Tags: paul krugman | jobs | republicans | obama

Krugman: GOP Doesn't Credit Obama for Jobs 'Boom'

Krugman: GOP Doesn't Credit Obama for Jobs 'Boom'
(AP)

By    |   Monday, 11 January 2016 10:46 PM


Nobel laureate economist Paul Krugman contends that conservatives have been wrong for criticizing President Barack Obama’s policies as “job-killing” when in fact the government claims 14 million jobs have been created in the past six years.

“Private-sector employment hit its low point in February 2010. Since then we’ve gained 14 million jobs, a figure that startled even me, roughly double the number of jobs added during the supposed Bush boom before it turned into the Great Recession. If that was a boom, this expansion, capped by last month’s really good report, outbooms it by a wide margin,” he wrote for The New York Times.

Nonfarm payrolls increased by 292,000 last month, the Labor Department said on Friday. The unemployment rate held steady at a 7-1/2-year low of 5 percent even as more people entered the labor force, a sign of confidence in the job market.

“Does President Obama deserve credit for these gains? No. In general, presidents and their policies matter much less for the economy’s performance than most people imagine. Times of crisis are an exception, and the Obama stimulus plan enacted in 2009 made a big positive difference. But that stimulus faded out fast after 2010, and has very little to do with the economy’s current situation,” he said.

“Politicians and pundits, especially on the right, constantly insist that presidential policies matter a lot. And Mr. Obama, in particular, has been attacked at every stage of his presidency for policies that his critics allege are “job-killing” — the former House speaker, John Boehner, once used the phrase seven times in less than 14 minutes. So the fact that the Obama job record is as good as it is tells you something about the validity of those attacks,” he said.

“For example, there’s no evidence that Obamacare led to a shift from full-time to part-time work, and no evidence that the expansion of Medicaid led to large reductions in labor supply,” he said. “So what do we learn from this impressive failure to fail? That the conservative economic orthodoxy dominating the Republican Party is very, very wrong.”

“Conservative orthodoxy has a curiously inconsistent view of the abilities and motivations of corporations and wealthy individuals — I mean, job creators,” he said.

“[O]n one side, this elite is presumed to be a bunch of economic superheroes, able to deliver universal prosperity by summoning the magic of the marketplace. On the other side, they’re depicted as incredibly sensitive flowers who wilt in the face of adversity — raise their taxes a bit, subject them to a few regulations, or for that matter hurt their feelings in a speech or two, and they’ll stop creating jobs and go sulk in their tents, or more likely their mansions…”

However, Newsmax Finance Insider David Stockman warns that the government flat out lies about the monthly employment numbers.

“According to the BLS, the U.S. economy generated a minuscule 11,000 jobs in the month of December,” Stockman wrote.

“Yet notwithstanding the fact that almost nobody works outside any more, the BLS fiction writers added 281,000 to their headline number to cover the “seasonal adjustment.”

The New York’s Post John Crudele also agrees that only 11,000 new jobs were created last month and gives detailed instructions on how to find the data on the BLS web site.

“Now there is nothing sinister about seasonal adjustments. They are used throughout the economics world. Adjustments help smooth out the steep declines of July, when some education jobs end and auto plants shut down, and the declines of January, when many temporary holiday jobs end,” he said. “But seasonal adjustments also mask the true reality — that 2015 ended pretty normally and not with a bang.”

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Economy
Nobel laureate economist Paul Krugman contends that conservatives have been wrong for criticizing President Barack Obama's policies as "job-killing" when in fact the government claims 14 million jobs have been created in the past six years.
paul krugman, jobs, republicans, obama
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2016-46-11
Monday, 11 January 2016 10:46 PM
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