7.8% Unemployment Illustrates the Failure of Obamanomics

After remaining stubbornly above 8% for over 3 1/2 years, the nations unemployment rate finally dipped to 7.8% last month. 

 

President Obama hailed this milestone in his presidency to claim that the American economy is finally growing as a result of his policies that saved us from Great Depression II, starvation, locusts and famine.

 

Mr. President, with all due respect, we are no where near where we could have been at this point because of your failed economic theories.

 

To wit - you told us in 2009 that if your stimulus bill passed we would see strong economic growth and unemployment in the 5-6% range by now.  You borrowed $862,000,000,000 from China and other sources, spent the money on wind-energy companies, corporate subsidies, municipalities (for teachers and firefighters) and other Keynesian-inspired projects.  You told us that without this spending, if the government did nothing, unemployment would remain above 8%.

 

Nine months after your bill passed the unemployment rate was still 9.8%.  Three years and six months after your bill passed the unemployment rate was still above 8%.  That means if we had not spent the money, according to your projections, we would have ended up exactly where we are now, but without the massive debt my children and their children's children will be forced to pay for.

 

You told us that 'Cash for Clunkers' would be a huge boost to the economy.  Look at the analysis of this program.  All it did was encourage people to purchase cars earlier than they would have otherwise, while reducing the supply of functional used cars, which caused used car prices to rise for poorer people whom you claim to care about.

 

As a result of the lack of transparency created by Obamacare and your carbon-tax plans, businesses are refusing to hire new workers while they sort out how much they will owe in fines, taxes or rising health care premiums in the years to come.  Meanwhile, I have had my premiums increase by over $200 per month because your health law added burdensome regulations to insurance companies.  That is $200 less I have to spend in the economy you claim to be saving.

 

Since you took office, over 75,000 pages of new regulations have been added to the Federal Register.  Regulations now cost American families over $10,000 per year in higher prices - more than we pay in taxes.

 

You are telling us that in 2013 our income, dividend, capital gains and estate taxes will all rise.

 

Mr. President, to show joy that one month before the election our unemployment rate is now below 8%, while failing to mention that the underemployment rate is nearly 18% (when counting people who have simply left the labor force because they can't find a job, or who are sweeping the floors at a Burger King 17 hours per week because they cannot find a full-time job), is pathetic.

Last week, The Wall Street Journal ran an article that shows most economists expect another recession next year as a result of your tax plans.

Enjoy your 7.8% unemployment rate while you can, Mr. President, because it may be a long time before you see it that low again.