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  • Morning Bell: Obama's Dismal Jobs Record

    The unemployment rate is now 8.1 percent, marking 43 months straight that it has stayed at 8 percent or above. At least 12.5 million Americans are out of work. Yet President Obama has been trying to convince people that he’s a job-creating President.

    Have 4.5 million new jobs been created under President Obama, as several speakers in Charlotte have claimed this week?

    A fact check shows that under President Obama, the U.S. economy has created a net 415,000 private-sector jobs—less than 0.2 percent of the 155 million-member American workforce. But even that statistic does not tell the full story, since the workforce itself has shrunk dramatically in size since Obama took office. Labor force participation is at 63.5 percent, its lowest level since 1981. In other words, a large chunk of Americans have simply given up looking for work. A significant number are collecting disability insurance instead, according to new research from Heritage’s James Sherk.

    In fact, the share of the adult population with jobs has remained flat for the past two years. The only reason the unemployment rate edged down slightly in August was that fewer people looked for work and thus no longer count as unemployed. The percentage of people participating in the labor force dropped by 0.2 percent—the same amount the unemployment rate dropped. As Sherk has explained, we are in the slowest recovery in 70 years, and job creation has not recovered since the recession began in 2007. (continues below chart)

    The economy is treading water and struggling for breath. This is exactly the wrong time to raise taxes. Yet with Taxmageddon bearing down on the economy, that is exactly what some members of Congress have proposed. This would be a terrible mistake.

    The Congressional Budget Office (CBO) reported recently that if Congress and the President do not act before the end of the year to prevent Taxmageddon, America will have another recession on its hands in the coming year. With 12.5 million Americans already out of work, imagine a fresh recession.

    Taxmageddon, scheduled to hit on January 1, 2013, will be the largest tax increase in American history. It’s a one-year, nearly $500 billion tax hike that will hit businesses, families, young people—its impact will be devastating. Heritage has calculated that a middle-class family of four will see their taxes go up by more than $4,100 just next year. [See how Taxmageddon will impact you.]

    If Congress and the President do not prevent Taxmageddon, the CBO said sluggish economic growth won’t be our problem next year. Instead, the U.S. economy will actually shrink. It will shrink by 0.5 percent, and the unemployment rate will spike to 9.1 percent.

    That will mean even more jobs lost. Heritage’s J.D. Foster explains:

    Forget percentages—what does this mean in actual jobs lost if President Obama and Congress fail to act? It means roughly 1.6 million more Americans will be out of work—on top of the 12.8 million who already want to work but can’t find jobs.

    A shrinking economy. More than a million jobs out the window. The country cannot afford this. The time for political speeches is over. It’s time for Congress and the President to do the one thing that matters most before the end of the year: preventing an economic catastrophe from happening on New Year’s Day.

    Quick Hits:

    • A new report from the Institute of Medicine says the U.S. health care system wastes $750 billion per year.
    • Israeli Prime Minister Benjamin Netanyahu apparently got into a “sharp confrontation” with the U.S. Ambassador to Israel in a recent meeting over the Obama Administration’s Iran policy.
    • In The Washington Post today, Heritage’s Robert Rector explains how President Obama has gutted welfare reform.
    • Ayn Rand’s ideas are coming again to theaters this fall. This week, the producers of Atlas Shrugged Part II released the movie’s official trailer.
    • This week, the U.S. national debt passed $16 trillion. What does this mean for the country? Join Heritage for an online chat today at noon ET and bring your questions.
    Posted in Ongoing Priorities [slideshow_deploy]

    21 Responses to Morning Bell: Obama's Dismal Jobs Record

    1. Norm Terry says:

      I agree, raising taxes isn't the answer. But cutting spending must be paramount. I don't mean cutting the rate of growth spending, but actually cutting the amount budgeted to agencies, say 2005 levels. This would also have to include every aspect of government, including defense.

    2. Jim says:

      Is anyone tired of the manufactured lies to keep the 45% of the morons in this country in the coolaid line. If you watch the 2008 speech redelivered by Obama last night, did you see the look in these robuts eyes?

      The real work of the Romney admin is going to be the "transformation" of these total transformed fools back into realtity on just what being an American is all about.

      The boy-pres needs another 20 years not 4 more years to complete his socialists tasks.

    3. toledofan says:

      What is just pathetic, sad and wrong is the misery this administration is causing to families across America because of their policies or the lack of any comprehnsive plan to get things back on track. The President talks about jobs but the words don't match the actions. He's done nothing to promote growth. Obama and Biden talk about the middle class, are these two that dumb to understand, they are the ones creating the problems. If there plan is to increase the lower class they are succeeding by leaps and bounds. The only way to fix the problem is for Obama and Biden to be fired.

    4. Frank says:

      You can criticize Obama all you want (& I criticize him a lot!), but the truth is BOTH Major Parties have basically bought into the lies of big government (Keynesian) economics & Central Banking with fiat money (paper money printed out of thin air & backed up by NOTHING). Only Ron Paul has been trying to audit/end the Federal Reserve, return to sound money (gold/silver), drastically shrink the size & scope of the Federal Government, balance the budget asap & end our out-of-control welfare/warfare/police state. Republicans like to talk superficially about these things, but don't live up to their talk. Romney/Ryan won't fix the problems and at most will just fiddle with things around the edges. Romney & Obama are both for big government in the end & neither will balance the budget, return to sound money, shrink the size & scope of government or end our corrupt Central Bank (the Federal Reserve). The US Dollar & world economy are headed for a collapse as our debt soars, confidence in the Dollar soon collapses & world markets are thrown into chaos when the Dollar ceases to be the world's reserve currency. Neither Romney nor Obama are willing to face up to those challenges and offer reasonable solutions.

    5. KC-NM says:

      I am sure Obama-Pelosi-Reid will talk about how the jobs report is so much better for August moving from 8.3 to 8.1. However, the general public will not hear about the almost 400,000 workers who have given up and left the job market. The denominator changed to drive the jobs number down. Yet, the 400,000 are now standing there waiting for Obama's big government to feed, house, and generally take care of them. We cannot afford this as a country. Time to wake up and get everyone out to vote early or in November against Obama and the Democrats.

    6. screpublican says:

      The Department of Labor is the MOST political department in the Federal Government. I do not trust the BLS to calculate politically-sanitary stats. Don't get excited about the new 8.1% unemployment rate; BLS is re-positioning Obama for November report of 7.8% or 7.9% just before the election. All they have to do is fiddle with the denominator and mess with the labor participation rate and BINGO…. Obama will hit below 8% just days before the election. Just drop more out of the labor market (even if they have to adjust it AFTER the election) with new Disability claims, fictional retirements of baby boomers (that is a quishy number anyway) or people giving-up looking for work. One way or the other DOL-BLS will fudge the data for the White House. It is my understanding from many Washington federal employees that everything is done according to White House wishes. Why have 36 czars otherwise?

    7. Conrad says:

      . 96,000 increase is the business survey. It is not used in the Calculation of the Unemployment percentage.

      The household survey is used in the Unemployment percentage.

      Why are we confusing the public with an illogical apple /oranges synergy?
      ~ Six hundred thousand people stopped looking for a job last month –now that's news.
      The household survey showed ~ one hundred thousand fewer employed. 100+600 = 700 lost jobs = truth.
      http://www.bls.gov/news.release/empsit.t01.htm = BLS Table A-1 fact sheet

    8. Guest says:

      This is nothing less than what we've come to expect from Heritage: deliberate misrepresentation of facts. Financial data is quite clear: the private sector has been creating jobs while the public sector has been shedding them. What's the GOP plan? Accelerate the shedding of public sector jobs, and pray to the heavens that the rich, who are already sitting on record levels of cash, decide to hire people out of sheer patriotism. I say that because they couldn't possibly be hiring people to deal with increased demand, because the GOP has no plan to simulate demand! And so it goes…

    9. Prasad says:

      I am glad that the unemployment rate is steady and not in a free fall even during the worst econmic situations !! Obama's team is only counting Jobs they created and not including that were lost ;)

    10. Brad says:

      It's pretty fraudulent to compare the recovery from Bush Recession to those of other more typical recessions since World War Two. The Bush tax cuts are hampering our economy, not helping. If cutting taxes actually worked to stimulate the economy, we'd be in better shape. Two wars without raising taxes to pay for them, one started under a fraudulent premise that there was still WMD in Iraq when W had to have known that there wasn't. Those of us in our 40s and 50s will be the rest of our lives recovering from the trainwreck that was the George W Bush administration and the Republican Party.

    11. J E Houser says:

      High taxes sends jobs outside of the USA. Rich people do not bury their money in their back yards. If they buy a yacht or a plane, that creates jobs. Raise taxes and they have to move their money outside to protect their wealth.

    12. Blair Franconia, NH says:

      Obama said that he inherited the worst economy since the Great Depression. That, too, was what Bill Clinton said back in 1992. Was it back then? Is it now? No, it wasn't then and it isn't now. The worst economy since the
      Great Depression? That would be the year I graduated from high school and entered college: 1980. In 1980,
      gas was $1.25 a gallon according to Lou Cannon's biography of Reagan. Inflation in 1980 was 13.5%, unemployment was at 10.2%, and the prime interest rate was at 29.5%. Reagan's first act as President? Signing the Kemp-Roth tax cuts into law. The same tax cuts that Jimmy Carter threatened to veto. Would Reagan be able to get Kemp-Roth, or equivalent tax cuts, through Congress today? I don't know. Maybe. He'd
      probably call Harry Reid into the Oval Office and then take him to the woodshed.

    13. Harvey Sietsema says:

      Funny that President Obama is running as a Job Creator — when in fact, he has greatly extended our economic problems through his policies and is thus a job destroyer.

    14. Ken says:

      Step 1. The House must pass legislation to halt all tax increases and send it to the Senate. Of course, we know Harry Reed will probably ignore the legislation. At that point, Republicans must make a lot of noise about it and they must find a way to begin impeachment proceedings against Reed and possibly others. The stalemate that exists between the two legislative bodies has got to stop!

      Step 2. Assuming Romney prevails in the election and Republicans gain control of both legislative chambers, the first thing they must do during the first week of the new session is to pass new legislation repealing all the tax hikes. Anything short of that is not acceptable.

    15. eugene miller says:

      This is why we need Romney /Ryan to stop Taxmageddon and Obamacare-the middle class can't afford it and Capitalism will be destroyed….The only problem, most people don't realize that this isn't an accident..But his agenda.

    16. Lloyd Scallan says:

      Obama and the Democrats lie as a matter of course, supported by the national media. They have no honor, or sense of honesty. Havn't you realized yet these people will do or say anything, use anyone or anything to deceive the American people to conplete the Obama agenda.

    17. Bobbie says:

      I think it's worse than we know. Having to research instead of upfront with the truth is bad enough coming from the extensive corruption of the white house. America does not deserve this. Obama doesn't like the American way and is unfit to preside over her! He didn't say what he wanted to get done (with whatever that is as we play dumb) would take longer than one term. All matters he refused appropriate advice on to clean up the disaster of democrats, this country is now struggling with.

      The only compromises the president initiates is on principle that no good man would ever do and a stronger man would honor (republicans) and we as Americans should pick up on immediately!

    18. Larry Mills says:

      OK, kids, it's graph-reading time. Economic events have a time lag. The house of cards built over a decade began to crash in 2008, and that trend didn't end until late 2009, when the Obama-era measures kicked in (not instantaneously, if you'll notice). If you're choosing a leader, you might want to ask yourself what part of that graph you want to be on – the soaring unemployment part created by the no-regulation high-rollers, or the slow come-down, created by the guys who corralled them in and made the hard choices. 5th-grade class dismissed. (Taxmaggeddon is for next class, and let's hope some Congresspeople attend.)

    19. Labor force participation rate lowest since 1981

    20. Oscar Manful says:

      The Obama Administration can be credited for managing the economy well. It did not spiral out of control. We can say that the economy stabilized with impressive job numbers……signalling a shift from the turbulent times of the recession. The early days of the recession as it were. Encouraging job numbers means a strong fiscal policy, planning and banking. In Europe, the Bank of France has announced a second recession. The bailout schemes have been merged with strong backing from the European Central Bank and even the IMF. A globalized economy as it were. Spain, Italy and Greece are likely to join.

      On the other hand a positive outlook and mental attitude can also go a long way to deal with the unemployment problems.

    21. Chip Frazier says:

      The mainstream media is gushing with praise about a "successful Democratic National Convention" and Romney's half hearted attempts to rebutt this effusion. Not one of them appears to be interested in unbiased reporting and presenting alternative views to the Obama campaign rhetoric. If you are as tired of this behavior as me read this article. You will agree there is painfully little to celebrate!

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