Friday, February 5, 2010

9.7% Unemployment - Not So Fast

The Obama Labor Department massaged the numbers to tell us that the unemployment rate fell from 10.% to 9.7% in the month of January, even though 20,000 more jobs were lost. What is lost in the translation is that 1.1 million unemployed Americans just gave up looking for jobs altogether so they don't count any more. They are in the 17% or more real unemployment rate, which includes the under employed, working part time and those still collecting unemployment benefits. And, the unemployment rate is down a bit because thousand of Americans are being hired in low paying temporary jobs to conduct the US Census; but those jobs will go away later this year. This number compares with 734,000 Americans who gave up looking for work in January, 2009. Since the start of the recession in December, 2007, 8.4 million jobs have been lost. Remember, Obama was elected President in November of 2008 and took office in January of 2009. 7,000,000 of those lost jobs happened in the first year of the Obama Presidency, which is both sad, incredible and would never have occurred with the right policies in place.

President Obama, who continues to blame George W Bush for anything and everything, bought the store and now he must manage it. The Labor Department now acknowledges that job losses in 2009 were actually 600,000 greater than previously reported. This very high unemployment rate happened under Obama's watch and it is about time that Obama steps up to the plate and acknowledges that the buck stops at his desk and with his Administration. What little growth we have seen in the economy, that has not really resulted in job growth, has come because of monetary policy not Obama's SwindleUS Plan, which is fiscal policy. In other words, the FEDS have kept interest rates very low and have pumped billions into the economy in cheap money, which is what is driving the economy. Obama's $787 Billion SwindleUS I Plan has little to do with any growth that has occurred so far. Matter of fact, it is probably the failure to reduce taxes further, in order to fund all of Obama's wasteful pork barrel projects, which has retarded the private sector delaying economic recovery and jobs growth.

As someone who works in business with major corporations, I can describe what is really happening in our economy. We have finally achieved higher productivity because of technology. The fact is that it takes fewer people to get the job done. Off shoring of various jobs to places like India and China with much lower wages, have been driven overseas by high US taxes, frivolous lawsuits, unreasonable employment laws and big unions. Those jobs are not coming back any time soon. Democrat Socialist policies have destroyed many back office and manufacturing jobs in the United States. It really is that simple.

The solutions are simple too. Creating jobs in the United States does not require a SwindleUS II Plan. In fact, the $100 Billion Jobs Bill proposed by Obama will be a complete waste of money. To create jobs in the US, Corporate income taxes, among the highest in the world, must be cut from 35% to 25% to compete with other countries and keep more jobs in the US. There must be laws that limit frivolous lawsuits and employment laws that add to the cost of doing business. No one is advocating sweat shops; but business needs more flexibility related to exempt, non-exempt and independent contractor job status. State and Federal government must make it easier to do business in the United States, rather than harder which has been happening for year. In the end, it is impossible to achieve job growth unless we see at least 300,000 new jobs created every month. That will not happen as long as President Obama and the Democrat Socialists that control Congress continue to push for higher taxes and more regulations. If Democrat Socialists are allowed to enact all their Socialist Schemes, we will see high unemployment and misery for years to come. This is just Economics 101.

Finally, we need to develop our energy sector by allowing for the expansion of all current sources of energy including nuclear, natural gas, clean coal and oil drilling within the Unites States as a bridge to future technologies that are not feasible today. We certainly do not need higher taxes on energy that will come from Obama's CAP & TAX Plan. In doing so, millions of jobs would be created that cannot be off shored. In other words, we need a pro-growth President who believes in free market capitalism, not one who wages war against the private sector as is happening by President Obama.

We must elect Conservatives in 2010 and 2012, who are committed to balancing the federal budget, limited government, free market capitalism, a strong national defense, the sanctity of life and family values. That is clearly not the Democrat Socialists that control Congress and President Obama, which is the reason we must sweep the Socialists out of office and make Obama a one term President. We can do it. We must do it to save our country.

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