Yesterday Romney talked about how Obama’s tax plan is destroying jobs: “Right now what America needs as much as anything else is more jobs.” During the debate Obama kept labeling him as the $5 Trillion tax cut guy refusing to listen to Romney’s explanation to the point where he referred to his five boys. Yesterday he continued: “What the president’s been saying, and the reality, are pretty far apart.” Last month the private sector added 114,000 jobs.
The reality of the nightmare has been staring us in the face for a long time, no creation of private sector jobs yet the unemployment does not rise, in fact it remains the same or decreases. The four week average is 375,000 for new jobless claims, there is no growth. Population is expanding and college grads… aren’t entering the work force, there is no place to go but back to home. It’s the participation rate, in this case the lack of, that is being ignored.
If the size of the work force decreases all of the ratios are altered. Let’s exaggerate to demonstrate. If a company reduces from 1,000 employees to 100, the addition of a new worker is a 1% increase. At 1,000 it’s insignificant. Obama is simply removing all of those who quit looking and playing with the ratios. I do not have the number which dropped out of the job market yet but 114,000 new jobs does not drop unemployment from 8.1 to 7.8.
The easiest way to explain everything without all of the past monthly numbers, jobs created, rolling averages, people dropping out…, is simply to compare employment numbers from 2008 to today. We know Obama’s beat the unemployment rate and we know there are more people in the population so those numbers should obvious be the proof, no spin, no lies, no explanation necessary.
We went to the BLS for employment numbers in November of 2008, the election month in which Obama was elected president. It states 144 Million had jobs, December the same. Today only 139 Million have jobs but take note of the drop in the unemployment. How few jobs will it take to bring it down below 7%?