Lord Crimson

Wisdom from the Realm

Obama Has Lost 4 Million Jobs

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After one full year in office, the results of Barack Obama’s jobs stimulus program are finally in. In the 12-month period starting with February 2009 through January 2010, the nation saw a net loss of 4.022 million jobs, according to the latest figures released by the Bureau of Labor Statistics (www.bls.gov). The unemployment rate stands at 9.7%, a full 2% higher than it was when Obama took office. And the only solution that Obama seems to have is to throw another $100 billion into another failed jobs stimulus package.

He still finds himself in the catch-22 of defending the results of the previous stimulus package and yet professing the urgent need for a second one. The American people were fooled by the rhetoric last year. It is increasingly evident that they will not be fooled again.

Given the results of recent elections in Virginia, New Jersey and Massachusetts, it certainly appears that they are no longer supportive of the Democrats’ policy proposals.

Obama and others in his administration still claim that his policies are working as intended and that they have saved or created anywhere from 600,000 to 2 million jobs (depending on what day it is and who is speaking). So if that is true then the true job losses would have to be from 4.6 million to 6 million in order to net out at the 4 million job loss figured provided by the BLS. If that is an example of his policies working as intended then it is really no wonder why the American people have started electing candidates who do not support those policies.

There are no easy answers to the question of how to create more jobs, but clearly throwing more money at the problem has not worked for Obama, just as it did not work for Bush. One thing that is very clear though is that employers are worried about what more is to come from this administration. Fearing a federal mandate to provide health coverage for all employees or face still fines and penalties for failing to do so is certainly a deterrent for some companies to hire more employees. Fearing huge increases in energy bills is another. And fearing increased interest costs and inflation due to a ballooning national debt is still another.

Those fears are justified given the reckless healthcare reform package, cost-increasing cap-and-trade bill and deficit-ballooning budget which have been proposed by Obama and his fellow Democrats. Reducing those fears will be the best way to increase jobs. For employers, the decision to hire new employees is always a long-term one, but before making that decision there must be a high level of predictability about the future.

With so many disastrous policy proposals on the horizon, employers cannot make any solid long-term plans, including those regarding hiring new employees. By now Obama and the Democrats should have learned that lesson, but given their recent statements and actions, clearly they have not. As a result, the near-term outlook for jobs looks just as bleak as the near-term past.

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Written by Lord Crimson

February 7, 2010 at 2:45 pm

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