying to strike it rich with this narrative of fairness. A political tactic that is not gaining traction with the independent voters, of which 57% think that American society is fair. As Alexis Simendinger wrote on Real Clear Politics, “these voters care about the size of government and debts and blame Congress more than Wall Street and special interests for gridlock and policy myopia.”  Issues that don’t necessarily favor the political left.  It gets even more bizarre with Obama’s position about private equity.

He bashed Romney in a rather apocryphal ad that showed how Bain Capital, the private equity firm Romney founded, closed down a steel plant, GST Steel, in Kansas City, Missouri.  What is interesting about this two minute exercise in inaccuracy is the fact that Romney left Bain in 1999 and GST Steel closed in 2001.  The managing director for Bain at the time was Jonathan Lavine who happens to be an Obama bundler and raised between $100-200,000 for the president.  This guy was still around when GST Steel was shut down.  Yet, the president accepts money from him.  Additionally, Anderson Cooper commented on the hypocrisy when Obama attended a fundraiser hosted by Tony James of Blackstone Group, a private equity firm, on the very same day the Bain attack ad was released.  Can you smell the cynicism?

As a result, many on the left have flocked to the support of private equity, including some of the president’s staunchest supporters.   Not the result you want in a time where you’re fighting for your political life.  This makes the second political blunder, the first being the Life of Julia that detailed the sixty-five year presidency of Obama, by what was thought to have been an inerrant political campaign.  One that has rapidly lost its luster.  I think we can safely say that Obama’s political acumen was not gauged properly four years ago.

A student of the far left, Barack Obama’s presidency is marred by high unemployment, increased debt, sky high deficits, a new trillion dollar entitlement that failed to curb costs, and a government sponsored recovery package that is painfully anemic.  He failed in his promise to cut the deficit in half by the end of his first term and has peddled a dependency agenda that is inherently dangerous to the socio-economic health of the nation.  He has prevaricated at every event to tackle our debt and deficit responsibly by nixing Simpson-Bowles and creating a “Super Committee” in the fallout of the debt ceiling debacle last summer to avoid taking on the issue personally.  We cannot afford another $5 trillion in new debt.  We cannot afford Obamacare.  We cannot afford another four years of Barack Obama. It’s 2012 and I’ll do everything I can to see that Mitt Romney is elected.   I look forward to saying goodbye to this terrible, horrible, no good very bad presidency.  Game on!

 

By the People, for the People, Of the People.

Written August 2011

The devastation from Irene caused can now be the center for job creation by the people running this country. As they continue to try to sell the idea that food stamps, welfare, and unemployment all stimulate the economy, hence so does Irene. With that type of logic we should applaud all natural disasters since they are job creators according to this administration. What is really needed to stimulate the economy and create jobs?

The creation of a welfare state is certainly not the solution to our current economic problems, yet that is the direction we are heading. How well is that working out for Europe? The UK? Now this president explains things in such a way that some people may believe he has the answers to end these problems. Understandable, that teleprompter is a great device, along with those people who actually write the words that come out of the mouths of those in Washington, including our President. Mr. Obama finds anyone and everyone to blame for what is going on under his watch, and heck he may even believe  that the problem lies with congress considering he continually asserts the house and senate cannot agree on issues like the debt. He like blame everyone for the downgrade and refuses to recognize that S & P warned if there was not a plan in place to cut spending the downgrade was inevitable. Instead the president got what he wanted, at any cost, which was increase the deficit by raising the ceiling, continue spending as always, and not produce the type of cuts in spending that were/are necessary.  Let’s be honest: The downgrade occurred as a result of spending and the unwillingness of this president to lead in such a way that is critical for this country to survive economically.

Mr. Obama will soon present his new job creation plan, no doubt something similar to his other rhetoric. These stimulus packages and printing more money cannot solve the problems we, as a nation, are experiencing, yet that is always part of Mr. Obama’s solution. How many jobs and how will did those packages work the last time?  Mr. Obama believes in government control and big government. But the reality is, for the American people to truly understand what is happening in Washington and truly realize the actual goals of this government; they would need to get a firm grasp on the issues at hand. How many of you can say you truly understand what is needed to create jobs and get this country moving along into economic prosperity?  It really isn’t that difficult, what is difficult is having to decipher the constant rhetoric and untruths of corrupt politicians whose motivation is stimulated by their own greed and arrogance.

For corporations to return to the United States, thereby creating jobs for the American people it would require the government to lower current tax rates so they are competitive with other countries.  Currently the United States has the highest tax rate on businesses than any other country in the world.  The government would also have to restructure and minimize regulations on businesses.  Right now most businesses cannot afford to stay in this country; the regulations continue to grow, and most business owners cannot survive. Take a look around you – In every nook and cranny of this country businesses are failing. How many abandoned sites do you see on a daily basis? Look, and keep looking.

As our Constitution is being dismantled on daily basis, and as the American people remain disengaged, the ideas of our fore fathers and everything they put into place in an effort to protect this country is slowly disappearing. People like Pelosi and Reed, as well as others, forget that the government is: FOR the PEOPLE, BY the PEOPLE, and OF the PEOPLE – they need to be reminded of that.

 

Note to Washington Post: Cover Katie Perry, not Rick

Republicans won’t know for months how seriously voters in Iowa and New Hampshire will take the presidential candidacy of Gov. Rick Perry (R–TX), but right now the Washington Post takes him very seriously indeed.

The front page of Sunday’s Post marked the beginning of the official media Stop Perry Campaign.

You may recall last week’s column discussing a new rating system for media bias (Left Turn: How Liberal Media Bias Distorts the American Mind) but the Post story is so obvious one doesn’t need a climatologist to tell you it stinks.

It’s headlined; “Going to the heart of the ‘Texas miracle’ — Even as public sector jobs surge, Perry dismisses government’s impact.” Followed by: “Government jobs fuel much of Perry’s ‘Texas Miracle.’”

The theme is Rick ‘10th Amendment’ Perry is another Tea Party ignoramus criticizing the benevolent government that’s doing its best to make him look good.

If Perry’s job–creation is simply cashing ‘stimulus’ checks and counting the new feds arriving daily, then he’s a hypocrite at best and a liar at worst. And since he’s a Republican, probably both.

A graph that accompanies the story shows government jobs from December 2000 to June 2011 grew 19 percent, while the private sector — filled with sweatshops, oppression and corporate overseers — only grew a feeble 9 percent. And most of that growth was serfs hired to detail government worker’s cars made dusty by the long drive from DC to Austin.

A reader is left with the impression one can’t turn around in Texas without bumping into a bureaucrat.

But the use of percentages, instead of absolute numbers, proves the truth of Disraeli’s observation: “There are three kinds of lies: lies, damned lies and statistics.”

The first problem with the ‘Rick Perry: Government Jobs Parasite’ attack is the facts don’t support it. Perry talks specifically of the growth in private sector jobs and, according to the US Dept. of Labor, from June 2001 until June 2010 Texas added more private sector jobs than the other 49 states combined. Which is miraculous without the inclusion of a single paper–pusher added to Leviathan.

Will Franklin writes New York was the only blue state to add jobs over the past five years and that Texas added 100 times the number of private sector jobs created in the home of The New York Times.

The Post then emphasizes the implied Perry ‘hypocrisy’ by declaring; “The disparity has grown sharper since the national recession hit. Between December 2007 and last June, private-sector employment in Texas declined by 0.6 percent while public-sector jobs increased by 6.4 percent…”

What those percentages conceal is the number of private sector jobs greatly exceeds that of government jobs, consequently a smaller number of government jobs will move the percentages more than the same increase in private sector jobs. When you consider employment in the private sector increased a total of 756,600 jobs, which is triple the number of new government jobs, the Post’s fantasy of government–driven prosperity disappears.

The December 2007 to June 2011 is an interesting use of dates, because taking the numbers from JULY 2007 to JULY 2011, which is both symmetrical and current, we find that total government employment in Texas increased by 120,000, while private sector employment also increased by 81,300 jobs.

But if you break the government increase into federal, state and local jobs over that four–year period, then the picture changes again.

Federal jobs increased during that period of time by 12,400, much of that no doubt due to a temporary increase in census workers. State workers increased by 17,200 and local government workers grew by 90,400. As governor, Perry only influences the state and local portion of that increase and, once again, he does not include those government jobs as part of his job–creation success story.

However, during that same four–year period the total population of Texas grew by 1,979,619, an increase of 8 percent, yet local government employee growth was only 7 percent and state employees grew by only 4 percent. Both figures only serve to buttress Perry’s small–government credentials.

What’s more, if you look at total government employment in just the last year (July 2010 – July 2011), total government employment has declined by 14,500, while private sector jobs have increased by 284,000.

The real story is that Perry is protecting the taxpayer and attempting to hold the line on government job growth at the state and local level, while at the same time working to continue the government policies that encourage and contribute to the explosive growth of private sector jobs during the Obamacession.

That’s the story the Washington Post — and the rest of Obama’s Amen Chorus in the mainstream media — don’t want voters to know.

Entitlements – The Effects of Big Government

While the Democratic party continues to find ways to spend money, and the president is off golfing, taking vacations, or just out campaign trail hoping for an addional four year term – the country is falling into a deeper recession. Whether people agree or disagree, democrat or republican, it doesn’t matter; just look at how much the cost of goods and services have gone up in the past few weeks. Although this presidents spending has well exceeded that of his predecessors, he alone is not responsible for the debt crisis, nor the creation of the entitlement state, or a welfare society that currently exists. No,  the creation of big government began sometime ago, its effects are just beginning to catch up to us now. The sad part is, there are so many on the Hill who what to make the government even bigger, they fail to recognize the warning signs they are getting from those in Europe who are seeing the errors of their ways.

The spending in Washington that has been going on for decades is at the root of the problem.  However, the lack of clarity on how true job creation actually occurs – which is not by raising taxes or extending unemployment benefits as suggested by democrats.  The self-righteous attitudes of those on the hill, whose own self-interests seem to come first,  are just a few examples of what is at the crux of the problem. The reality is we live in a welfare society where people truly believe government entitlements are their God-given right.  These same people fail to recognize making government bigger than what it already is, is not the answer.

What is happening in Athens, London, and other parts of the world, and is beginning to happen here in the United States is just the beginning of waht happend to economys that cannot sustain government spending. The flash mobs, threats, violence, and so on that occurred in Madison, Wisconsin as well as other parts of the country, are the just beginning of what happens in a welfare society driven by people who have visons whichh are not founded in a realistic way.  The issues with Wisconsin employees are just one example of what is spreading across the nation.  These people are beginning to feel the end result of what happens to people who rely on entitlements simply because they were promised by a government whose spending well exceeds its income. This is what they were promised and this is what they truly believe they are entitled to at any cost, they don’t care.

There is a common theme that exists: even when times are rough, and government clearly cannot fulfill their expectations, and cuts are necessary, these flash mobs are proof that people demand what government has promised. Regardless if it bankrupts the state they are living in, they truly believe they are entitled to things such as pension plans they did not pay into, early retirement at age 53 or earlier, free medical benefits, welfare checks, food stamps, and the never-ending unemployment checks. The violence is just beginning. In addition, union officials are sending people to states to fight against anyone who tries to put an end to the entitlements. People are being threatened; their businesses are risk, if they don’t comply with the threats. One person in Kenosha, WI who was suppose to hold a tea party meeting was threatened and forced to hold the meeting elsewhere; scared by union goons.

What we are seeing in London is just the beginning of the end of years of government entitlements. Generations of people who have spent their entire lives living on government handouts and stimulus – the reality of government outspending always catches up; it is just a matter of time.  The people of London, for example, that time is now. The same thing is happening here and people are reacting the same way – fighting, picketing, rioting because they have a big government mentality. They believe that they have a right to the all the free stuff government has been providing.   Remember: As government keeps getting bigger people and business keep getting smaller – how do you create jobs from that? How do you like the end result? Think about that next time you go to vote or contact your congress man or woman.