Extending the Bush Tax Cuts Worked

If the unemployment numbers are right, the percentage of unemployed Americans dropped from 8.5% to 8.3%. Of course, the CBO published last week that the real unemployment rate is near 10%. The new percentage, of course, does not take into account the number of people who have dropped out of the labor force. Tyler Durden writes:

1.2 million people dropped out of the labor force in one month! So as the labor force increased from 153.9 million to 154.4 million, the non institutional population increased by 242.3 million meaning, those not in the labor force surged from 86.7 million to 87.9 million. Which means that the civilian labor force tumbled to a fresh 30 year low of 63.7% as the [Bureau of Labor Statistics] is seriously planning on eliminating nearly half of the available labor pool from the unemployment calculation.

This is the largest absolute jump in ‘Persons Not In Labor Force’ on record . . . and biggest percentage jump in 30 years.

As they say, there are “Lies, damned lies, and statistics.” When you’re talking about politics, it’s almost always lies and damned lies. Even so, if the economy is going to turn around, tax cuts and spending cuts are the roads to take. If the Bush tax cuts had not be extended, the unemployment rate would be staggering. As it is, after three years of Obamanomics 8.3% is not a good number since the unemployment rate is still a half a percentage point higher than when he took office.

As expected, President Obama took credit for the lower number and warned Congress not to “muck up” the recovery by thwarting his economic policies. If the drop in unemployment numbers is real, then he can thank Congress for not voting for his economic policies.

It’s interesting that he is calling on Republicans to pass an extension of the two-percent cut to payroll taxes paid by 160 million Americans for the rest of the year. Bravo. He is admitting that tax cuts are the solution to economic recovery not phantom “stimulus money.”

Here’s another number to keep in mind: The economy grew only 1.7% in 2011, the slowest growth in a non-recession year since the end of World War II.


Comments

comments

  • sally

    I don’t know how they get the 1.2 million. They say it’s statistical. But what they did is reduce the overall number of jobs possible by 1.2 million. So fewer jobs is gonna bring down the unemployment rate because… If the labor force were what it is, or what it was when Obama was inaugurated 2009, the unemployment rate would be close to 10%. It’s only 8.3 because they have used seasonal adjustment to just say that last month, 1.2 million people gone from the workforce. No jobs anymore.

  • samtman

    It worked well for the Rich, no job growth, only stock market growth, the more money they poured into the stock market the higher it went.That money could have gone inot the economy in the form of infrastracure spending creating jobs, paying off the debt, instead of gambling on the stock market, We need fair taxation, the rich have made more than enough money of the backs of the working poor and the middle class who have seen their wages stagnate and loose buying power, while the rich have seen their income go up by 470% since 1980, when Reagon became president and starated the trickle down econmy by giving big tax cuts to the rich, the money trickled down to Mercedes Dealer and the stock market, the reaql economy saw nothing of that money, I know, I was there at the time, and I was old enough to vote.

  • jerry99

    The real unemployment rate is the people on unemployment compensation, those that have given up looking, those that work part time, and those that are working in a job unrelated to their experience- usually at a much lower salary. The real unemployment rate is ~18%, just like it is in socialist Europe.
    For taxes, Stockman, who worked for Regan, is right. With a 15 trillion dollar US debt we should stop ALL of the Bush tax cuts. Bush was just like Lyndon Johnson- two wars, free pills for the elderly, increased spending like a Democrat, and Tax Cuts. Just lunacy.

  • Caroll

    The one thing that amazes me is how the American people can allow themselves to be duped into thinking the payroll tax cuts are anything but a death knell for their own Social Security retirement. They are DEFUNDING their retirement! And Obama has led them to believe he is helping them. Three plus years of this disaster is taking it's toll, my friends. Wake up and question every move this president makes because he ALWAYS has a hidden agenda.

    • daves

      Since those cuts were paid for, how do you figure it is hurting anyone's SS benefits?

  • richbrat

    What is this Godfather smoking? Worked for who? Himself, maybe. More exporting of capital and jobs from US to China, seems even a tax cut wasn't enough incentive for globalist investor traitors to stay. I am so sick of hearing about the marvel and miracle of China, financed by US, investment newsletters like Agora, Sovereign Society, et al, encouraging their members to "look at opportunities overseas," ("follow the money"); I could just puke.

    • Dan

      The cost of labor is only a part of doing business in the US. Taxes and regulations add a great deal to this cost. Unions add another big cost to manufactoring. Factor in the cost of creating the new manufacturing plant overseas, training the workers and it almost equals the cost of labor in the US. Plus most foreign workers do not have the same work ethic as US workers, nor the same dedication to the company that hires them. Turnover is pretty high in foreign countries.
      PS. China is entering a recession of their own and have their own bubbles that are about to burst.