Saturday, April 7, 2012

Happy Easter

What’s new Today 

Story #1 relates some of the inconsistencies in the unemployment numbers.  #2 talks about how the Obama Administration that is lambasting tax cuts from the Bush Administration is lauding the Chinese government for a new policy to tax cuts in China.

        1. Unemployment numbers

The March unemployment data has been issued. The government claims 120,000 jobs were created and the unemployment rate fell to 8.2% from 8.3% in February. However closer looks at the statistics reveal an altogether different scenario.

In March, an additional 164,000 people dropped out of the labor force bring the total of people not in the labor force up to nearly 88 million (a new record). In January of 2009 (when Obama assumed office that total was 81 million.

The published unemployment rate of 8.2% does not include those who have dropped out of the job market or are discouraged. However the Bureau of Labor Statistics does publish a statistic that takes into account the total unemployed, plus discouraged workers and those marginally attached to the labor force (but not the entire universe of those who have completely dropped out of the labor force), that they all the U-5 unemployment rate, which in March was 9.6%.

If the labor force participation rate (that part of the overall civilian population in the labor force) were the same as when Obama took office, then the actual unemployment rate would be 10.5%. As those not in the labor force has increased nearly seven million since Obama became President.

By comparison the last time the nation faced a severe recession (actually worse than what Obama faced) was in the early 1980's. The unemployment rate peaked at 10.8% (November 1982) under Ronald Reagan; however within 14 months that rate was down to 7.6% after the effect of Reagan's new policies took hold -- a drop of 30%.

In the past 12 months only 33% of the people who came into the age groups that make up the civilian population entered the work force vs almost 67% traditionally found there.  

2. Do as you do, Not as I say

While making positive comments about the most recent five-year-plan developed by the Communist government of the People’s Republic of China, Undersecretary of State Robert Hormats specifically applauded China’s decision to lower taxes because it would spur economic growth.

“What’s really encouraging to me is that there are a lot of groups in China that are reform-minded,” Hormats said while addressing a group of foreign reporters in New York City last week

The hypocrisy of the left is paramount in this story.  The applaud tax cuts in China while condemning them here.  Kind of reminds you of Obama stopping drilling in America while applauding Brazil’s offshore drilling telling them we want to be their biggest customer. 

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