Spouting Nonsense
Late this past April, Joe Biden claimed the US would create 200,000 to 500,000 new jobs in the next few months. Seems he was right. There were 431,000 jobs created last month resulting in a drop of the unemployment rate to 9.7%. Congratulations should be in order, right? Guess again.
Of those 431,000, only 41,000 were created in the private sector. The rest of the 431,000 were "created" by the census and the government at large. Now, I'm not as jaded as people think so 41,000 last month is better than losing 230,000 in the same month last year, but the historian in me is screaming.
The fact that most of the jobs created were by the government makes me realize that Obama's version of The New Deal, what I call The Raw Deal, is having the same effect as FDR's plan did --- nothing. Unemployment is still high, only ticking down because of inflated government hiring. Looking at the 1930s (since the MSM wants to compare this economy to it), we can see as government employment (FDR's "Alphabet Soup" including TVA, CCC, and others) and government spending increased, it had a miniscual effect on unemployment. As you can see in the graph below, unemployment was at about 15% in 1931 and was still at about 16% in 1939. Only one year, 1937, did unemployment drop below 15%. So much for that theory that government can create jobs.
Of those 431,000, only 41,000 were created in the private sector. The rest of the 431,000 were "created" by the census and the government at large. Now, I'm not as jaded as people think so 41,000 last month is better than losing 230,000 in the same month last year, but the historian in me is screaming.
The fact that most of the jobs created were by the government makes me realize that Obama's version of The New Deal, what I call The Raw Deal, is having the same effect as FDR's plan did --- nothing. Unemployment is still high, only ticking down because of inflated government hiring. Looking at the 1930s (since the MSM wants to compare this economy to it), we can see as government employment (FDR's "Alphabet Soup" including TVA, CCC, and others) and government spending increased, it had a miniscual effect on unemployment. As you can see in the graph below, unemployment was at about 15% in 1931 and was still at about 16% in 1939. Only one year, 1937, did unemployment drop below 15%. So much for that theory that government can create jobs.
Now, take the above information, and also look at today's unemployment figures set against the percentage of GDP related to government spending. You'll notice that the estimates for 2010 are very much higher than in the 1930s, but that's not what we are necessarily concerned about (though it is a HUGE problem). We are concerned with the spike you see after 1930, and the spike we see going into 2010. Take those two historical figures and you can now see how increased spending does not effect unemployment. (To note, the two huge spikes before 1920 and between 1940 -1950 are the results of World War I and World War II)
Instead, the Keynesians in the White House and Congress would have you believe that the government can spend it's way out of a recession. Those same "geniuses" would have you believe that the economy is recovering. 41,000 jobs added in the private sector might be a start, but as long as the government keeps getting in the way, we will not have true economic recovery for quite some time. Never ignore history. The left always seems to ignore history, when they're not trying to re-write it. Never ignore history.
Posted by downstateiladvocate at 6/4/2010 9:25 AM 
Categories: Economy
Tags: Unemployment Obama White House Congress FDR Joe Biden
Categories: Economy
Tags: Unemployment Obama White House Congress FDR Joe Biden
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