WSJ: Obama Presser Highlights Failure Of His Own Policies

How bad are Obama and the Democrats policies for unemployment? This bad

Presidents typically invite Americans to appear at Rose Garden press conferences to trumpet their policy successes, but yesterday we saw what may have been a first. President Obama introduced three Americans—an auto worker, a fitness center employee and a woman in real estate—who’ve been out of work so long they underscore the failure of his economic program. Where are his spinmeisters when he really needs them?

One thing rarely reported in this fight to extend unemployment benefits is that not everyone is entitled, particularly people who voluntarily left or were terminated for cause (such as for taking vacations and playing golf during a crisis). What is being done for them? Nothing, you say? So, Obama is playing politics?

But Mr. Obama was nonetheless obliged to concede that, 18 months after his $862 billion stimulus, there are still five job seekers for every job opening and that 2.5 million Americans will soon run out of unemployment benefits. What happens when the 99 weeks of benefits run out? Will the President demand that they be extended to three years, or four?

He’ll have to, since his policies, along with the other Democrats, are not pro-increased hiring.

The one possibility the President and Congressional Democrats won’t entertain is that their own spending and taxing and regulating and labor union favoritism have become the main hindrance to job creation. Since February 2009, the jobless rate has climbed to 9.5% from 8.1%, and private industry has shed two million jobs. The overall economy has been expanding for at least a year, but employers still don’t seem confident enough to add new workers. The economists who sold us the stimulus say it’s a mystery. But maybe employers are afraid to hire because they don’t know what costs government will impose on them next.

That’s what I’ve been saying for months. And the Democrats always have one more reason for the private sector to say “I really need that extra position or two to expand my business, but, I may end up getting hosed by Los Federales. I guess I’ll hold off.”

A 2006 NBER study by Raj Chetty of UC Berkeley on a related subject begins, “It is well known that unemployment benefits raise unemployment durations.”

The current recession is bearing this out, as a record 6.7 million Americans have now been out of work for at least six months. That’s 45.5% of the total jobless, close to the highest share ever recorded. The number was 23.4% in February 2009. Americans tend to support jobless benefits on compassion grounds, but at some point such a policy becomes the false compassion of welfare by keeping people out of the job market and thus not learning new skills.

Quite frankly, without the unemployment payments (hey, what about those who do not qualify for unemployment? Where’s your compassion for them, Dems?), these people would be on the streets, because they would be in the same place: unemployed, due to other Democrat policies. It’s a catch-22.

PS: How bad is the economic outlook? So bad that even the Daily Kos notices.

Crossed at Right Wing News and Stop The ACLU

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3 Responses to “WSJ: Obama Presser Highlights Failure Of His Own Policies”

  1. John Ryan says:

    Obama;s approval rating average is 4% less than the number that voted for him on 2006. His poll numbers are twice as high as Bush’s when he left. Twice as high. Most people still blame Bush for the economy: deregulating the financial sector, cutting taxes when we are in having 2 very long and very costly wars. Teach the rightwing (whose only age group votes for them) constantly talks about the Greatest Generation. During WW II the highest income earners paid 80% income tax rate without squealing because they felt it was their wartime duty. Now the rich do not pay 1/2 of that rate.

  2. Bunny Colvin says:

    Stick to retail, Screech. This econ stuff is way over your head. “Pro- increased hiring”? You are a pretender. Tell us more about China’s economy.

    Why would I have compassion for someone who voluntarily left a job during a downturn or was playing golf or on vacation during a crisis?

    As I’ve said before, you don’t know shit about economics, finance or much of anything else.

  3. John Ryan says:

    and the GOP was defeated in their attempt to stop these unemployment benefits. The GOP voted in a block, it took 60 senators to stop them And Repubs where is that compassionate conservatism ?

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