06 November 2009
Obama Administration Finally Reports October Unemployment
Not since the aftermath of Jimmy Carter's rampant inflation, which followed Nixon's price controls fiasco, have we seen such unemployment as that engineered by Obama and the Democrat Congress. Yes, there was a major increase in unemployment under Bush and the Democrat Congress with considerable help from the Federal Reserve, but we would be recovering from that were it not for the remarkable ability of Obama and an energized socialist Democrat leadership in the House and Senate with their large majorities to create a horrible business climate.
Obama and henchmen would have us believe that our biggest problems are health care and man-made global warming. And maybe that we have too few workers paying union dues and far too many workers in the private sector rather than the public sector. Meanwhile, the private sector still employs most Americans, but it is employing fewer and fewer of them. The official, but understated, unemployment rate at the end of October was an astounding 10.2%! No wonder any hint of such a large increase was suppressed by the administration prior to the election on Tuesday. This is the U.S.'s highest unemployment rate since April 1983, 26 years ago. We have had job losses for 22 straight months.
Obama is conducting a string orchestra in a mad fiddling contest with the devil, the likes of which we have never heard or seen. Nancy Pelosi is first fiddle and Harry Reid is second fiddle of the Congressional section, which is filled out with the fascist socialists of the Congress. On the other side of the string orchestra are the Marxist and Maoist Commissars and Czars of his administration section. They are all fiddling madly to celebrate and encourage the burning of the American private sector and that fable of a Constitution decreeing limited powers for government and that silly notion that individuals have sovereign rights. They are laughing gleefully as they play the devil's tune.
Since December 2007, the U.S. has lost 7.3 million jobs, but we will all be delighted to know that Obama says he saved 640,000 jobs with the stimulus bill earlier this year. Let's see, then $787 billion of stimulus created 640,000 jobs at $1.23 million per job. It is good for people to have a work ethic and to want to work, but it sure is rich to charge taxpayers $1.23 million per job! Or am I being unfair here? After all, only about a quarter of the Stimulus Bill appropriations have been spent. But, then why should we give the government any credit at all for taxpayer money spent just in time to buy as many votes as possible just before the 2010 elections? Even in terms of the money spent, these would be very expensive jobs, at about $307,500 apiece. The private sector would usually produce at least 6 or 7 new jobs with so much capital to invest and spend. But Obama and the Marxists know so little about business and economics that they do not have enough sense not to shout about their "great job creation accomplishment."
So, we now have 15.7 million would-be workers unemployed. Many of them have been unemployed for more than six months, a record 35.6% of them. Before the recession, 63% of adults worked, but now only 58.5% work. The Democrats have championed the little guy, those without a high school diploma, into 15.5% unemployment. Unemployment for those with the high school diploma is a mere 11.2%. 15.7% of blacks are unemployed and 13.1% of Hispanics are also. This is very effective support for these Democrat-favored minorities by the Democrats. Somehow, being anti-business and anti-wealthy people, is not creating the jobs their supposed constituents need. One should be arguing that being anti-business and anti-wealthy people is the equivalent of being anti-black and anti-Hispanic. The private sector lost about 558,000 jobs, but the public sector lost no jobs. The public sector and its employees is now being supported by many fewer people with private sector jobs and we should add the public sector to the enemies of blacks and Hispanics.
Those who have given up on finding jobs and those working part-time who wish to work or work more are now 17.5% of the available workforce. The total hours worked fell another 0.2% in October and the average workweek is now a mere 33 hours. But, average hourly wages are up 2.4% in the last year, perhaps because job losses have been higher among the more poorly paid, who are usually the least productive workers and the first to be let go in hard times. These workers are also the more likely to be intimidated or persuaded to join a labor union, which would further hurt a company's productivity. Thus, it makes still more sense to let such workers go when unions are being favored by government.
There was some good news. Productivity went up per employed worker at a 9.5% annual rate. Unemployment decreased from 4.9% to 4.7% for those with college degrees. Managers and professionals were being hired, so their unemployment rate fell from 5.2% to 4.7%. The technology, education, and health care sectors were hiring. Temporary workers were also hired. But the situation was woeful still for construction, manufacturing, and service and retail.
Apparently, increasing taxes, deficits, government spending, regulations that serve no purpose, restricting international trade, taking over industries, dictating executive compensation, crippling oil and gas exploration and development, threatening the coal industry with extinction, and restricting fossil fuel energy use is not the way to produce jobs. In fact, it is a very good way to kill jobs. This is the Marxist, Maoist, fascist way. The European socialist countries have had 10% unemployment rates very frequently. Obama has imported these unemployment rates to the U.S. The strange thing is, the Europeans have been turning away from some of their failed policies, even as Obama turns us toward them. He is talking about increasing corporate tax rates and those on wealthier individuals, even as most European countries have been reducing those rates in recent years. We and the Japanese now have the highest corporate tax rates in the advanced world. It is hurting both of us badly. But, lowering corporate tax rates just does not fit the Marxist rhetoric or the populist demagogue's style.