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  • Morning Bell: Jobs, Unemployment Stuck

    Today’s jobs report is a broken record, with the unemployment rate stuck at 8.2 percent. The Department of Labor reports that only 80,000 jobs were added in June—consistent with other data revealing the economy has downshifted from slow to slower. This picture is starkly different from the economy President Obama promised of a strong recovery and millions of “saved or created” jobs a few years ago.

    In 2009, the President promised that his “recovery plan” composed almost entirely of government spending was the only way to stave off rising unemployment. The White House even drafted a chart showing projected unemployment with the economic stimulus plan and without it—to scare lawmakers into voting for it. According to their projections, by now, unemployment should be at 5.5 percent. Instead, of course, it’s 8.2 percent—and has been above 8 percent for 41 straight months.

    This jobs drought is the result of counterproductive policies, many of which could be reversed immediately. But in the meantime, employers aren’t hiring because they are suffering from prolonged uncertainty, as economists readily admit.

    “When we get an increase in general uncertainty, employers tend to postpone investment and hiring decisions,” Michael Gapen, senior U.S. economist with Barclays, told CNNMoney.

    That uncertainty, which is now made worse by the impending implementation of Obamacare, the economic meltdown in Europe, and slower growth in Asia, stems primarily from America’s date with Taxmageddon on January 1, 2013. The largest tax increase in U.S. history—$494 billion in one year—will hit on that day, as a host of tax cuts expire and new tax hikes (including some of Obamacare’s new taxes) take effect.

    Taxmageddon falls primarily on middle- and low-income Americans. Heritage research shows that families will see an average tax increase of $4,138. Visit the new Taxmageddon page to see the impact of these tax hikes on individuals. It includes an interactive map where you can click on your state to see what the average tax increase will be.

    Though it doesn’t officially hit until January 1, Taxmageddon is having a real effect on job creation right now. Small business owners cite taxes as their single greatest problem, even ahead of poor sales.

    “Companies and households won’t know what their tax liabilities are going to look like in 2013, what the regulatory or spending backdrop is. It’s going to be an uncertainty which weighs on people’s ability to make plans,” Julia Coronado, chief North America economist at BNP Paribas in New York, told Reuters.

    The President should be leading the country in the opposite direction—giving employers and individuals the assurance that these tax hikes will be prevented. Instead, in his 2013 budget submission, the President called for $2 trillion in tax increases, and he has showed no signs of saving Americans from Taxmageddon. Indeed, he’s been almost silent on the impending avalanche of taxes, except to endorse higher rates for investors and business owners.

    Last year, Congress prevented some tax increases just in the nick of time. The longer Congress waits to prevent Taxmageddon, the more uncertainty there will be for workers and businesses. This is an element of the economy that is actually in the complete control of American policymakers. They should act quickly to increase certainty and stability at a time when the economy greatly needs it. If the President will not lead, Congress should step up and show the public that at least one branch of government cares about creating jobs and growing the economy.

    Quick Hits

    Posted in Ongoing Priorities [slideshow_deploy]

    40 Responses to Morning Bell: Jobs, Unemployment Stuck

    1. glynnda says:

      The question here is: "Is he really trying to do this or is he just totally incompetent?" Well, with his claim of being a Harvard/Columbia grad, I'm thinking it's the former.

      I truly think his agenda is to undermine the economy and produce more dependence on government leading to a socialist society. We're going to have to go farther than just repealing laws, etc. in January when offices have changed over. We are going to have to have a serious review of the welfare system…..1. people who are dependent on the system must contribute something back unless they are completely unable to do anything i.e. physically/mentally incapable. Just about everyone can contribute something, answering phones, caring for children, filing papers, that an overpaid government worker does right now. 2. people who are dependent on the system should also be told what to do and how to live to the degree of dependence, i.e. receiving afdc, where to live, food stamps, what they can eat, help with child care, no more children, etc. This may sound harsh, however it will force people to rethink their tendency to stay on these government perks when in reality they have the ability to get free from them.

    2. Juan Martinez says:

      Well, I guess the original recovery plan didn't count on three years of republican senators and representatives doing everything they could to stifle an economic recovery, including nearly forcing the U.S. to default on its debt obligations in 2011. Very sad.

      • RogCol says:

        For example, Juan? Rolling over and playing dead or just accepting the overlooking of the Constitution. Thirty job bills passed by the House to die in the Senate, CONTROLLED by the Democrats.

      • Bob Ward says:

        Drinking the old government supplied "Kool-Aid" for some time now? I am assuming you are a legal citizen of our country like I am.

      • Peabody1911 says:

        Right on Juan!

        Government should hire more people taking up the slack created by those greedy businesses who refuse to hire people. Heck, the government should tax them until each business has doubled in size. We need to print more money for the government to spend which would boost the economy and ulimately surpass even China's output. We need to fire those pesdy Republicans for standing in the way of progress. Only then will we be free.

      • BitterClinger says:

        That's hilarious!! I have never seen a president (or his supporters) who has dodged responsibility for anything quite as skillfully as Mr. Obama. He has become only a caricature, a cartoon . . I look at Obama and see Elmer Fudd . . . "if not for those wascally weepublicans . ." So, let me get this straight . . the Dems spend all the money that our still unborn grandchildren might someday earn, and then blame the republicans for a credit downgrade when they try to force only a modest cut in our out of control spending. Okay, I get it now. Why didn't I understand that before?

        • Mary A says:

          Actually Oblamer reminds me of Mad Magazine's Alfred E. Newman, "What Me Worry" kid.

    3. Ken Jarvis says:

      And, WHAT has to the GOP done to create MORE Good?
      Nothing, not one Thing.
      They Block the Recovery, and then complain about it.
      Obama 2012, a Sure thing.
      LVKen7@Gmail.com

      • Robert A Hirschmann says:

        For one thing, when Obama was elected he had a democratic senate and house. He could have passed all kinds of decrees with no opposition. Now, since the republicans took over the house, he is getting all kinds of opposition and blaming the republicans for gutting his jobs programs. What's wrong with this picture??

      • Bobbie says:

        Mr. Jarvis, do you live your life without certainty? How about once with certainty now taken by the controls of government force? Why would you think it wise of people to spend their money on plans directly targeted by government Obama who's policies makes all things uncertain with costs and burdens unaffiliated with their businesses, unnecessarily challenging and at government leisure who've taken all matters unconstitutionally, showing government obama to be the stale mate, grid lock the economy suffers. His stimulus isn't worth the intent when it's proven no worth, with reckless handling that holds no accountabilities with failure to show anything close to Obama's claimed intent for his ridiculous stimulus! with obama in control, everything results to the contrary, transparently deliberate or he'd step aside and give Americans respect to let America work on her own, without this never before seen government obstructionism, the obvious hindrance to the free market, economic growth and job security.

      • Joseph McKennan says:

        Block the recovery? Recovery of what? the republic of the United States or the socialist states of america.

    4. Blair Franconia, NH says:

      Time to put Obama on the unemployment line. Would you hire him to be CEO of your company? I don't think so.

    5. RogCol says:

      Goold thing we had the stimulus or we would have exceeded 8% unemployment. Wait a minute, we did!

    6. Ray W. Hinkle says:

      I am always astounded by people who comment without facts to back them up. The President like other progressives, liberals or socialists do not believe that the individual is able to manage their own lives and thus need a superior intellect to rule them. This is a common theme by people who support the President and his policies. They do not look at facts and cannot assess these facts without a prejudice.
      We as a society must be able to critically assess the facts to be able to preserve our Republic and protect our children from the effects of an overbearing government. Free to choose is a responsibility of the individual, not the government.
      The job numbers are based upon people making choices about running their businesses. Many are concerned about over regulation, excessive government interference, and a overburden of taxation. This is why the economy is not doing o.k. Business owners are afraid to invest in plant and product. Government
      must get out of the way and stop promoting useless programs that do not promote business growth. After all this is root of the government's revenue. The government is not the economy, but it can promote sound reasonable policies to promote growth.
      The more effective number here in job growth analysis is the number of people participating in the work force which is approx. 63%. This is the worst job participation since President Carter. The numbers here in this article have been politically modulated (by all administrations) and should not be the only barometer.

      • Ray, your right, I would suggest we go back to the days where there were no food stamps or EBT card, you had to go to the food bank, they controlled what was available, ie eggs, milk, and many canned foods, if you wanted more then you would have to go fine a job!!!

    7. Jeanne Stotler says:

      I would like to ask all those who believe they are entitled to welfare, free medical, low cost housing, etc. Why should the rest of us work 40+hours a week, do witout so we can live within our means, while you do nothing but extend your hand. When the first colonies were founded, EVERY ABLE BODIED man, woman and child(over age of 7 yrs.) worked. They tilled the land, planted the crops, built houses, and protected what they had. Children pulled weeds, girls learned to sew, women made clothes and cooked. Remember there were no fans or AC, neither was there AC during WWII and we planted our food and canned in HOT<STEAMY kitchens. Anyone can attain what they want to, it takes determination. BY THE WAY: SOCIAL SECURITY IS NOT A HANDOUT, we had it taken out of our pay every week, no coice. The goverment litterally STOLE this money from us.

      • BitterClinger says:

        I agree with you wholeheartedly. Two years ago, I had to relocate. I lost over $100,000 of the value of my house because of the failed policies of democrats during the Clinton years who changed the way mortgage lenders took risks. I never made a late payment in my life, but my house had to be sold at foreclosure pricing because of all of the others in Atlanta who got loans and didn't deserve them. Nothing is free, in spite of the Democrats claims to be the givers of free stuff. I, and those like me, will continue to pay dearly for those votes the Dems are buying. I will never understand how people can claim to be compassionate when all they are doing is giving away other people's money. But I wouldn't expect a life-long Democrat to understand. 99 % of them are blind to facts.

        • Jeanne Stotler says:

          Oh yes! I remember my grandfather ranting abOut FDR and his "New deal" a life long Army officer and JAG he had taken a rank and pay cut, I don't recall the exact name, pay was restored in the late '50's, he died in 1942. I rememberthe Sunday Pearl Harbor was bombed, and all too well the hot steamy days of canning veggies. There was no welfare during the war, everyone worked tgether for peace, now we all need to pull togeher to return this country to what our ancestors fought for at Concord, Lexington, and Valley Forge, and again in 1812, stop this generation after generation of welfare, make schooling, and work the price for getting a check.

      • Joseph McKennan says:

        Right on. It is people like you who keep me from just turning the channel, page, or just putting my head in a hole and play ostrich. After the supreme court upheld obamacare I ALMOST gave up.
        When I was a child I pulled weeds. I was in 4H, I wanted to work and prove my worth. We had only one channel on tv and some days we didn't get good reception. WE lived REAL life. Computers were in the realm of science fiction and the internet was not even dreamed of.

    8. Frank says:

      "The longer Congress waits to prevent Taxmageddon, the more uncertainty there will be for workers and businesses." -A. P.

      True, but the problem is BOTH the D's & R's believe in big government & want re-election & won't do the "right things" really necessary: cut spending, balance the budget asap, shrink the size & scope of the Federal Government & turn this nation away from the big government welfare/warfare/Police state it's on. The fact that the GOP will nominate another big government R for POTUS is evidence there is no real desire in either major political party to do the things that are really needed.

    9. C. Popham Smith says:

      As we have reported before……any economist worth their degree would remind us all, that we need
      a minimum of 200,000 newly created private sector jobs every month for a sustained period of 5 years,
      before any degree of stability settles on the unemployment crisis.
      8.2% unemployed as we all know is biased propaganda. The real, true rate of unemployment is at
      a staggering 22%, yet Congress, the White House and the sychophantic MSM would have us
      believe otherwise. Be not decieved my fellow Americans. We are approaching the fiscal/financial cliff
      at a high speed, and all of Washington knows it.
      Good luck, America.

      • Pragmatic says:

        22%? 1 in 5 people working-aged people you know are out of work?

        • Jeanne Stotler says:

          I know 2 in my own family and about 5 oftheir friends, these are ones that don't count in the gov't. figures as they are contract painters and cannot get unemployment, for each of them there are about 10 more like them, I do day care and it'saffected as there are Mom's who are out of work, I don't caount in he figures either, yet I am down 1/2 of what I should be making, no jobs for Mom or Dad, no day care needed. No jobs cannot afford to get the house painted or the deck added, who needs a lawn care when they are not working, all of thee peple are hurting as well and not counted in that 8.2%.

        • Bobbie says:

          2 out of 4 here…
          50% Pragmatic!!!!!

    10. Robert A HIRSCHMANN says:

      It is clear that Obama must go. That is foregone conclusion to all thinking citizens. However, Romney is no prize to be cherished either. As always, it is the choice of the lesser of two evils. While I'm not thrilled with Romney I will vote for him. It is apparent to me that Obamas whole game plan, from start to finish, is to destroy this once great country of ours and declare himself dictator for life. Romney may be misguided but I'm sure he doesn't want to turn this republic into a third world country. I sure wish some miracle would happen and Ron Paul got the nomination. The next best thing would be for Ron to be chosen as vice-president. Time for the GOP to grow some backbone!

    11. Joseph McKennan says:

      I work for a government contractor. In any such workplace,15% of the employees do 80% of the work. I would bet that private sector employers are skeptical about hiring new employees based on this fact alone- in addition to excessive regulations….. The entitlement mentality will be very difficult to overcome because- "well on my last job I didn't have to do this much."
      One good thing- if you are one of the 15% you have job security

    12. Donald DaCosta says:

      Look for Obama and company to save this for an October surprise. The Dems will take full credit for "forcing" the "do nothing Congress" to act on behalf of the American people.

    13. Dr. Henry Sinopoli says:

      It's a good thing our intelligent electorate pays attention to the words, deeds and intentions of all our life-long politicians. This November a few of us will vote. Guess what? We will re-elect and return the blood sucking, revenue eating pigs to office.

      Don't blame Barry…he's doing what he was destined to do. Entitlements are part of his DNA…suck the system dry with his fellow Democrats and life-long Republicans…Take a break…join Boehner on the links…you're paying for it. Boehner's employed…he just don't act like it.

      • Bobbie says:

        what do you mean "don't blame Barry?" He took the position to be blamed, just like everybody does to George! I will blame Mr. Obama for disrespecting and defying the peoples constitution by abusing his position that allowed himself to intrude on our business. George didn't get in to have to give us daily updates regarding the economy because people were in control. George didn't say "this person proves they can do that and you don't have to prove a thing so I'll make sure the person at higher expectations feeds you without giving you the impression you have an expected standard to handle your own lifes' affairs…" paraphrasing. How do people take the insults? The costs of government are taking away independence so the whole country can be impressed the same! I don't trust a man that lies let alone the majority democratic party while under estimating every American by skin color. Why would anyone in America trust anything these illusion creators say when the disrespects of authoritarians of America are dissolving freedom into socialism amounting all costs, contentions and corruption on the people the authoritarians resent the most? What happened to the true American majority? Infiltration and indoctrination of the mind is what happened. All within the controls of government. Obama isn't going to make happen what Americans can or he would have ideas that work with integrity.

      • Joseph McKennan says:

        I am beginning to understand what yor tongue-in-cheek posts are saying. I agree. I just hope the politicians don't dream up a sarcasm tax.

    14. tspacer says:

      Why is it you use the number 8.2%, when the real unemployment number is 10% +

      • Dean says:

        Rush and Trump claim the ACTUAL numbers have been well north of twenty percent for some times.

        • Jeanne Stotler says:

          Read my post above and I'll agree the true number is about 22%, they only count those who CAN FILE for unemployment, how many don't qualify or who's benefits have run out not o mention those working any small job they can get. Many Americans are not making as muc as they id four years ago plus COL has gone up, look at groceries, now cost $250 for same things in 2008 that were $150. Thanks Obama, you created this mess not George Bush

    15. Casey Carlton says:

      Liberals really need to read the story of the goose and the golden egg. Then they need to study it. Finally, they need to have it explained to them in terms even they can understand.

      • Clearhead says:

        They also need to read the story of Humpty-Dumpty and how all of the kings horses and all the king's men couldn't put him together again after his shattering fall. (Some think that the 'king's men' actually pushed him off that wall.) What with the total incompetence of the 'king's men' on display, the HORSES (work horses, that is), would like to have another go at it this coming November. GIDDY YUP !!!

        • Bobbie says:

          you guys are hilarious! Clearhead, that was a clear headed, necessary consideration to add! thank you so much for the laughs!

    16. Mike Sheahen says:

      Oh the President should do this and Congress should do that…the beauty of such a tune or wishful thinking "pipe dream", as in the article "Unemployment stuck", is that not only can such pipe dreams be, and often are, either ignoring or in denial of certain realities in the real world, but they are by definition (quote) "a fantastic notion or vain hope" (@ thefreedictionary.com/pipe dream), and so are neither invariably known nor required to be made to come true or have any chance of coming true, especially when those in positions of authority (such as President and Congress) can and do prevent through their actions and inactions. Obama and his accomplices, willingly and by default, are making it painfully evident with their morally and fiscally bankrupting ways that the only way for us, our businesses, jobs, and economy to get "unstuck" is to get them out of power.

    17. Sterling says:

      Ken is one of those who believes that if a bill is named "economic recovery bill",that that must be what it is intended to do. The name is intended to, (1) guarantee that those ever referring to it call it by that misleading name, and, (2) assure that the Kens of the world, without examination of the bills content, doggedly support it just because. Get out of the cart Ken, and help us push it back up the hill from it's hell-slide
      Juan simply sees anyone resisting the efforts of power players holding that power by using the drug of dependency on the willfully lazy and/or spiteful, and paid for by those who are guilt-ed and taxed into a twisted form of charity, as people who are against him personally because he thinks he is getting over on others by being a taker!
      Liberals are comprised of two groups: Those who manipulate their way to power, and the useful idiots who allow themselves to be suckered into thinking that there really is such a thing as something for nothing.
      I'm constantly agog at the pittance that will purchase people, how they allow divisive others to direct their thinking and how willing to hate and distrust their fellows because polititions,a bane of society, tell them to.
      Those who cannot or will not think, are humbly disappointing specimens of what man can be.

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