Unemployment 9.2%; only 18K jobs added in June
By JR Hoeft | Friday, July 8th, 2011 | PolicyThe U.S. Bureau of Labor Statistics released the June employment report and it remains bleak:
Nonfarm payroll employment was essentially unchanged in June (+18,000), and the unemployment rate was little changed at 9.2 percent….Employment in most major private-sector industries changed little over the month. Government employment continued to trend down.
Perhaps if there is any silver-lining is that government actually is getting smaller!
But you can sense the frustration growing from Majority Leader Eric Cantor whose House Republicans have been trying to pass job creating legislation and boost economic growth, only be stymied by the Obama administration and Democrats in Congress:
“Over the last two years, Democrats have hindered real economic growth by trying to spend and regulate their way to growth, but all that has resulted in is unemployment over 8.5 percent for 28 consecutive months, and a national debt over $14 trillion. Yet even as he is requesting a debt limit increase, President Obama nor his party have offered a concrete plan to manage down the debt, grow the economy or create jobs. And in an affront to basic economic sensibilities, they continue to insist on raising taxes on working families and small businesses who we are counting on to create jobs. Let me be clear, Republicans will not agree to tax increases. Period.”
No one wants a piss-poor economy. It’s a common pain shared by all. It’s time to stop playing politics and get real about what we need to do to end uncertainty, allow businesses to invest in their companies, and get America working again.
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About the author
Conservative to the core; liberal with his opinion! J.R. has been involved in politics for over a decade and has worked on several campaigns in Hampton Roads. He has served on the Executive Committee of the Republican Party of Chesapeake and the Central Committee of the Republican Party of Virginia. He is also the director of “Blogs United” in Virginia. E-mail J.R.. Follow J.R. on Twitter.
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10 Responses to "Unemployment 9.2%; only 18K jobs added in June"
The American people are starting to realize when it comes to creating jobs Obama doesn’t have a clue.If the Democrats were smart they would run ANY Democrat against Obama they might have a chance of keeping the White House but they won’t do it.Obama is doing a excellent job of making Jimmy Carter look good.
JR writes, “No one wants a piss-poor economy. It’s a common pain shared by all. It’s time to stop playing politics and get real about what we need to do to end uncertainty, allow businesses to invest in their companies, and get America working again.”
I think the answer here is fairly obvious. When the market is finally allowed to find a bottom, let’s say DOW 4500 for the sake of argument, then that will be the “all clear” signal for everyone to get back into the pool. If/when we get a number like that in the stock market or incredibly cheap prices in housing, that is when everyone, all at once, will say “it ain’t gonna get any worse”, and they’ll start committing money again. For now, the people with the money wait to see if the bargain price on offer today is going to be an even better bargain tomorrow. Everything contains its opposite.
Cantor can always be expected to capitalize on one iota of data, which of course, will be irrelevant next month. Fact is, this data reflects the spike in oil prices in the Spring, and while disturbing, is not a long term trend. The long term trend is accelerating private job growth that must counter the head wind created by all those fiscally responsible Governors who laid off state workers and caused Cities to lay off workers as well, thereby converting these folks to the unemployment line. Other economic news is actually quite reassuring that our economy is back on a sound footing, ready to spring forward, even with the challenges presented by disasters, oil disruptions, and unforeseen events. The big risk; default, which will put us back into recession, if not depression. Cantor, get back to work and increase the debt limit. Stop your political posturing and do what is right for us.
80% of the jobs in America are created by small business. Small businesses have been hit with many new regulations, especially from the EPA, and hidden taxes. How can they afford to hire more people? Obama and Congress should address this group by giving small business owners, tax relief and eliminate ridiculous regulations. If that is done, the economy will grow.
“Other economic news is actually quite reassuring that our economy is back on a sound footing, ready to spring forward”
According to the government, the recession has been over for years now. Yet earnings growth is non-existent along with job creation. The only thing keeping the market positive is all that paper the Fed feeds Wall Street. By the time the recovery is on sound footing, it will be time to spring forward over the recession cliff.
Here you go Mike, Just for you.
H. R. 2411
To provide for an employee election on Form W-4 to have amounts deducted and withheld from wages to be used to reduce the public debt.
Mike, you have never been to Southside Virginia. Recession is still going strong here.
This is not the time to blame the House majority for failing to create additional jobs…
Again, the discussion degrades to blame and not positive solutions. The Keynesian micro-economic approach, forty percent of the stimulus package, was effective in job creation staving off a depression; alternately, it does not, nor is it intended, to lead to sustainable job growth. As Lynne Uher pointed out, two-thirds of US employment resides in the private sector. Entrepreneurial incentives such as lowering corporate taxes and capital gains will result in developing “gazelles” like Apple and Google that would lead to double-digit job growth.
Understandably, this is not to be viewed as a tax cut, but a reallocation of revenue resources which may result in alternate tax increases.
Temporary is on to something, but hasn’t gone far enough. Capital has gone into hiding and will not come out until it is safe for it to do so. In order to start economic activity, the things that have caused capital to go into hiding must be addressed head on.
Why has capital gone into hiding?
1. Capital is scared to death of fraud. Fraudulent financial activities are being deliberately hidden in an effort to play happy music. Banks’ balance sheets are ridden with bad debts being carried at 100 cents on the dollar. Who knows when the rules will change (again) and honest accounting will once again be enforced? Why should I buy an asset at full price and try to put it back into play when, tomorrow, my competitors might be able to buy it at 30 cents, beat me on price, and put me out of business?
2. Capital is scared to death of the regulatory state. Investors pursue returns in China, for example, taking advantage of the regulatory arbitrage available to them through lax labor, environmental and business laws there, and sell their products in more developed markets that can afford them.
3. Capital is scared to death of taxes. Hong Kong’s corporate tax rate is 16%. Ours is 30%+. Why open a business here?
4. Capital is scared to death of currency destruction at the hands of the central banks. Capital seeks to move from this currency regime to the next by hiding in real assets like land, precious metals, or commodities.
These issues aren’t rocket science. Even a buffoon like Eric Cantor should be able to understand them. The problem is, he is completely unwilling to do what is necessary to address them.
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