May 9, 2010
By Herman Cain
The Bureau of Labor Statistics (BLS) just reported for April 2010 that 290,000 private sector new jobs were added (66,000 census workers), and productivity increased 3.6 percent in the non-farm business sector during the first quarter of 2010. That’s the good news.
The bad news is that the unemployment rate rose to 9.9 percent from the previous three-month rate of 9.7 percent, which means 15.3 million people are still unemployed.
Here’s what the president’s economic advisors have said about the persistent high unemployment rate:
Obama’s National Economic Council Director Larry Summers “Predicts Perpetually High Unemployment.” The Hill 4/30/10
Obama’s Treasury Secretary Timothy Geithner says “Unemployment Will Stay Unacceptably High for a Long Period of Time.” (NBC’s “Today Show, 4/1/10)
Obama’s Council Of Economic Advisers Chair, Christina Romer, says “Current Economic Growth Not Enough To Get A Lot Of Job Growth.” (NBC’s “Meet The Press,” 4/4/10)
Obama’s Economic Recovery Board Chair (Paul Volker) says that “Unemployment Will Be Too High for Far Too Long.” The St. Louis Beacon, 5/4/10)
Although the unemployment rate is getting worse, the president’s advisors have surrendered to high unemployment. They don’t even expect a different result, and they have given no indication of trying some different ideas.
Some of us are not willing to give up on creating jobs for the 15.3 million people that are still unemployed. We have persistently offered suggestions on how to create millions of jobs in the economy instead of imaginary “saved” jobs and more government jobs. We can create job growth across all sectors of the economy.
In February of 2010 The Economic Report of the President was released by his Council of Economic Advisers. It was repackaged propaganda about creating jobs and rebuilding the economy through health care legislation, clean-energy initiatives, infrastructure projects, small-business tax breaks, and more ineffective gimmicks.
The propaganda may be working on some people, but their economic recovery strategy is not working. The modest job gains are not seismic shifts in businesses’ plans for growth. They are the result of businesses stabilizing their businesses while squeezing out more and more productivity gains.
Nearly every night on my radio show, I receive calls from small businessmen who say they are just trying to survive. Even worse are those that call and say that they cannot survive any longer and may have to close the doors on their businesses.
One caller shared with the audience that he had lost his job that day, because his company was trying to get below 50 employees so it could avoid the health care mandate penalties it could not afford. On the other hand, three CEOs of multi-billion dollar companies told me recently that they would be continuing to reduce their workforces this year. Though not statistically determined, these stories are real.
It pains me to hear real-life stories like these, just as it pains me to personally know many talented people who can’t find a job because this economic recovery is stalled, and the administration and Congress will not try any ideas that just might look like they came from a conservative.
Whereas I am happy for the 290,000 people who found jobs last month, I will not trumpet an economic recovery until the unemployment rate starts to consistently go down, businesses are in a growth mode again, and 15.3 million unemployed people are happy again.
It’s going to take more than propaganda to make that happen.