As 2011 drew to a close, the Obama administration paraded the below 9% unemployment figures and declared the economy showed signs of recovery. But some economists are not so sure.
Dan Celia of American Family Radio is more than cautious in his predictions for the 2012 economy and job market. He warns that the drop in unemployment may not be as accurate as the White House claims because there are thousands of people dropping out of the job market even though they have not found a job. Even though Obamanomics experts say they have accounted for those dropping out of the job market, Celia believes their figures are not accurate, so as to make figures look good for them.
Additionally, Celia points out that December’s unemployment figures may also reflect a number of seasonal jobs that will be gone in January and could drive the unemployment figures back to the higher numbers.
Celia and other critics are also reminding the general public of Obama’s failed promises and policies that were supposed to have created millions of jobs. First and second were the two Stimulus packages at a cost of around $1.5 trillion, that not only had no effect on the unemployment rate, but actually led to an increase in the number of lost jobs.
Then the reduction in the Social Security tax withheld from our paychecks was also intended to stimulate spending and create more jobs. But when this didn’t work either, the Obama administration blamed the failure on increased fuel costs. Celia suggests that the Obama administration may even still try to claim that the payroll tax cuts actually did work to stimulate the economy and lower the unemployment figures.
The bottom line is that a number of financial experts are predicting that the 2012 job market and economy will show very little improvement over 2011 and that Americans need to continue to brace themselves for the long haul.