NFPs Report Friday, Expect Misleading Obama Admin ‘Spin’
Friday, the US Labor Department will issue another mediocre NFPs (jobs report), private forecasters estimate 190,000 jobs were created in October well below the 260,000 averaged in Y 2014.
The Obama White House will tout the economy is doing well, the President will herald 61 months running of jobs creation, and liberal commentators like New York Times columnist and CNBC analyst John Harwood may offer this as more proof that the economy does better with a Democrat in the White House.
Much depends on the circumstances gripping our nation.
The best Apples to Apples comparison are the difficult and different conditions Presidents Ronald Reagan and Barack Hussein Obama inherited and how the fortunes of America’s families then progressed, with the former relying on conservative prescriptions and the latter on progressive/activist government to stimulate growth.
Mr. Obama confronted a terrible financial crisis and endured a punishing recession. Unemployment peaked at 10% in his 1st term, but since the economy has reclaimed and added 12.6-M jobs and employment is up 9.8%.
President Reagan also faced tough times; double-digit unemployment and 20 % interest rates and a bruising recession. Unemployment peaked at 10.8%, but subsequently the economy added more than 17.2-M jobs and employment rose 19.4%.
The reason President Reagan was able to create so many more jobs in a much smaller economy is quite simple. It was not just lower taxes and less spending but rather, a reliance on private decisions to guide recovery.
President Reagan cleared a Path for businesses, large and small, to invest as they deemed fit and raise wages as they decided they could afford, and encouraged the unemployed to get out and look for work.
Whereas, Mr, Obama, from subsidies for solar energy projects and mandatory health insurance to incessant preaching that ordinary folks are victims of racism, sexism and the evil machinations of the well-off, has sought to micromanage business through an explosion of regulations and to pacify a middle class under siege and Americans underemployed or not working at all with giveaways from free contraception to forgiving college debt.
Through the 1st 25 Quarters of Obama’s recovery, GDP growth has averaged an anemic 2.1%, during the comparable period for President Reagan, GDP advanced at a strong 4.6% annual pace.
And whereas President Reagan’s social safety net assisted the unemployed, Mr.Obama’s pays the unemployed not to work.
The 7-M men between the ages of 25 and 54 who are neither employed nor are looking for work are rewarded with food stamps, the earned income tax credit if their spouse is a low-income worker and federal healthcare subsidies, and even virtually free healthcare through Medicaid in many states.
For those on the dole and refusing to do anything productive with their lives, Mr. Obama is offering an even more attractive benefit in the form of free money in the form of a government pension.
Despite the fact that Americans are living healthier and longer lives and work is generally less physically challenging, the percentage of adults ages 16 to 64 certified as permanently incapable of working by the Social Security Disability Insurance program now stands at 5.1%, about 2X the figure in President Reagan’s day.
For hard working families, the results are predictable; annual family incomes have declined about $1650 during Mr. Obama years, whereas those increased $3900 during President Reagan’s time in office.
Mr. Obama’s heralding that the US economy is much improved and performs better with Democrats in control have a Big Brotherly dishonest tone.
Stay tuned…
HeffX-LTN
Paul Ebeling
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