Story here: Unemployment highest level in 26 years
‘Earth to Joe, Earth to Joe—You are not, I repeat, not cleared for landing. Reality runway closed.’
AP News report here, Biden tells us the stimulus is working wonderfully.
At the heart of President Barack Obama’s agenda for an economic turnaround is the $787 billion package he signed into law on Feb. 17. The effectiveness of the two-year program is a matter of sharp political debate; Biden, the administration’s point man on the issue, is aiming to show a restless public that results are tangible.
“Recovery act dollars are going farther and working harder than we anticipated,” Biden said in excerpts released in advance by his office. Biden is up against a wary audience when he says “the recovery act is doing more, faster, more efficiently and more effectively than we had hoped.”
A Gallup poll last month found 51 percent of Americans wished the government would have spent less to stimulate the economy. The same poll found 41 percent thought the stimulus package was helping the economy in the short term; 33 percent saw no effect, and 24 said it was making the economy worse.
Citing a scorecard, Biden says that over the past 100 days, using stimulus money, the administration has met its goals of paying for 135,000 education jobs and hiring or keeping 5,000 police. Other goals have been exceeded, he said, from the number of highway projects to new water systems to health centers.
Real unemployment rate is 16% says Fed official
The Other Side of the Story, from the Heritage Foundation, link here.
JOB CREATION NOT HAPPENING
Today, the Department of Labor reported that 570,000 Americans filed initial claims for jobless benefits last week. This follows news from ADP Employer Services on Wednesday that private employers cut 298,000 jobs last month. As bad as these numbers sound (and they are bad) the real threat facing our nation’s economy is that, as Gallup’s Chief Economist Dennis Jacobe puts it: “job creation in August is just not taking place in the U.S. economy.” Why is job creation more important than job loss numbers? Heritage fellow James Sherk explains:
The American economy is highly dynamic. Industries continually expand and contract while entrepreneurs create new companies and uncompetitive firms go out of business. Workers move between jobs frequently as this occurs. … Recent research shows that an increased likelihood of layoffs is not the main reason that unemployment rises during economic slumps. … The main reason unemployment rises during economic downturns is that job creation falls while the labor force continues to grow, making available jobs scarcer. As a result, many without work stay unemployed longer, driving up the unemployment rate.
If our economy is going to avoid double digit unemployment, the private sector is going to have to start hiring people again.
Unfortunately, every agenda item emanating from the White House is will only hamper, not allow for, private sector job growth.