If unemployment stays high, Obama can kiss D.C. goodbye

Posted 7/11/11

Just after inauguration, President Obama insisted that Congress pass a stimulus package that included additional spending above $775 billion. The stated basis for such stupendous additional spending: “unemployment would remain below eight …

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If unemployment stays high, Obama can kiss D.C. goodbye

Posted

Just after inauguration, President Obama insisted that Congress pass a stimulus package that included additional spending above $775 billion. The stated basis for such stupendous additional spending: “unemployment would remain below eight percent.”

When the Pelosi-Reid controlled Congress passed the Obama “pork on pork” package of political payoffs, it totaled $787 billion. Now, the real total with interest and added costs is projected to have cost taxpayers nearly $1 trillion.

But did unemployment remain below eight percent? No.

Instead, the most recent employment numbers indicate the unemployment rate is 9.2 percent. And that number is understated.

Obama’s Chairman of the Council of Economic Advisers, Professor Austan Goolsbee, wrote in the White House Blog last Friday, “Overall payroll employment rose by just 18,000 in June.”

In the same piece, Goolsbee wrote “as the Administration always stresses, it is important not to read too much into any one monthly report.”

That’s interesting. Why?

Last month, commenting on that disappointing jobs report, Goolsbee said “One month is not a trend.”

But, the month before that, after three months of decent job growth, Goolsbee said (get ready for this) “It’s clearly a trend.”

This begs the question, are the American people supposed to accept the professor’s teachings that a few months of qualified good news is a trend, but two months of unqualified bad news is not a trend? Talk about spinning …

More importantly, how are Americans supposed to trust elected officials and their appointed experts when political spin with the implicated manipulation is the continuing modus operandi?

Now, back to the latest national unemployment number.

The U.S. labor force is smaller today than when Obama took office two-and-a-half years ago. If the national labor force were the same size today, unemployment would exceed 11 percent. That calculation is based on Bureau of Labor Statistics data.

The sad and simple truth for hardworking Americans is that the uncertainty that employers everywhere feel that causes them to hold off on hiring was all too predictable. The very sad and whole truth for all Americans who want to work is that Obama’s policies do not support job growth.

Some will continue to wonder when the president or someone in his administration will figure that out. But, increasingly, more are concluding that he knows what he is doing to the economy.

Consider the following.

When you have an administration hell bent on installing a huge government healthcare program that makes it impossible to know how much it will cost to cover your employees; an administration that demonizes business; an administration that installs an National Labor Relations Board that sues a company for expanding to a right to work state; an administration that has exploded government spending; an administration that, once again, threatens new taxes on job creators and more, the outcome is predictable.

Before announcing his resignation, Goolsbee said, “The monthly employment and unemployment numbers are volatile and employment estimates are subject to substantial revision.”

Volatile too are citizen tolerance and voter support for failed practices and the progressive-in-chief.

Goolsbee is leaving Washington to avoid losing tenure at the University of Chicago. The president should borrow Goolsbee’s GPS because his tenure may not be extended by voters.

No president during modern times has been reelected with unemployment above seven percent.

Richard Olivastro is president of Olivastro Communications and founder of Citizens for Change. A professional member of the National Speakers Association, he is available pro bono for charitable fundraisers and public forums and can be reached via email at RichOlivastro@gmail.com or by phone at 1-877-RichSpeaks.