Free Markets, Free People

Unemployment rises to 9.8% – yeah, you read that right, rises …

Of course that’s the "official" number – as we’ve been pointing out for some time, the real number is well into double digits. But it again points out that markets are not at all happy with the business environment and consumers simply aren’t consuming at a level to push hiring even if it was settled.

In a significant setback to the recovery and market expectations, the United States economy added just 39,000 jobs in November, and the unemployment rate rose to 9.8 percent, the Department of Labor reported Friday. November’s numbers were far below the consensus forecast of close to 150,000 jobs added and an unemployment rate of 9.6 percent.

The increases tallied are mostly seasonal temporary work, meaning private companies aren’t creating many jobs at all (again, the economy has to generate around 125,000 new jobs a month just to stay even):

Private companies, which have been hiring since the beginning of the year, added 50,000 jobs in November. Most of those increases came from temporary help, where 40,000 jobs were added, and in health care, with an additional 19,000 jobs.

Retail jobs declined by 28,000 in November, while manufacturing, which had showed some strength earlier in the year, lost 13,000 jobs.

Government jobs dropped by 11,000 in the month.

Outlook? Bleak. Meanwhile the tax fight continues in the Congress. If you’re wondering why the business climate remains so unsettled, it is thinking like this which is typical of the majority party there:

Yeah, that’s right – this yahoo is claiming that small businessmen don’t ever make any decisions based on tax considerations. So they won’t mind a tax hike in the least.

How in the world does anyone take someone like that seriously? However, understanding that his thinking is most likely not uncommon there, it isn’t at all hard to imagine why Congress seems clueless as to how to stimulate the economy, is it?


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17 Responses to Unemployment rises to 9.8% – yeah, you read that right, rises …

  • Little wonder he got out of “small business,” and headed to congress where he could live off the largess of all those little percentage points of tax hikes.  If he never took tax considerations into account, he wasn’t much of a business man!

    • That was kind of my take, too.  Running a small business and running a successful small business are two different things.  I wonder which one he did

  • so how much price of gold and silver will be

  • This pragmatic moderate Democrat legislator is just telling the simple truth. Most small business people are grunt engineer types who can’t help but work. They understand that it’s their lot in life to work hard and build a business and employ other people.

    Just as it’s my lot in life to grade lots of papers, make a very modest salary, dodge the occasional moose I encounter on my walks around campus, and tell dense righties how economics and politics in the real world really work, based on my extensive observation from the exalted position of my office and the faculty lounge.

    We wise pragmatic moderate leftists work so very hard to ensure that society is fair. We stay up late discussing the options, and slave over a word processor preparing position papers and policy analysis. Plus, of course, our long hours indoctrinating educating the next generation. The least you thick rightie engineer and business types can do is hold up your end of the bargain and furnish the money to make our glorious, fairness-enhancing programs work. So what if you can only afford a 47 inch widescreen this year instead of a 55 inch? 47 is plenty big enough for you to slobber over Sarah Palin’s full lips and ample bosom. Especially in HD.

    You don’t need to be watching TV anyway. You need to be holding up your end of the bargain by working harder to come up with the money society so desperately needs. So get back to work.

    • Quote of the day .. maybe of the year …

      “Do you allow yourself to be held hostage and get something done for the sake of getting something done, when in fact it might be perverse in its ultimate results? It’s almost like the question of do you negotiate with terrorists.”

      Save a link to this quote so you can throw it back at those “process wonks” in the future.

  • The Dems have a plan and it’s to have everyone collect extended UI forever. You get a 2:1 return on every dollar according to Pelosi.

    • Hey, Here is an Idea, Why not just lay off everyone in the country and we can all draw UI ! That way all of the companies can slash their expenses, profits are up, and everyone has money!  Utopia!

  • With this guy’s thinking, is it any surprise that he’s in Congress and no longer a small businessman. His business probably went belly up with 6 months because he didn’t take taxation into consideration.

    Nice to see you back, Ott.  I needed a good laugh today.


  • From Wikipedia:
    “Yarmuth is a Louisville native who graduated from Atherton High School. He then graduated from Yale University, majoring in American Studies. After working for U.S. Senator Marlow Cook from 1971 to 1975, he returned to Louisville to begin his publishing career when he founded theLouisville Today magazine (1976–1982). He later worked as a vice-president of University Relations at the University of Louisville.
    Prior to his election to Congress, Yarmuth was best known for founding the weekly paper, Louisville Eccentric Observer (LEO), in 1990 and for writing a progressive-oriented weekly political column that was featured on the first page of most issues. ”
    So his experience, if you can call it that, consists of founding a free weekly alternative newspaper (one of those pieces of crap that aspire to be the Village Voice), working in government, working as a flunky at a university, and writing a magazine that went out of business.
    Who could fail to be impressed by such a star-studded CV?

    • But according to Keynes, production will take care of itself.
      It’s magic…just like on TV.

  • “this yahoo is claiming that small businessmen don’t ever make any decisions based on tax considerations.”

    Actually he was a bit more specific; he said “personal tax rate” , not business taxes. He may be correct that nobody he knows made a business decision based on their personal tax liability.

    • If you are an S corp or LLC your business rate is your personal rate.

      • Correct. I am a small businessperson, and I am offering a special price for clients who pre-pay for work in 2011 before end of this year. The main reason is that I expect my personal income taxes to be higher next year.

        That is indeed “a business decision based on personal tax liability”. And my case isn’t uncommon, not uncommon at all. This congressman is just an idiot without the background to make such claims, as orthodoc nicely demonstrated with some digging on the guy’s background.