• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Morning Bell: Unemployment Rises Again

    For those hoping for good economic news out of Washington today, they’re in for a terrible disappointment. According to the latest jobs report from the Department of Labor, the economy created only 69,000 jobs in May — well below expectations — while the unemployment rate rose to 8.2 percent, and job numbers from March and April were revised significantly downward. Meanwhile, Taxmageddon is threatening the U.S. economy and holding back growth, but strangely, President Barack Obama isn’t doing anything about it.

    Heritage’s J.D. Foster explains that while a second recession isn’t necessarily on the horizon, the news is nothing for the Obama Administration to brag about:

    These jobs figures are consistent with other fairly bleak news. For example, first quarter economic growth was revised down to 1.9 percent, while an important measure of performance in the heartland, the Chicago Purchasing Managers’ Index, fell to its lowest level since September 2009 which was near the bottom of the recent recession. None of this necessarily points to a second recession, more like continued muddling and hardly in a position to withstand an economic shock such as, for example, the developing deep recession in Europe.

    Europe’s unfolding recession is entirely of its own making, the product of their own housing bubbles, badly managed public finances, and an experiment in monetary union that went terribly wrong. Unemployment across the eurozone hit 11 percent in April – the highest level since the euro was created 13 years ago.

    Much like Europe, the United States economy is being dragged down by crippling debt and future fiscal uncertainty. As former Federal Reserve Board Chairman Alan Greenspan noted, businesses are holding back on investing for the future because, “In short, there is a fear of the future.”

    But while Europe wrestles with its euro conundrum, the United States is facing its largest tax hike in history — otherwise known as Taxmageddon — due to hit the American people on January 1, 2013. Through the expiration of existing tax policies and the imposition of new taxes, families and businesses will be hit with a $494 billion tax hike if Congress and the president don’t take action to stop it. Apart from the painful impact that those higher taxes will wreak when they arrive, they’re already harming the U.S. economy today by forcing businesses to hold back investment for fear of what the future may hold for tax policy.

    A new survey shows that uncertainty in the tax code is in fact causing businesses to fret that future and sit on the sidelines. According to the tax firm Alvarez & Marsal Taxand, most chief financial officers rate eliminating uncertainty in the tax code as their top issue, as The Fiscal Times reports. “Confidence in knowing precisely what the tax code will require has become more important than how much it will cost them,” said Robert N. Lowe, chief executive officer of A&M Taxand. “As long as proposed changes remain up in the air, companies will be forced to continue to burn fuel operating in holding patterns rather than charting productive courses forward.

    Moving the country forward, creating jobs, and getting the economy going again should be goals America’s leaders pursue vigorously and vigilantly. And since Taxmageddon is standing in the way, it would make logical sense for the president and Congress to act now and give the country’s job creators the certainty they need to switch into high gear.

    But even with millions of Americans unemployed, dismal job creation, an increasing unemployment rate and Europe sliding into a deep recession, President Obama is silent on the issue of stopping the United States from heading over a fiscal cliff. Absent any leadership from the White House, House Speaker John Boehner (R-OH) has announced the House will vote in July to prevent tax rates from rising. The Senate should do likewise. There is time for Washington to take action, but that time is growing shorter with each passing day.

    Quick Hits:

    Posted in Economics [slideshow_deploy]

    41 Responses to Morning Bell: Unemployment Rises Again

    1. Victor Barney says:

      Duh! It's called the "fundamental transformation of government" into marxism, "Anti-Christ" by defintion, promised our nation's "gatherer's," or or women through their biology & our blacks through a combination of biology & HATE for the ANGLO-SAXON MAN! Next: Comes the two-witnesses of Revelation, chapter 11 this September 16, 2012 on the Israelite Feast of Trumpets(war)! No ladies, you will NOT LIKE THEM, AS YOU DO OBAMA! p.s. I'm not speaking of MOST ALL THE LADIES that read & write in these posts, which mostly are men anyway, but… Again, just saying…

      • stephen says:

        GOP witness to victory, NOT!
        See what the GOP has created.

      • ckmarti54 says:

        I heard about this on ABC's Good Morning America, I'm surprised they had the nerve to air this story. I guess they're not as liberal as CBS or NBC after all.

      • Juan Martinez says:

        Wow, Victor. I can't even think of a response to your posting. I am just speechless. Per your advice, I shall mark my calendar for 9/16/12.

      • Bobbie says:

        I don't recall the bible so descriptive. I believe the Lord will come regardless of rising against each other as the good will in most people have risen above that although we are seeing an uprise of the weakest of humanity with weapons and power…

    2. Don says:

      lets face it the man is trying with all his might to burst the working class..He Obama wants us to endup like Euorpe so he can enforce martial law and control everything..why do you think he has not spoken out against the wall street occupiers they are his fists on the ground..if you watch any WW2 documentary or film that deals with socialism in that period there are many similar things happening today in America….we as a people had better wake very soon or we America will be goose steppin,when government fears the people its democracy…when people fear government its tirany….the last 3 years and 6 months have been the most damaging years i can remember since Carter another genius….God please have mercy on our nation….

    3. Ian Bush says:

      The faux recovery is limping along with no substantive results. The FED and political hot air can't make the economy come out of its slump. The systemic and behavioural conditions are not conducive to the ministrations attempted. In fact, the government's actions defy all sound economic principles.

    4. Fedupaj says:

      As Obama fiddles, America sinks. Anyone that had any doubt that Obama is trying destroy the America we all knew should have that doubt removed now. Obama has divided the nation and generated hate between various factions of our society and done nothing to generate prosperity. Allowing the Bush tax cuts to expire is only going to hasten the destruction and increase government spending and rising debt. The only positive result of the bleak news of unemployment rising may be that it will help cause Obama to be a one term president.

      • stephen says:

        GOP what have you created?

        • Bobbie says:

          GOP what have you created? what's that suppose to mean when the country is losing her legs because democrats have no principle and are comfortable stealing money to support their unprincipled undisciplined, unethical work nobody deserves?

      • ckmarti54 says:

        I also heard that Obama is trying to force banks to take on the national debt. How backward is that!

    5. Karen says:

      Obama can't seem to push the US over the cliff fast enough

    6. Carol, AZ says:

      Mike: There are "no goals" to move this country forward. If both parties wanted a solution we would have a budget passed, and adhere to.
      Who else did you think Barry O and his home boys, would pass on, the 15 Trillion of debt created by a community organizer and his gang of liars ? No surprises on that point.
      You describe this as a "Deep recession in America?"
      The millions of unemployed across America will disagree. It's the second worse Depression in American history and spreading world-wide with a media black-out, reporting it accurately.
      It will take decades to turn around this shipwreck under the banner of" hope and change.".
      The new re-election slogans ..should read:
      "Vote for Barry O if you're a sadist. "

      • Rod says:

        For those like myself without work, It's a depression like no other, For those with jobs go ahead and stick your head in the sand ,YOUR NEXT!!

        • saveamerica says:

          Government interference probably lost your job, Rod! Just to remove that will bring jobs back!

    7. hatchetjack says:

      It is not strange to me. I believe it is exactly the outcome he seeks. At some point you have to examine what outcome a person seeks by the actions they take. It simply does not line up, to be anything else. We are discovering what it take to achieve "fundamental transformation." Seems like we tear it down from within and build it over into a government controlled economy.

    8. John C. Davidson says:

      In conjunction, are the SSDI increasing at the rapid rate this administration has encouraged. I am still seeing too many legal firms soliciting on the big screen for more to be added under suspicious circumstances.

    9. KC - NM says:

      This once great country is going straight down the crapper! We do not have appropriate leadership on either side of the aisle and a significant hole in the Whitehouse. The economy continues to be terrible, we have a court system that is out of touch with mainstream America (the Boston Appeals court against the real meaning of marriage), an ineffective education system, a broken defense system, voter fraud and the DOJ that supports this. I can go on and on. Yet, Obama is spending huge amounts of money on TV ads in the 9 key states for electoral votes. The lack of education and wisdom in this country will continue to tear it down. It is time for real caring Americans to wake up, get the facts, and vote this November to make a difference. The current "change" is not working!

    10. Mike Crome says:

      cloward pivens, google it if you don't know. obamao is following this script.

    11. Jaime Cancio says:

      Why is it that you agreeably repeat the figures provided by the government when you don't address all the manipulation and disallowed elements of the unemployed statistics. The actual unemployment rate is probably closer to 24 percent in the United States; and, the actual truth is so very easy to prove. By repeating only what the government reports you condone the lies. Where is the accurate reportage on the true unemployment figures; provide the truth and corner the government behind the lies they tell.

      • Pragmatic says:

        Close to 24%? 1 in 4 people you know are out of work? I don't think so.

        I will agree with you however that unemployment is way too high and that the percentage of workers who are underemployed is devastating, but the government is blatantly lying about it.

    12. worried says:

      After reading Dinesh D'Souza's book, The Roots of Obama's Rage", what the President does should not surprise many. This guy will say anything to get elected, but once in power is wielding his authority to weaken the USA which he views as responsible for the ills in this world. Remember this is not a guy who grew up in Arkansas, learning about America. He grew up in Hawaii shortly after it became a state and where many still felt slighted by the powerful business concerns that managed the statehood question. And then there is Indonesia, where he learned nothing about the history of the United States. This guy is a loose cannon and anything that weakens the USA is, in his opinion, not a bad thing.

    13. Leith N Wood says:

      Obama is doing exactly what he said he would do to our country. There is no excuse for putting him and his thugs back in office, if you love your country. Try living in Cuba, Russia or China, where there is no freedom. This is a war to save our beloved country and we have to win!

    14. Jeanne Stotler says:

      I am reading Klien's book "The Amateur" this is a very enlightning book into the person Obama really is and to what lengths he has gone to coverup what he really is and belives.He is avery dangerous person.

    15. Wally Kalbacken says:

      The trend I have been watching is the local Case Shiller price index for the Metro Atlanta area. What is going on there? There has been a precipitous drop in price level in the past 5 months, while the unemployment level there has been stable or declining slightly. Atlanta was never a high flier in terms of home prices, the availability of 360 degrees of expansion around the city led to a relatively muted peak around July 2007 of approximately 135. The index now is now around 85, which translates to a price level last seen in December of 1996.

    16. Lloyd Scallan says:

      Every month the numbers are "revised" or "adjusted" to the opposite of what the media reported when the reports first came out. Why? Because the Obama administration is making sure the truth about jobs and joblessness are not brought to the attention of the people . They "hope" most American will pay no attention to the deceptions this bunch is shoving down their throats.

    17. F.D O'Toole says:

      Why expect Obama to do the smart thing? Even his defenders won't discuss his prior qualifications for the most important job on earth. When he's off the teleprompter, we see a profound ignorance of the world around him. On economic matters he being advised academics to engage in even more "stimulus" (AKA pork barrel spending), which they tell him are simply "investments". These funds are either borrowed or printed and spent on green projects, or bailing out union pensions, or infrastructure projects like the railroad to nowhere in California. Somehow, someway, the funds wind up in the pockets of his friends and campaingn contributors. Not a bad result for the Big 0. A terrible result for the counrty.

    18. stephen says:

      Your readership has changed dramatically!

    19. Dee says:

      The more I see and hear of Obama and his regime the more I believe he studied Orwell's 1984 and the Left Behind series. If people have not read either they should. You don't have to read all the Left series to see that the point besides anti religion is a one government rule. Take away private industry and put it into government control and you have exactly what BO wants socialism boarding on Communism to actual Communism. Just look at his love of Castro, Chavez, Che and the rest of the leaders that spout this dogma. By the way I believe he wants to be the Supreme Leader

    20. Stirling says:

      This is what you get when Liberal Economic policies are in change of a Nation (rather then just individual states or local level). Just look at California as an example of the failure on a state level, and Detroit on a City level. When you bankrupt the private sector, government will at some point fail as a result.

    21. toledofan says:

      The sooner people understand that Obama is doing this by design or as a part of his socialization plan for America, the sooner he can be removed from office, in November, and we can start to process of remaking America. For quite some time it was hard for me to acceopt the fact that we would actually have a President trying to bring America to her knees, but, over the past three plus years, it's crystal clear what is going on. It's too bad the majority of people in America don't see the same thing. I mean honestly how can anyone actually say of think Obama is doing a good job?

    22. Vince Picarello says:

      We need to all join together to get Qbama & his adminstration out of office. Sign up to help this come about. http://www.oustobamacoalition.com

    23. Wayne Peterkin says:

      While the jobs numbers were certainly dismal, I have not yet heard how many more people left the workforce. In past months, unemployment rates were reduced by many no longer being counted. If that number was once again very bad, it would mean that the real unemployment rate increased even more than reported! Obama has countered the jobs report today with more platitudes about taking a long time to turn things around. Get ready for another "stimulus" proposal, confirming once again the definition of insanity. Obama has had four years of economic management and has failed miserably. The November election should be a "no contest", but sadly will not be.

    24. Trenchpress says:

      The Real Unemployment Rate: 22% – Not 8.1%, hyperinflation on track for 2014 http://trenchpress.com/?p=12406

      Romney's proven job approval rate was 36% when he left office, which sadly is worse than Obama's. His slight increase in jobs is due to so many leaving the state, and then calls it results. http://trenchpress.com/?p=12812

      Get ready for the storm.

    25. @MrBiggreg says:

      Obama stated in his run for president "You will see how I govern by the people I surround myself with"….I don't how to start, socialists, communists, Constitutional Deniers, and may I say tax cheats!

    26. F.D O'Toole says:

      Why expect Obama to do the smart thing? Even his defenders won't discuss his prior qualifications for the most important job on earth. When he's off the teleprompter, we see a profound ignorance of the world around him. On economic matters he is being advised by academics to engage in even more "stimulus" (AKA pork barrel spending), which they tell him are simply "investments". These funds are either borrowed or printed and spent on green projects, or bailing out union pensions, or infrastructure projects like the railroad to nowhere in California. Somehow, someway, the funds wind up in the pockets of his friends and campaign contributors. Not a bad result for the Big 0. A terrible result for the counrty.

    27. Gary says:

      With many American's seeing Obama for the Marxist he is, remember, "Marxists don't lose elections." Stalin said, "It is enough that the people THINK there was a fair election. The people who vote count for nothing. The people who COUNT the votes mean everything." Stalin. If you think SEIU and ACORN had power before, imagine how much more power "they" have after years of communist Czars, in charge.

    28. Curt Krehbiel says:

      "Through the expiration of existing tax policies and the imposition of new taxes, families and businesses will be hit with a $494 billion tax hike if Congress and the president don't take action to stop it."

      Don't expect any action. It's all part of the plan to destroy the economy so it can rise again under the new scheme.

    29. Blair Franconia, NH says:

      Obama promised that if Congress passed his stimulus plan, unemployment wouldn't go above 8%. He lied.

    30. Joseph McKennan says:

      69,000 jobs? Did MacDonalds open some new franchises? When I was in college one job I had was part time at a fast food restaurant. At about 18 hours per week I spent 1 hour of my shift making sure there were no cigarette butts in the drive through or parking lot. It was NOT really a job. I was not deemed shovel-ready because I didn't have my own shovel. (snicker)

    31. Oscar Manful says:

      Economic figures suggest promising job numbers for our fledgling commerce industry. CNN, CNBC, BBC, AL JAZEERA…..which we pick up out here in Ghana, or the East. The unemployment numbers are encouraging, a steady rise to calm fears. These statistics are likely to attract investment, tourism as well as even immigration policies. I humbly take this opportunity to congratulate everybody on their hard work and commitment to resolve the unemployment problem. Kudos.
      However, the piece mentions the Eur ozone crisis and matters pertaining there. To the best of my knowledge, job numbers are down over there. There is a recession in Spain, with banks left to borrow. Angela Merkel, Francois Hollande, Nicolas Sarkozy and Manuel Barroso of the EU outfit are all hard at work to prevent an all out crisis like a recession again. But, definitely there is a recession in Spain. A double-dip recession was forecast by experts, even classroom projections!
      The Obama administration now have this arduous task of promoting a sound economy in our home, America. So far it has worked commendably. Ben Bernanky and co. can do well. But economic indicators do not go there….it must be a well thought out and plotted strategy to ward of Europe.
      There in lies the solution to our problems.

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×