Obama Kills Jobs and Resuscitates the Great Socialist Recession
Obama’s socialist viewpoint, his servitude to labor unions, and his academic economic advisers with their belief in Keynesian economic theory, led him and the Democrats down a very wrongheaded path. America is in misery because of this wrongheaded understanding of the economy and business by our ever more controlling central planners in Washington.
By Charles R. Anderson
Let us start off with a chart showing the number of jobs missing from our economy since January 2000 in thousands of jobs. The number of missing jobs in January 2000 was equal to the number of unemployed people then who were looking for jobs or in some cases were simply taking some time off between jobs. Jobs were plentiful then and had been for several years, so unemployment was only 4.0%. Because of the boom and bust nature of the economy since then due to the Federal Reserve setting very low interest rates, the deficits run by our governments, increasing regulations and taxes, added energy costs due to drilling prohibitions, recent added uncertainty caused by ObamaCare and Dodd-Frank financial reform, and considerable class warfare and anti-business rhetoric, the number of missing jobs has increased greatly in the course of the last 11 years.
The number of missing jobs is calculated assuming that the same percentage of Americans would work today as did in January 2000 if good jobs were available. The high tech bubble that burst in 2001 and 2002 had already created a situation with about 5 million more missing jobs than we had had at the beginning of the century. In December 2007, the United States had not yet been much affected by the recession due to a sharp increase in the price of oil that was already hurting most other countries of the world. But in 2008, companies began laying off employees and stopped hiring new employees. This never-ending Great Socialist Recession was underway.
Since Obama occupied the White House, there has been no substantial or sustained return to normalcy. The number of missing jobs for the last four months has been almost constant. There was actually a small increase in the number of missing jobs in August, though the statistics are not really good enough to consider that a real effect. What is real is that over the long term now, there has been no improvement. This is not surprising since almost every action the Federal Government and the Federal Reserve have taken was effective in killing jobs, not in creating them. Jobs are conserved in big businesses and many, many jobs are created by small businesses when the government does little to hurt their businesses. The Federal Government and many state governments have worked very hard to create very tough business conditions and much uncertainty when American business already faced a world largely in recession and stiff competition from abroad.
Obama’s socialist viewpoint, his servitude to labor unions, and his academic economic advisers with their belief in Keynesian economic theory, led him and the Democrats down a very wrongheaded path. America is in misery because of this wrongheaded understanding of the economy and business by our ever more controlling central planners in Washington. The private sector and Capitalist free market can do much better.
Posted by Charles R. Anderson, Ph.D. at Wednesday, September 07, 2011
Charles R. Anderson is a materials physicist, a benevolent and tolerant Objectivist, a husband and a father, the owner of a materials characterization laboratory, and above all a thinking individualist. The critical battle of our day is the conflict between the individual and the state. We must be ever vigilant and constant defenders of the equal sovereign rights of the individual to life, liberty, property, and the personal pursuit of happiness. He blogs at An Objective Individualist
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