Wasserman Schultz Denies Unemployment Went Up Under Obama

Debbie Wasserman Schultz is the gift that keeps on giving. As Ed Morrissey pointed out, today on Fox, she denies that unemployment went up under Obama.

No, really:

Morrissey points to these facts Gretchen Carlson spoke of:

  • Jobless rate in January 2009: 7.8%. Jobless rate in November 2011: 8.6%.
  • Number of employed in January 2009, in thousands: 133,563. In November 2011: 131,708
  • Civilian participation rate in January 2009: 65.7%. In November 2011: 64.0%
  • Unemployment level in January 2009, in thousands: 11,984. In November 2011: 13,303
  • Number of people not in labor force, January 2009, in thousands: 80,554. In November 2011: 86,558

As John Adams said, facts are stubborn things.

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Unexpected: Unemployment Only Drops .1%, Still No Unicorns

The unemployment news surprised some people, who were expecting who knows what, since everything that happens under Obamanomics is “unexpected.”

The jobless rate unexpectedly fell in October while employers added fewer jobs than forecast, illustrating the “frustratingly slow” progress cited by Federal Reserve Chairman Ben S. Bernanke this week.

The unemployment rate fell to a six-month low of 9 percent from 9.1 percent, even as the labor force expanded. The 80,000 increase in payrolls followed gains in the prior two months that were revised up by 102,000, Labor Department figures showed today in Washington.

I guess we should feel relieved.

No really, former Speaker of the House Nancy Pelosi says if we hadn’t passed the Stimulus bill, unemployment would be at 15%.

What does she base that on? She’s Nancy Pelosi. That’s proof enough for some.

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AIM Video: OCCUPY DC vs. Employment Offers (“we can’t do that”)

From Accuracy in Media’s Benjamin Johnson:

After more than a month of protest demands for better employment opportunities and benefits, Accuracy in Media saw fit to test their desires with…employment applications. Our “headhunters” were treated to every excuse as to why these jobs aren’t good enough for them. We guess middle management opportunities with healthcare and 401k benefits aren’t desirable anymore.

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AIM: Reuters’ “Optimism” Not Clearly Justified

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From Accuracy in Media‘s Michael Watson:

Reuters headlined an article on employment among recent college graduates, “Optimism creeps into jobs market for college grads.” The lead is a heartwarming anecdote about a mom whose son with an economics degree found a job after changing from a sports management major.

The article, by David Morgan, reports that “America’s employment picture has begun to look brighter for new college graduates in a small number of fields,” citing work by a Michigan State University think tank. The fields Reuters cites as having positive employment outlooks are “accounting, finance, economics, marketing, human resources and information technology.”

Reuters notes that the situation since the financial crisis has been a “deep employment hole” and that “the recession and economic uncertainty…continues to stifle any concrete sign of a broader jobs [sic] market recovery.” Reuters also reports that the MSU think tank found that a bachelor’s degree is on average worth almost $10,000 in starting annual salary less than it was worth in 2008. Independent career counselor Dan King is quoted saying that “organizations are still tentative about hiring.”

Additionally, Reuters quotes Nobel Prize-winning economist Peter Diamond as saying that “it is very costly for young people to have trouble getting started on their careers.”

The article states that “ballooning government deficits have since foisted higher tuitions and shrinking levels of financial aid onto state colleges and universities.”

It closes with quotes from James Engell, a professor of English at Harvard University. He warns that dropouts caused by rising college costs are “[reinforcing] the widening income gap in the United States” and “[portending] a society which is less democratic.”

Reuters offers no prescriptions for the rising tuition costs, and only notes falling government support as a cause, though that is but one of many. What seems clear is that the “optimism” that Reuters headlined is at best only “creep[ing]” into a 20-24 year old age cohort that the Bureau of Labor Statistics reports faces a 15.2% unemployment rate.

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AIM: Still Looking for “Green Jobs”

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From Accuracy in Media‘s Michael Watson:

While researchers at King Juan Carlos University in Spain found in 2009 that the Spanish “green jobs” program killed over two jobs for every one it created, Politico notes that “the White House can’t point to much solid evidence” that green jobs are being created. Politico states that “Obama’s Council of Economic Advisers suggests 225,000 clean energy jobs were either created or preserved,” but does not acknowledge the follow-on effects identified by the Spanish study.

Politico, which deserves some credit for its open skepticism of Obama administration claims, reports that “White House officials say asking about the connection between the 9.1 percent unemployment rate and the administration’s green jobs campaign is the wrong question.” Instead of looking at macroeconomic effects of policy, Politico notes that the officials would rather show off the “exponential growth” in highly subsidized “clean technology industries.”

The Politico quotes “top Republican” Sen. Lisa Murkowski (R-AK) as “not seeing [green jobs].” Murkowski said, “I don’t know” when speculating on whether it was premature to judge.

Politico notes that “Obama pledged…5 million green collar workers” and that “he’s spent considerable time since entering the White House trying to make that happen.” Politico reports that “Democrats say…incentives have petered out” and that “they’re not all that optimistic about new funding opportunities.” Perhaps given the Spanish experience, Americans should be optimistic that Democrats aren’t optimistic about the future of the program. By the way, one Republican who the Politico did not consult goes further than the two it does—Sens. Murkowski (R-AK) and John McCain, (R-AZ)—in pointing out the dangers of the Green Jobs program.

“A major example of this dilemma occurred in Newton, Iowa, where President Obama visited on Earth Day to tout green jobs at a new wind turbine plant,” Sens. James Inhofe (R-OK), and Kit Bond (R-MO), reported on April 27, 2009. “During the visit, the President noted that new green jobs replaced manufacturing jobs where a Maytag plant closed.”

“However, he did not mention that only 700 jobs paying $13 per hour replaced the 1,800 jobs paying $20 an hour plus health care.” Sens. Inhofe and Bond both serve on the U.S. Senate Environment and Public Works Committee.

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AIM: The New York Times Praises Unions Once Again

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From Accuracy in Media‘s Allie Duzett:

As Accuracy in Media has documented, The New York Times has a strong history of defending unions and union bosses. An article published on April 12, 2011, followed this Times tradition by glorifying union boss Gerald W. McEntee, leader of the American Federation of State, County and Municipal Employees (AFSCME). The Times simultaneously used selective quotation throughout the article to denigrate Republican efforts to curb spending.

Featured in the Business section of The Times, the article, “Gerald McEntee Energized by Anti-Union Movement,” makes boss McEntee out to be a hero. This is done through word choice and careful use of phrasing throughout the article.

The word choice in the article, while subtle, definitely advances a pro-union and pro-McEntee agenda. “Public sector unions” are “under attack.” Wisconsin and Ohio laws will “cripple” the “rights” of union members, “jeopardizing” the union’s income stream and “political clout.” McEntee’s union is under “assault” in New Jersey and Florida, states attempting to “curb bargaining rights or achieve far-reaching concessions” on “health benefits and pensions.”

When The Times uses words like “attack” and “assault” to describe the way in which state governments are attempting to mitigate union influence on the economy, that word choice indicates that unions are the victim. In reality, while unions may be victims here, so also may be non-union workers, who make up a far larger percentage of overall workers in the United States: In 2010, the United States Bureau of Labor Statistics reported that only 11.9% of American workers were unionized—leaving 88.1% of American workers un-unionized.

As Indiana Governor Mitch Daniels points out in this interview with NPR, collective bargaining through unions often does a disservice to not just the state and private workers, but union workers themselves. In the interview, Daniels tells of a time when he cut millions of dollars from the Indiana budget by changing how the state prepared meals for prisoners. “We could not have done this, by the way, with the collective bargaining agreement that we found when we got there,” Daniels said. He went on to explain why he found it necessary to cut union ability to bargain collectively (emphasis added):

You couldn’t, uh, change the personnel rules. We wanted to pay — we do pay — the best workers a whole lot more, as you would in most enterprises, than the worst workers. We wanted to change technology. We wanted to be able to, uh, reorganize government — that child protection step that I took, the actual first step was to, uh, carve out of a monstrous multi-purpose bureaucracy a new Department of Child Services that had one job, and one job only – reports directly to me to protect the lives of innocent children in Indiana. We couldn’t have done any of these things under the collective bargaining arrangement — you could barely move a Xerox machine from one room to the other without the union’s permission.

Indeed, even The Times recognizes that minimizing union power in Indiana proved better for union workers: “90 percent of [Indiana] state employees stopped paying dues after Governor Mitch Daniels ended bargaining for them in 2005,” the article admits. If union members were the real victims here, one would think more workers would voluntarily pay dues after being given the opportunity to opt out.

It could be misleading for The Times to use violent rhetoric like “assault” and “attack” in reference to efforts to minimize collective bargaining power. While words like that make unions and union members out to be victims, in reality, union members could just as easily be victims of unions themselves.

The Times article goes on quote McEntee in such a way that implies that unions and jobs are not related—while also bashing Republicans:

“The Republicans who were elected last November promised to focus on jobs, but instead they’re focusing on going after the unions,” Mr. McEntee said. “That’s a big overreach.”

However, as the Daniels interview indicates, McEntee’s logic is flawed. Unions and overall jobs are entwined, and to pretend they are not is misleading. Unions by their very nature influence who gets hired, where, and how much they are paid—two things that highly affect jobs for both union and non-union workers. This article, courtesy of The Heritage Foundation, explains how union presence affects jobs for both union workers and everyone else.

It is arguably misleading that The Times did not further elaborate on McEntee’s flawed claim that unions and jobs are not connected. This article analyzing the Bureau of Labor Statistics’ 2009 numbers shows that there is at least a correlation between unionization and unemployment: the more workers are unionized, the fewer workers there are (and the more unemployment there is). Of course, correlation does not imply causation, but McEntee seems to deny even correlation. The 2010 numbers can be found here, and current unemployment statistics found here, for comparison.

James Sherk of The Heritage Foundation explains how unions have affected jobs in America (click on the link to read his references):

Unions Cause Job Losses. The balance of economic research shows that unions do not just happen to organize firms with more layoffs and less job growth: They cause job losses. Most studies find that jobs drop at newly organized companies, with employment falling between 5 percent and 10 percent.

The Times’ chose to selectively quote McEntee as implying that jobs and unions are not correlated, and further, The Times neglected to present the facts that McEntee denies. This is misleading to Times readers.

As long as The New York Times persists in presenting flawed and biased stories on unions, the publication cannot be considered “accurate.”

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60 Minutes Says Unemployment Actually at 17%, Harry Reid Says “You’re Welcome.”

It’s hard to believe that a CBS outfit like 60 Minutes dropped a bomb like this just nine days out of an election that is expected to feature Democrats taking a UFC style beating, but nonetheless, they did.

“One third of all unemployed have been out of work for over a year. That hasn’t happened since the Great Depression.”

Flashback:

I don’t want Americans to know what you have done for them, Harry. I want them to understand what you and the other liberal Democrats through the decades have done to America.

It was government intervention in the free market that caused the problems we see today. Government intervention created 17% unemployment. More of the same won’t correct it.

It’s time to correct the problem. November 2 is the first step.

Hat Tip:  JammieWearingFool via Memeorandum

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Summer of Recover Rampage Continues Unchecked: Umemployment Rises to 9.6%



The leviathan that is the Summer of Recovery continues it’s rampage against the American economy, creating a swath of destruction similar to a Jenny Craig support group’s effect on an Old Country Buffet. This time, it’s caused the unemployment rate to rise to 9.6%:

Job losses continued to mount in the U.S. economy last month, though at a more modest pace than expected, putting further pressure on policy makers to take action to spur growth and employment.

Ok, let’s stop right there. Someone is going to have to talk to the official spokesmen of the Obama Summer of Recovery Communication Department, aka the main stream media, and tell them to stop using the term “unexpectedly.” Everything bad that happens in this economy is somehow not expected.

Not expected by who? I know I expected these things to happen. Pretty much everyone who opposes the Keynesian economic policies of this administration expected this.

After 18 months of fail, I think it’s time to stop being surprised with more bad news.

Nonfarm payrolls fell by 54,000 last month, matching the level of revised losses recorded the previous month, the U.S. Labor Department said Friday. The revision in July layoffs to 54,000 followed an original estimate of a 131,000 drop in payrolls.

The U.S. economy has shed jobs for three straight months, though the losses in August were about half the 110,000 predicted by economists in a Dow Jones Newswires survey.

The unemployment rate, calculated using a separate household survey, edged up to 9.6%, as expected, after holding at 9.5% for previous two months.

The Stimulus Plan was promised to keep unemployment under 8%. Without it, it was suggested the unemployment rate may jump as high as 8.5% in 2009 and peak at 9% in 2010.

And now Christina Romer is channeling Joe Biden as she leaves the White House, saying they didn’t really understand what was going on:

An estimate of what the economy will look like if a policy is adopted contains two components: a forecast of what would happen in the absence of the policy, and an estimate of the effect of the policy… we, like virtually every other forecaster, failed to anticipate how violent the recession would be in the absence of policy, and the degree to which the usual relationship between GDP and unemployment would break down.

So what is the anticipated response from the rabid socialists in the halls of Congress and the White House?

More spending.

Brilliant.

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Youth Unemployment Reaches New High, As Do Minimum Wages

The latest disaster caused by government’s invasion of the private sector is the worldwide unemployment rate of teens.

Global youth unemployment has hit a record high following the financial crisis and is likely to get worse later this year, the International Labor Organization (ILO) said Thursday.

The report from the ILO says 81 million out of 630 million 15-24 year olds where unemployed at the end of 2009, some 7.8 million more than at the end of 2007.

Thursday marks the first day of the UN International Youth Year; the ILO warned these trends will have “significant consequences for young people as upcoming cohorts of new entrants join the ranks of the already unemployed.”

The world risks a crisis legacy of a “lost generation” of young people who dropped out of the job market, the organization added in its report.

Sounds bad, right? But how bad is it just in America, during the Obama Recovery Summer?

Bad:

Unemployment has risen across all demographic groups in the recession, and especially for youth. In December 2007 the seasonally adjusted unemployment rate for workers between the ages of 16 and 24 stood at 11.8 percent. By April 2010 it had risen 7.8 percentage points to 19.6 percent: roughly 60 percent greater than the increase in overall unemployment. The figures are worse for teenagers: 25.4 percent of teenagers who want jobs cannot find them.

So what can be done to fix the problem?

For starters, get rid of the federal and state minimum wages. They are killing the teenage job sector:

The federal mandated minimum wage prevents young people from obtaining an entry-level position and gaining valuable skills. As economics 101 explains, businesses have a disincentive to hire inexperienced young workers if they are forced to pay them at least $7.25 an hour. As a result, a willing potential young worker may stay inexperienced and unemployed due to the government’s intervention.

According to Joe Sabia, an Associate Professor in Public Policy at American University:

A 10% increase in minimum wage reduces retail employment by 1%, and reduces employment among young workers by 3.4%. Obama’s proposal would raise the federal minimum wage by over 30%, causing even greater job loss at a time when our economy can least afford it.

A Wall Street Journal article confirms these findings:

Two years ago Mr. Neumark and William Wascher, a Federal Reserve economist, reviewed more than 100 academic studies on the impact of the minimum wage. They found ‘overwhelming’ evidence that the least skilled and the young suffer a loss of employment when the minimum wage is increased.

So why exactly does a higher minimum wage impact the youth this way?

Orphe Divounguy with the Center for Freedom and Prosperity explains:


Quinn’s First Law is once again proven correct: Liberalism always generates the exact opposite of its stated intent. In this instance, the liberal’s intent was to raise the minimum wage for all workers. Instead, it lowered the wage for a large amount of youth workers to $0.00.

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