Among the issues most commonly discussed are individuality, the rights of the individual, the limits of legitimate government, morality, history, economics, government policy, science, business, education, health care, energy, and man-made global warming evaluations. My posts are aimed at thinking, intelligent individuals, whose comments are very welcome.

"No matter how vast your knowledge or how modest, it is your own mind that has to acquire it." Ayn Rand

14 August 2012

Government Centrally Planned Economy Continues to Kill Job Recovery

The July 2012 Bureau of Labor Statistics unemployment report of the Household Survey without any seasonal correction of data, revealed a loss of 76,000 jobs in July compared to June.  This was rarely reported in the mainstream media.  The nominal, though rather meaningless, unemployment rate went up from 8.43% to 8.56%.  The percentage of the population with jobs dropped to 58.81% from 58.89% in June.  The headline statistic reported by the mainstream media was that 163,000 jobs were added in July.  This was based on seasonally adjusted data from the Establishment report, but there are problems with the seasonal adjustments in this unprecedented recession and there are a record number of self-employed people these days since they cannot find jobs otherwise.  Many of those self-employed people decided in July that they were not really effectively employed any longer.  They had tried self-employment in desperation and failed in the uphill struggle with the Obama economy.  To take the fate of these people into account, we need to examine the Household Survey data, as I have been doing all along in this unprecedented and never-ending recession.

The number of missing jobs is calculated based on the employment workforce of January 2000 when many quality jobs were available and the unemployment rate was 4.04%.  The workforce then was 67.49% of the total non-institutional civilian working age population.  The number of missing jobs in July 2012 is slightly lower than it was in July 2011 by 256,000 jobs, but it is higher by 696,000 jobs than it was in the miserable month of July 2010!  In two years of supposed recovery the number of missing jobs has actually increased by almost 700,000.  This is not a real recovery.  It is all smoke and mirrors.  The percentage of missing jobs compared to those wanted went up from 12.74% in June to 12.86% in July.


Biomedical and diagnostics companies such as Medtronic, Boston Scientific, Stryker, Covidien, Abbot Labs, Qiagen, Invacare, GE, SurModics, WorldHeart Corp., the Cordis Div. of Johnson & Johnson, C. R. Bard, BioMerieux, Celera, Cardo Medical, Resetta Genomics, and Care Fusion are all laying off employees, many citing the 2.3% tax on all revenues, not profits, from biomedical devices and on clinical testing in ObamaCare, or more accurately, ObamaUncaringTax.

Defense companies are doing the same in anticipation of the large cut-backs in defense spending brought on by the sequestering of defense funds as the Democrat Senate has failed to produce a budget in the entire presidency of Obama, or over 1203 days or 3.3 years.  This budget is required by law for very good reasons, but this Senate is lawless.  A recent study by George Mason University scholars calculates that the sequester cut-backs in military equipment purchases and R&D will result in the loss of about 1 million jobs.  Because the reduction in funds begins on 2 January 2013 and the WARN Act requires companies making large layoffs to give employees 60 days notice, these reductions will substantially have to occur by 3 November 2012.  Identifying the victims and processing such large numbers of lay-offs takes a massive amount of management time and hurts productivity.  The best way to handle such a process is to begin paring employees early, which many of these companies have been and continue to do.  Most of these cuts have nonetheless not yet been announced or made.

The Obama and EPA war on fossil fuels also is killing jobs.  Coal mines are closing and coal-fired electric power plants are closing.  Some railroad jobs will be lost as a result.  Because electricity costs are going up substantially as a result of losing low-cost coal-fired power plants and the mandates for very expensive wind and solar power, many businesses have higher costs and cannot hire added employees or are losing those they had.  The Obama restrictions on offshore and federal lands drilling and exploration for oil have caused many potential jobs to be lost in those activities.  America has an incredible portion of the world supply of coal, oil, and natural gas.  Feeder and long-distance oil pipelines have also not been built, which would have provided many jobs.  Refinery expansions and new refineries are badly needed, but regulations make such investments very hard to make.  This is another lost opportunity and results in higher fuel costs for transportation and higher plastic costs as well.  These higher costs inhibit the growth of many companies and add to reductions in consumer disposable income.  This senseless Obama vendetta has cost Americans many, many jobs.

Good government does not steal so much money and other resources from the productive private sector.  Good government is minimal government and serves only to protect the sovereign rights of the individual to life, liberty, property, the ownership of one's own mind, body, and labor, and the pursuit of happiness.  Such legitimate government makes way so that a robust private sector can produce a cornucopia of jobs, products, services, and ideas.  The illegitimate Obama government is greatly inhibiting the private sector and preventing the private sector from generating this abundance of wealth.  The role of government in producing jobs is simply to get out of the way.  That is a fact the Democrat Socialists will never understand.  If you want jobs and a healthy economy, this Obama administration and this Democrat Senate must be dismantled as a result of the November election.

4 comments:

Harry Dale Huffman said...

It looks like the number of missing jobs went up from about 6 million at the start of Bush's administration, to about 16 million at the start of Obama's, and from there to say 22 million in the depths of the recession, where we are basically still at, and throughout Obama's "reign" (I use the term deliberately). This assigns about 10 million, of the 16 million missing jobs due to the recession, to Bush (in 8 years), and about 6 million to Obama (in 4 years). Bottom line, Bush did not take care of the economy, and Obama's "hope and change" has completely failed to have any positive effect whatsoever. Time for an experienced, successful businessman with leadership experience--that would be Romney--to start a real turnaround and improvement in the nation's finances.

Charles R. Anderson, Ph.D. said...

I commented early on in doing these missing job calculations that jobs have been inadequate in increasing numbers since about 2000. This is due to large government spending increases at the local, state, and federal levels and to rapidly increasing regulations at each of these levels. The blame is widespread and some of it is Bush's, but we also should remember that Presidents carry out the laws made by Congress. At the federal level we are too quick to attribute almost any problem to the President and too little responsibility is attached to Congress.

So, was Bush really responsible for the 4 million plus jobs lost between Dec 2007 and Dec 2008, or were those jobs due to long-term Democrat promoted policies strongly argued by Democrats when Bush and others warned of a home mortgage bubble?

Of course, even without the heavy government malfeasance we had in this burst bubble, some recessions will occur as part of the business cycle. But, the recovery from business cycle recessions should be rapid. In this case, the recession was much deeper than a usual business cycle recession due to seriously awful government policies. Then, the recovery has been severely impaired by a very wrongheaded Congress and President in 2009 and 2010 and a very wrongheaded President and Senate in 2011 and 2012.

I expect improvement only if Romney is elected President. That improvement can be quick since the end of ObamaCare, Dodd-Frank, insane EPA and NLRB rulings, and problems in the FDA, USDA, DOE (both), State, and other agencies could be ended or corrected quickly. Other problems such as those owing to the weak European and Japanese and weakening Chinese economies will linger. But, the improvement should still be very significant.

Anonymous said...

No, that is not plausible because romney would just be another Bush and were has that got us? ohh yeah nowhere Obama got the main job done what is that you ask? Saving lives. which should be more important then money in anybody's book. So vote for Obama!!!

Charles R. Anderson, Ph.D. said...

Bush allowed too much money to be spent, especially when the Democrats controlled the House and Senate in 2007 and 2008. But, his spendthrift spending was easily beaten by Obama.

ObamaCare or ObamaUncaringTax will further increase medical costs and will cause considerable rationing of health care. Medical Care quality will suffer and doctors will refuse to treat ever more Medicaid and Medicare patients. This will lead to loss of life.

If you think his EPA rulings are going to save lives, you are wrong. There much damage for almost no benefit and the number of out-of-work suicides will go up. The out-of-work will also be more likely to be unable to afford doctor bills.

There are no lives saved in socialist societies as they sink into despair. People turn to drink and die early as they live their hopeless, deary lives.