The employment rate is in devastating decline

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

√ Obamacare

√ 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.


  1. juwannadoright on February 20, 2012 at 10:30 pm

    I was priviliged to have had instruction from the late Milton Friedman. And if Dr. Friedman were alive today he would have said, “Dumb and stupid are still dumb and stupid.”

    • quinersdiner on February 21, 2012 at 6:24 am

      Dr. Friedman’s book (and TV series), Free to Choose, had quite an impact on me. His best line: “there is no free lunch.”

  2. Ferdinand Gaietto on November 26, 2012 at 10:26 am

    Unemployment rates these days are so high. we really need some economic bailout. ‘

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