Tags: jobs | Obama | unemployment | graduate

Jobs Numbers Tank as Obama's Policies Fail

Jobs Numbers Tank as Obama's Policies Fail
(Ed Zurga/EPA/Landov)

By    |   Friday, 05 September 2014 09:40 AM

The economy created only 142,000 jobs in August, down from 212,000 in July, indicating the economy significantly slowed this summer.

Jobs creation is well below the pace needed to re-employ all the workers displaced during the financial crisis — the economy is in crisis!

Although official GDP estimates indicate the economy expanded in the second quarter at a torrid pace — 4.2. percent — much of that was inventory build, as consumer spending continued to drag along at a nonplus pace and capital investment, especially in manufacturing, remained subpar.

Vote Now: Do You Approve Or Disapprove of President Obama's Job Performance?

Third-quarter growth is likely in the range of 2 percent, and the Obama administration spin doctors will have a tough time selling these jobs data as anything but bad news.

Simply, the administration's big spending stimulus policies and the Federal Reserve's obsession with pumping money into a moribund New York financial industry have failed.

Also, now Americans are seeing the real cost of the Obamacare healthcare subsidies. Employer mandates are not much good to working families if no one in the family is working.

The official jobless rate is down to 6.1 percent, but real unemployment is closer to 18 percent, because so many prime-aged adults are sitting out the party. For example, one in six adult males between the ages of 25 and 54 has no job, and may have simply quit looking thanks to "compassionate" government policies that reward able-bodied men and women to sit at home and watch ESPN NFL reruns or The View.

Since 2000, Congress has beefed up the earned income tax credit and expanded programs that provide direct benefits to low- and middle-income workers, such as Obamacare and Medicaid, food stamps and rent and mortgage assistance.

Those buy votes but do little to encourage work.

Benefits phase down as family incomes rise, and often tax additional income as much as 50 percent. Consequently, government benefits penalize work and encourage one partner in two-adult households to be idle.

Also, those programs offer incentives for single people to work only part time and contribute to skills shortage.

With millions of young college graduates unable to land a professional job and start a career, the president has implemented irresponsible federal student loan policies. And unscrupulous university presidents exploit young people by peddling graduate programs that promise rewarding careers but only deliver a lifetime of debt.

Student loans take disgruntled college graduates off the streets, lower the official unemployment rate and deliver electoral majorities for Democrats but undermine future growth. Simply, too many folks in their late 20s are stuck in dead-end jobs, burdened with crippling debt and unable to buy a home or comfortably start families.

The root cause of the jobs crisis is chronically anemic growth, whose sources candidate Obama promised to address in 2008 but has forgotten.

These include the purposefully undervalued Chinese and Japanese currencies, which cheapen imports, siphon off demand for American-made products and destroy factory jobs; federal restrictions on offshore oil and gas development, which unnecessarily perpetuate U.S. oil imports and finance terrorism; business regulations more burdensome than necessary to accomplish worthy objectives, which create prestigious jobs for political supporters and create monopolies for campaign contributors; and a tax structure ranked one of the worst in the world for encouraging sound business decisions and supporting international competitiveness.

A second-term president should be a statesman looking to the long-term security and prosperity of the American people.

Alert: IRS Insider Reveals How to Save as Much as $355,000

Instead, Obama continues to campaign and blame his predecessor and Congress for his disappointments. He will leave Americans poorer and less safe in the bargain.

© 2021 Newsmax Finance. All rights reserved.


   
1Like our page
2Share
Finance
The economy created only 142,000 jobs in August, down from 212,000 in July, indicating the economy significantly slowed this summer.
jobs, Obama, unemployment, graduate
607
2014-40-05
Friday, 05 September 2014 09:40 AM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved