President Obama and his pals might think it’s fun to crack jokes about spending nearly a trillion dollars on stimulus, only to lose 1.9 million jobs, but the employment situation in the United States is no laughing matter. According to CNS News, the number of Americans with jobs is down to 58.4%
The fraction of the population with a job has in fact fallen in the 28 months since Congress passed the stimulus – down from 60.3 percent in February 2009 to 58.4 percent in May 2011.
The economy cannot create jobs fast enough to keep pace with layoffs and recent high school and college graduates seeking employment. If the trend continues, as Summers notes may happen, the economy will suffer further in the future as college graduates delay entry into the labor force, reducing their lifetime productivity.
“Beyond the lack of jobs and incomes, an economy producing below its potential for a prolonged interval sacrifices its future,” argued Summers. “Huge numbers of new college graduates are moving back in with their parents this month because they have no job or means of support.”
As both Summers and the BLS data make clear, the economy is not creating new jobs fast enough to make up for layoffs and new graduates, calling into question Obama’s oft-repeated claim that the economy is recovering and creating jobs.
But Obama will continue blaming his predecessor for a systemic problem caused by liberal policies, while pushing for more regulations and bone-headed policies that will make things worse. His only hope at getting re-elected now is tanking the economy to such an extent that more Americans vote to keep their government benefits.