Best of the Week
Most Popular
1. Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - P_Radomski_CFA
2.Fed Balance Sheet QE4EVER - Stock Market Trend Forecast Analysis - Nadeem_Walayat
3.UK House Prices, Immigration, and Population Growth Mega Trend Forecast - Part1 - Nadeem_Walayat
4.Gold and Silver Precious Metals Pot Pourri - Rambus_Chartology
5.The Exponential Stocks Bull Market - Nadeem_Walayat
6.Yield Curve Inversion and the Stock Market 2019 - Nadeem_Walayat
7.America's 30 Blocks of Holes - James_Quinn
8.US Presidential Cycle and Stock Market Trend 2019 - Nadeem_Walayat
9.Dear Stocks Bull Market: Happy 10 Year Anniversary! - Troy_Bombardia
10.Britain's Demographic Time Bomb Has Gone Off! - Nadeem_Walayat
Last 7 days
Stock Market Crash Edition - 26th Mar 19
Handy Ways to Boost Your Home Income - 26th Mar 19
US Treasury Bond Yield Inversion and Political Fed Cycles - 26th Mar 19
Golan Heights Oil all about the Shekels - 26th Mar 19
Falling Yields a Catalyst for The Gold Catalyst - 26th Mar 19
Can We Lock Up Rachel Maddow Now? - 25th Mar 19
Real US National Debt Might Be $230 Trillion - 25th Mar 19
Friday's Stock Market Sell-Off - New Downtrend or Just Correction? - 25th Mar 19
20 Days Left to Find Buying Opportunities In Gold - 25th Mar 19
Will the Historic Imbalance in Gold Stocks to Gold Price Resolve ? - 25th Mar 19
EasySMX Wireless Games Controllers Review - 25th Mar 19
Stock Market Short-term Top - 25th Mar 19
UK Population Growth - Latest ONS Immigration Statistics and Consequences - 24th Mar 19
The Fed Follows Trump's Tweets, And Does The Right Thing - 24th Mar 19
Yield Curves, 2yr Yield, SPX Stocks and a Crack Up Boom? - 24th Mar 19
Risk/Reward in Silver Favors Buying Now, Not Waiting for Big Moves - 23rd Mar 19
Similarities Between Stock Market Today and Previous Bull Market Tops - 23rd Mar 19
Stock Market DOW Seasonal Trend Analysis - 23rd Mar 19
US Dollar Breakdown on Fed Was Much Worse Than It Looks - 23rd Mar 19
Gold Mid-Tier GDXJ Stocks Fundamentals - 23rd Mar 19
Which Currency Pairs Stand to Benefit from Prevailing Risk Aversion? - 23rd Mar 19
If You Get These 3 Things Right, You’ll Never Have to Worry About Money - 22nd Mar 19
March 2019 Cryptocurrency Technical Analysis - 22nd Mar 19
Turkey Tourist Fakes Market Bargains Haggling Top Tips - 22nd Mar 19
Next Recession: Finding A 48% Yield Amid The Ruins - 22nd Mar 19
Your Future Stock Returns Might Unpleasantly Surprise You - 22nd Mar 19
Fed Acknowledges “Recession Risks”. Run for the Hills! - 22nd Mar 19
Will Bridging Loans Grow in Demand and Usage in 2019? - 22nd Mar 19
Does Fed Know Something Gold Investors Do Not Know? - 21st Mar 19
Gold …Some Confirmations to Watch For - 21st Mar 19
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

Obama's Job Numbers Don't Add Up

Politics / US Politics Sep 10, 2011 - 07:02 AM GMT

By: Barry_Elias


Nearly 32 months after taking the oath of office, President Obama implied his administration failed America during a speech to a joint session of Congress last night concerning jobs.

Despite his repeated claims as a candidate and president to focus on job growth as his number one priority, the president elected to wait until his next campaign to address this issue.

After taking the oath of office at his inauguration, the president essentially ignored the issue of job creation.

Consider his major agenda during that time frame:

1. Stimulus Program: American Recovery and Reinvestment Act of 2009 (ARRA)
2. Healthcare: Healthcare and Education Reconciliation Act of 2010

Regarding the Stimulus Program:

The stated intent of this program was to create and/or save 3 million new jobs.

Fact: employment fell by nearly 7 million jobs through the end of 2010.

In January 2009, Christina Romer (Chairperson, Council of Economic Advisors to President Obama) and Jared Bernstein (Chief Economist and Economic Policy Advisor, Vice-President Joseph Biden) co-authored the $800 billion stimulus program (American Recovery and Reinvestment Act of 2009).

Proponents of the administration currently claim unemployment would be much higher today if the stimulus program was not enacted.

However, this statement contradicts the premise upon which the stimulus program was presented.

In 2009, the administration claimed by now unemployment would rise to 8.1 percent if the stimulus program was not enacted.

However, after enacting the stimulus program two-and-a-half years ago, unemployment is actually higher — today it is 9.1 percent.according to the Bureau of Labor Statistics.

The administration projected this figure would be 6.8 percent (20 percent less) if the stimulus program was enacted.

Prior to her departure in June 2010, Christina Romer testified before the United States Congress Joint Economic Committee. At that time she proclaimed the stimulus program would contribute little growth by the end of 2010 and unemployment would remain near 9.6 percent through 2010.

This statement undermines the stated policy objective as well.

The policy analysis and recommendation provided by Christina Romer and Jared Bernstein contained a crucial error in the assumption of an economic multiplier. They believed every $1of government expenditures would generate $1.55 of total economic income (a multiplier of 1.55). Analysis provided by Dr. John Taylor of Stanford University suggests this multiplier may be 80 percent less, or close to 0.3.

Recently, the president stated in jovial fashion that the “shovel ready” projects contained within the stimulus program may not have been as “shovel ready” as he would have liked. This statement suggests disingenuous undertones.

The priorities demonstrated by the president signal an economic, social, and political proclivity, which is anathema to meritocracy, equal opportunity, and productivity. His vision lacks an adequate focus and strategic plan to realize his stated objectives. Moreover, his credibility concerning prudent economic policy has been seriously eroded.

My sense: the probability of a 2012 victory for the president has been strongly diminished.

Read more: Obama's Job Numbers Don't Add Up

By Barry Elias,

Barry Elias provides economic analysis to Dick Morris, a former political adviser to President Clinton.

He was cited and acknowledged in two recent best-sellers co-authored by Mr. Morris: “Catastrophe” and “2010: Take Back America - a Battle Plan.” Mr. Elias graduated Phi Beta Kappa from Binghamton University with a degree in economics.

He has consulted with various high-profile financial institutions in New York City.

© 2011 Copyright Barry Elias - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules