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  • Recovery Still Sluggish with More Bad News on Jobs

    Though the official report on May’s job performance doesn’t come in until Friday, early signs aren’t looking good for the U.S. economy.

    The LA Times reports that “U.S. private-sector payroll growth slowed sharply in May, falling to the lowest level in eight months,” according to an ADP Employment Services report. Meanwhile, growth in the manufacturing sector slowed more than expected to its lowest level in over 1-1/2 years.

    The LA Times reports on the preliminary numbers:

    The ADP report showed private employers added a scant 38,000 jobs last month, falling from a downwardly revised 177,000 in April and well short of expectations for 175,000. It was the lowest level since September 2010.

    The report boded poorly for the key U.S. non-farm payrolls report at the end of the week. Credit Suisse lowered its estimate for Friday’s employment number to 120,000 from its previous forecast of 185,000 and its private payroll estimate to 135,000 from 200,000.

    Unfortunately, sluggish growth isn’t a new story. Last month showed disappointing recovery in the labor market and a slow rate of hiring. But America shouldn’t be surprised given the economic policies of the current administration. It all starts with the hostile business environment the Obama administration has created.

    The Heritage Foundation has some ideas for Congress if they want to turn the economy around– reforming regulations to reduce unnecessary business costs, reforming the tort system, removing barriers to energy production, reducing taxes on companies’ foreign earnings if they bring their earnings home, and passing pending free trade agreements.

    And in the just-released “Saving the American Dream” plan, Heritage proposes significant reforms to help foster the growth of businesses, simplifying business taxes and enabling businesses to predict the tax consequences of their decisions. Click here to read more about Heritage’s plan, and stay tuned for our analysis of Friday’s jobs report.

    Posted in Ongoing Priorities [slideshow_deploy]

    5 Responses to Recovery Still Sluggish with More Bad News on Jobs

    1. Charles,U.S.A. says:

      A quarter of our Country is being Devastated by Tornadoa's and Floods and our jobs are being sent over seas or giving to illeagal immagrants that aren't on the books.American People are losing everything,while our Goverment wants to spend our Tax money on Helicopters to see a sports game.Our Country is headed for a cliff to were there is no safety net.If there isn't anyone that can STOP this,The only Jobs that are gonna be out there is Bank Jobs,Crime Waves and Sercurity jobs in the Prisons.NO ONE will be Safe.It's up to All The American People to Save Our Country,but we need to Stop Corrupt Politics that are running our Country.We need to AID and FUND our People,not another Countrys.

    2. George Colgrove, VA says:

      And to think of all the rosy projections made years ago regarding how the current massive federal spending was going to be paid for. We were supposed to be in booming times right now.

      Be warned, we are currently being promised the same rosy predictions for the next 10 years to support the continued bloated spending by both Ryan's budget plan and the Heritage Foundation's budget plan.

      We need to see we are in a demise characterized yesterday as the upcoming "Great, Great Depression". We need to stop with the rosy projections and see things as they are – BAD!

      We need to start cutting government TODAY as today we will go into debt by another 4 billion dollars or 160,000 decked out Ford Mustangs – more than are sold in any particular year!! It will take a long time to get out of this and we need to recognize that the federal government is not the solution.

      What I would do:

      I agree with the HF, simplify the tax system. We need it to fit in a simple pamphlet and the form on a single sided page.

      Eliminate corporate and all other business taxes with corresponding elimination of federal agencies that deal with corporate reporting. It costs companies an aggregate of trillions of dollars to report to the federal government on taxes that barely reach $100 billion – not worth it! People with small sole-prop or LLC businesses will be required to report a minimum personal income that will be taxed.

      Eliminate the property tax on everything

      Phase out the child credit credits

      Make everyone pay something.

      Take out EVERY loop hole and make the tax system free of any further manipulation.

      Make it mandatory that budgets have to be written at ALL levels before a tax rate is imposed. The people need to vote on the tax rate and if not passed – budget cuts need to be made. If there is no budget, there is no corresponding tax to be collected.

      Make part of this legislation – or make an amendment forcing all levels of governments to have a balanced budget.

      Lastly, get healthcare out of the federal government – period! No Medicare/Medicaid or ObamaCare. Leave it to the private sector to work out.

      A stable and transparent tax code will do much to restore confidence in the economy.

      This economy must start from the bottom up. People need to know they can build a deck on their home without the perpetual punishment of a property tax. This will spawn much needed construction from the bottom up. People wanting a deck will pay people to build it. As construction employees and materials start to flow – so will the money. Once people start buying again, companies will have the freedom to hire new people and expand (or rather reopen) factory space.

      This need not be done by federal stimulus funds, but with funds people worked hard for and earned. It will be slow – especially now that things have gotten so bad. Reagan's trickle down theory became fact and it did work – until the federal government got into the picture. What I am proposing is the same trickle down mechanism, but starting it much further down the economic scale. To do that we need to eliminate property taxes. As construction starts again, and as people buy nice cars or boats, it will ripple up the economic ladder, and like sound waves, once it hits the top, it will resonate back down however with ever-greater force.

      Then we just need to leave it alone – for good. It worked in Reagan's time; it will work again in any other time. Public officials need to start recognizing they have little to contribute in theory and experimentation. They need to get real jobs and get out of the way. They are useless and damaging and a massive drag on the economy. Government is a solution desperately in search of a problem and where they cannot find a problem, they make them. And man-o-man have the inept overpaid and over numbered federal workforce made a doozy of a problem on the economy!

    3. George Colgrove, VA says:

      What gets me is that months after 9/11 the federal workforce was able to mobilize in government growth mechanism with the creation of agencies to fulfill the requirements of the patriot act and the creation of the slothy DHS.

      The Columbine tragedy occurred and nearly overnight, we had strict gun control policies in place.

      ObamaCare passes and for legislation that would not take effect for 5 years, the federal apparatus was starting to be assembled in near minutes. When it takes the ineffective federal workers six months to a year to hire one person, these events among so many others resulted in near immediate growth of government.

      Yet we have a debt crisis that with the economic data we read nearly daily is confirming. We the people changed over 700 local and state office to Tea Party candidates from democrats as well as swapping the house of representative from a 2/3 majority democrat to republican control! The people are speaking loudly and the economy is showing signs of death, yet 5 months later, there is no perceivable change in the federal government. Growth happens over night – showing that the feds can be mobilized to work fast. But cuts need to take 10 years to accomplish at the cost to the nation's future. Since 2008, the federal government has grown by 100,000's people. Why not just mobilize the federal workforce to eliminate all new positions/programs created since 2008!

      All other crisis got immediate attention. We need the same immediate attention to the debt and economy crisis we are under today.

    4. George Colgrove, VA says:

      I read the "Grapes of Wrath" in high school and have been educated on the FDR created Great Depression. I do not want a do-over on that. It is starting to be accepted by scholars and economists that FDR's big-government policies and solutions were the reason why the Great Depression lasted for decades. War spending did not get us out as was hoped for. What hurt was excessive high taxation and a transfer of power from the people to the government. Social Security was started to solve the government created problems. We are now suffering from the long term effects of these choices. Imagine where we will be 70 years from now if we do not apply what we learned by getting rid of these programs. So much wealth has been destroyed over the last 70 years.

    5. Sandy Olnhausen says:

      We need more action like those suggested by George Colgrove's above comments!

    6. Leon Lundquist, Dura says:

      You go George.

      Mike, it is clear to me Obama has a Plan. Trouble is it is the Kloward Piven Plan, to bring down the mighty American Military by destroying the American Economy. I like to call it Treason and to back me up, every dog gone thing Obama does serves the Foreign Interest! So, it isn't that Obama doesn't know how, he knows how to create jobs! He refuses to do so! That is betrayal, he is not Representing the People, rather he is running a circus show that his Indoctrinated Zombies buy like it is real!

      "Hate The Rich" is the unifying principle among Progressive lunatics! They forget the Rich are Americans too! They are Loyal Americans and cannot be singled out for Unfair Treatment. Have we forgot Equal Justice? So Obama can take away anybody's wealth? Is that America?

      George Colgrove is right. Nobody's Budget cuts deep enough! The essence of run away Spending is all those Big Expensive Agencies who get theirs outside the Discretionary Spending class. But hey! Those guys are establishing Dictatorships! In America! It isn't about the Budget! It is about BIG Government doing BIG Damage to the American Way of Life! You cannot nickle and dime Obama to death on the Budget because the Budget doesn't include the Departments. That money is 'spent' but nobody puts it on the table. I think Rep. Darrel Issa could do more that Congressman Ryan to bring down the Deficit! Seriously, Abolish Obama's Shadow Government for their High Crimes! See? Then it is easy, just cut all those crazy criminal Departments! Impeach his Shadow Government! Please, please! See these Agencies for what they are! Unconstitutional Forms of Government!

      Obama has all but guaranteed a Double Dip Recession! It is his Oil Policy, his Agriculture Policy, his Foreign Policy, all of it! We have a new Real Estate Bubble to pop in Commercial Real Estate! We have the Democrats who just "Walk Away" from their Constitutional Duties! We have tens of thousands of new Regulations against Business! We have inevitable disaster approaching from runaway SEIU Government Worker's Union Pensions! Like clockwork our American Industries are attacked! (With public money and against our National Security Interest!) We have the World Wide Food Shortage! Exploding Food Prices! Exploding Energy Prices! And it is calculated to bring our Nation to its knees THIS YEAR!

      Then, the way out of this mess is blocked! Like the way they negotiate with the Enemy to his advantage, the Obama Administration does everything in its burgeoning Power to harm Job Creating Americans! I don't wonder at all why George goes off on this subject! The truth is so bad it is practically Mind Destroying! Please Impeach SOME Body! Does no one follow their Oath?

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