Saturday, November 9, 2013

Unemployment & The Labor Participitation Rate

Normally, whenever the United States has experienced a Recession, with the right policies in place, we have typically recovered within 2 years.  Ronald Reagan inherited a Recession from the Jimmy Carter years.  Reagan cut taxes and regulations and created 20 million new jobs, which set the stage for years of prosperity until Bush I and Bill Clinton raised taxes.  By the time Bush II assumed the Presidency with the Dot Com Bust and even before 9/11, in 2001, the US was headed toward Recession because Bill Clinton and the Socialists that controlled Congress at the time raised taxes, as they always do once fully in power.  After 9/11, Bush II cut taxes and the Recession once again was short lived.

Socialist President Obama has made a mess of our economy, which has caused dismal GDP growth of 2% or less in the last several years.  While technically, we are out of Recession, we need 3% or higher GDP growth consistently to really grow jobs.  During the Reagan years, GDP growth was as high as 7% or more in some years.  While 6 million new jobs have been created in the last five years,  we would have had to grow 8 million new jobs in this time period to have a Labor Participation Rate equal to the number of people actually working when Bush II left office.   The unemployment rate just went up a bit from 7.2% to 7.3%; but what is really important is that we have the lowest Labor Participitation Rate in 35 years from when Jimmy Carter was President.   Only about 62% of Americans are actually working today because many have just given up looking for work altogether. Normally, that number would be 72% or higher. 

In actuality, when all our counted, the unemployed, the underemployed working part time that want full time work and those that have just given up looking for work altogether, our employment rate is still closer to 14% as about 15 million Americans fall into these categories.  In fact, about 8.2 million are working part time.  In end result is that older Americans, those 50 - 62 that can't find jobs and are not eligible for Social Security are finding reasons, whether real or not, to go on Disability.   That is the reason why the number on Disability since Obama was elected has gone up from about 8 million to about 10 million.  

And, since the economy is actually in terrible shape as a result of Obama's Executive Order regulations and tax, borrow and spend job killer policies, the poverty rate is also higher today than when Jimmy Carter was President.  This is the reason there are now 50 million people on Food Stamps, up 20 million since Obama was elected.  Welfare roles are also sky rocking.  And, ObamaCare is the icing on the cake that will kill even more jobs and or result in more part time jobs to avoid the need to provide health insurance.   

Card talk and numbers don't lie; but always remember Socialists will lie, cheat, borrow, extort and history teaches us even murder to stay in power feeding at the trough.  What we hear from Obama and his Socialist pals in Congress concerning the economy is all propaganda.  The economy is not really getting better.  Though the stock market is healthy because of cheap money and because big companies have laid off a ton of people and cut benefits, main street is in trouble.  And, the Middle Class and Blacks in particular have gone backwards under Obama.  Hard working people are far worse off today, than the first day Obama took office.  It is what it is.  Anyone who says otherwise is not telling the truth.  

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