Unemployment Reaches 9.8%
While unemployment continue to climb at numbers higher than experts expected, and signaling the so-called “stimulus” isn’t working despite claims to the contrary, it seems the only program the president can come up with to boost employment is shilling for the Chicago Olympics.
Meanwhile here in the real world:
U.S. employers cut a deeper-than-expected 263,000 jobs in September, lifting the unemployment rate to 9.8 percent, according to a government report on Friday that fueled fears the weak labor market could undermine economic recovery.
Ya think? And, of course, as Dale has pointed out, if we calculated unemployment as we did in the past, the true number would be somewhere in the 16-17% area. Even the one area that was showing growth – government employment – is shedding jobs. 53,000 in this last reporting period.
This has even Paul Krugman upset:
[T]he administration’s own economic projection — a projection that takes into account the extra jobs the administration says its policies will create — is that the unemployment rate, which was below 5 percent just two years ago, will average 9.8 percent in 2010, 8.6 percent in 2011, and 7.7 percent in 2012.
This should not be considered an acceptable outlook. For one thing, it implies an enormous amount of suffering over the next few years. Moreover, unemployment that remains that high, that long, will cast long shadows over America’s future.
Krugman’s solution is as predictable as Iran stalling the P5+1 until it has a nuclear weapon – more spending. Specifically a 2nd stimulus. But weren’t we all assured that the first stimulus would stem the tide of unemployment and keep it under 8%? So Krugman’s plan has us repeat what hasn’t worked to this point. No talk of cutting corporate income taxes to spur hiring, in fact no talk of any other method which might actually spur the market instead of providing temporary spending for temporary jobs.
Or, more succinctly, they haven’t a clue and while Rome burns, Nero is in Copenhagen fiddling away.