On Friday, the White House was putting a "happy face" on the latest jobs report. However, the stock market was not smiling. Most Americans were not smiling either!
It turns out that jobs were not really created at all.
Let's get more info from Joseph Lazzaro:
"An initial analysis of the 431,000 jobs total reveals a May jobs report that was a major disappointment.
Dismal might be a better word, as private sector hiring is still way too low. First, the economy added 431,000 jobs in May -- well below the 540,000 Bloomberg survey estimate.
Second, after excluding the 411,000 U.S. Census workers hired, private sector payrolls rose by a scant 41,000 (net of public sector losses other than Census jobs).
Third, the Labor Department lowered its estimate for jobs created in March to 208,000 from the previously released 230,000.
Economists were expecting an upward revision.
The government's estimate for jobs created in April remained the same at 290,000."
Let me translate: The Census Bureau is hiring people. However, the Census will eventually release these employees when the counting is gone.
Wouldn't it be nice if we did a Census every year rather every 10 years?
Why aren't US employers hiring workers? Shouldn't we see some signs that the recession is behind us?
Didn't Pres BO force through a US$ 787 billion "stimulus" plan in February '09?
What happened? Why is this recession lasting longer than most recessions do?
First, the so called "stimulus" was not a stimulus. It was nothing but a transfer of cash from taxpayers to state and local governments.
What happened to all of those bridges and updates to infrastructure that was supposed to happen across the country?
I have not seen any new bridges or roads built anywhere.
Second, we continue to see massive fear in the private sector.
Let me translate: Most employers are scared to death that Pres BO & Dems do not understand how jobs are created.
Most employers fear that BO & Dems are more interested in mandates than in encouraging job creation in the private sector.
The WSJ has a great editorial: Employers on Strike--Congress keeps giving business reasons not to hire
"Almost everything Congress has done in recent months has made private businesses less inclined to hire new workers.
ObamaCare imposes new taxes and mandates on private employers.
Even with record unemployment, Congress raised the minimum wage to $7.25, pricing more workers out of jobs.
The teen unemployment rate rose to 26.4% in May, and for those between the ages of 25 and 34 it rose to 10.5%.
These should be some of the first to be hired in an expansion because they are relatively cheap and have the potential for large productivity gains as they add skills.
The "jobs" bill that the House passed last week expands jobless insurance to 99 weeks, while raising taxes by $80 billion on small employers and U.S-based corporations.
On January 1, Congress is set to let taxes rise on capital gains, dividends and small businesses.
None of these are incentives to hire more Americans."
The bad news is that we have a governing class that does not understand how jobs are created.
Worse than that, Pres BO does not understand free markets or capitalism.
The good news is that the first Tuesday of November is coming fast. And it does not look good for BO & the Dems!
