The Failure of Obamanomics

The monthly jobs numbers are both tragic and telling. Each report brings forth spin from the White House asserting how the economy has turned the corner and the recovery is occurring. Nothing could be further from the truth! Jobs are not being created, certainly not at the rate which would be consistent with a recovering economy.

Nor are jobs being created at a rate sufficient enough to deal with growth in the labor force. As a result, despite all the political puffery, the unemployment problem is not going away any time soon. From the Wall Street Journal, with emboldening added, comes a blunt assessment of job creation:

The latest employment reports have not been encouraging. At the rate of 36,000 new jobs a month-the number gained in January-we will never get back to full employment. Even if we keep adding jobs at the December rate of 121,000 new jobs, we wouldn't achieve full employment in this millennium.

The White House keeps hoping for monthly job gains of 250,000. But even gains of that magnitude-more than double the average gain last year- would not get America back to full employment until 2018.

This assessment of the lack of job creation is indicative of the failure of the Administration's economic policy. The policy has been tragic, producing the following outcomes: 

  • A poorer America as a result of a seriously under-performing economy for now and apparently well into the future
  • Economic suffering and hardship for those unable to find work
  • Bankruptcies and foreclosures as a result of loss of income
  • Trillions of dollars wasted on useless "stimulus"
  • Trillions of dollars of debt imposed on future generations
One might hope, probably in vain, that two positive lessons might be gleaned from this terribly tragic and expensive experience:

  1. Keynesian economics (again!!!!!) does not work!
  2. Never elect an inexperienced unknown to the highest office in the land 

Monty Pelerin at