By Tom Quiner
The media correctly focuses on the unemployment rate, which has remained high since the economic downturn four years ago. Obamanomics hasn’t been able to mitigate the job carnage. The unemployment rate was 7.8% when Mr. Obama was sworn in, and came in at 8.3% last month.
Mr. Obama is touting the progress in recent months which has seen the rate drop from 9% a year ago to today’s still high rate.
The unemployment rate doesn’t count people who have given up finding a job and have simply dropped out of the job market. When those folks are counted, some economists suggest the real unemployment rate is closer to 15% to 20%.
There is another way to size up the difficult economic situation we’re in, and that is the employment rate, or in other words, the percentage of Americans in the workforce. The chart above clearly reveals the erosion since Mr. Obama’s medicine was administered to the U.S. economy.
Let us recap the medicine:
√ The $1.2 Trillion Stimulus (not billion, that’s Trillion with a capital “T”)
√ Cash for clunkers
√ Dodd-Frank Wall Street Reform and Consumer Protection Act
The good news is the recession ended. The bad news: it’s a jobless recovery. Oh, and our credit was downgraded, which costs the taxpayers more interest on the national debt.
Contrast the limpid recovery under Obamanomics compared to the robust one under Reaganomics (see previous post: “Is Obamanomics better than Reaganomics?”).
Mr. Obama needs to wake up. His way doesn’t work.
Simply look at the chart above.