While the job picture is improving little by little in the Sacramento Metropolitan Statistical Area that includes El Dorado County, nationally it is not a pretty picture. Friday the U.S. Commerce Department reported that though it revised the first quarter GDP growth from 1.9 to 2 percent, the second quarter Gross Domestic Product grew at only 1.5 percent.
Add that pathetic gain to 8.2 percent unemployment and it totals up to federal malaise.
The annual GDP is $15.6 million about the same amount as the national debt.
And economists tell us the recession ended in June 2009. That year the economy shrank 3.1 percent. In 2010 it grew 2.4 percent. In 2011 it grew 1.8 percent, according to revised figures from the Commerce Department.
Meanwhile the Democratic Senate is about to enter its 40th month without a budget. What’s the Democratic Senate’s latest plan? Shut down the government if the House Republican majority doesn’t agree to raise taxes. That’s all the Democrats can seem to offer — more spending and higher taxes.
Businesses big and small are frozen in their tracks as they worry about the expiration of the Bush tax cuts at the end of this year and the already planned big hike in taxes on dividends and capital gains that are plugged into Obamacare.
While the president has spent the last three years insulting bankers and passing the bizarre Dodd-Frank regulatory strangulation act, used the EPA to try to stop oil and gas drilling in shale, he has compounded it by telling business entrepreneurs, “You didn’t build that.”
The 8.2 percent official unemployment rate is just part of the story.
“But if you add to that the number of discouraged workers who have dropped out of the labor market since the recession began in early 2008 — approximately 8 million – the rate would be 12 percent,” wrote Mortimer Zuckerman, chairman and editor in chief of U.S. News and World Report in the July 24 Wall Street Journal. “Fifty percent of the jobs created since the recession hit have been part-time, with no benefits and a wage that’s inadequate to enter the middle class. If you add the number of part-time workers into the mix, the unemployment rate climbs to 14.9 percent.”
By the way, under President George W. Bush the jobless rate averaged 5.3 percent and rose to 6.8 peercent when his party lost the election and we got a majority of Democrats in both houses for two years. Obama is still trying to blame Bush for the economy. But Bush also inherited a recession when he won the presidency. He solved that by cutting taxes, which also led to more revenue.
During Obama’s presidency unemployment has averaged 8.8 percent.
“Job seekers are only one-third as likely to find a job as before Obama was elected,” Zuckerman wrote.
So far $5 trillion in deficit spending and handing out billions to solar manufacturers that do nothing but go bankrupt only proves that Obama “didn’t build that.” All he has built is federal malaise.