The Economic Recovery In Real Numbers

Politichicks posted an article today with some of the economic numbers President Obama seems to have omitted from his State of the Union speech.

The article reminds us:

While it might be true that businesses have created 11 million jobs (not Obama), what President Obama fails to mention is that he has been in office 6 years and during his first year in office the economy lost over 4 million jobs. Even with the new jobs created, at best, the economy has created a net amount of 7 million jobs private sector jobs. However, due to the fact that there has also been a loss in government jobs, under President Obama there has been a creation of, at most, 6.4 million jobs during his time in office.

What President Obama and most media outlets also failed to mention is that in order to keep up with population growth, the economy needs to create at least 125,000 jobs per month or 9,000,000 jobs in the 72 months since President Obama took office.

The article also reports:

  • The current labor force participation rate is 62.7%, which matches the lowest rate on record. The lowest rate on record was set in September 2014.
  • Since the beginning of the Great Recession (2008), only 943,000 more people are employed, but the number of individuals over the age of 16 has grown by 14,159,000.
  • Worker’s wages have stayed stagnated. In constant dollars (dollars adjusted for inflation), worker’s wages have actually decreased.
  • The Consumer Price Index has increased by 11.2% since President Obama took office, even with the price of energy dropping by almost half.

The article concludes:

The truth of the matter is that we have endured the worst economic recovery on record and much of it is due to President Obama’s policies. Even with the millions of new jobs that have been created and the fact that people’s confidence in the economy is increasing, we still have a long way to go to reach pre-recession economic levels and if President Obama keeps pushing his big government policies, we may never get there.

Somehow none of the above was mentioned in the State of the Union speech.

 

Move Along, Nothing To See Here

Yesterday the Washington Examiner posted an article with the headline, “Fun with the Fed: Inflation is low, but the cost of living is up.” Meanwhile, CNS News posted the following graph yesterday:

Price of Ground Beef Hits All-Time High in November

It is hard for anyone who has been in a grocery store in the past year to believe that inflation is low.

The Washington Examiner reports:

From July to August, the “Core Consumer Price Index” did not move. That means zero inflation, if you use the measure of inflation the Federal Reserve uses when setting monetary policy. But core CPI omits volatile prices like food and energy. If you have a family, you’re probably pretty aware that food and utility bills are a big factor.

The result: The inflation measure that guides Fed decisionmaking has little resemblance to the inflation measure that guides family budgetmaking.

This is another example of the government manipulating numbers to get the desired result. Any resemblance to what is actually taking place and what the government is reporting is purely coincidental.

The Washington Examiner lists some of the price increases in the last year that impact families trying to live within their budget:

Food at home is up 2.9 percent.

Electricity is up 4.1 percent and gas bills are up 5.8 percent.

Coffee is up more than 50 percent from last year.

The article reports:

The net result is that life has gotten considerably more expensive for me since this time last year. I’m not saying this ought to guide our monetary policy. I’m just saying that core CPI doesn’t track the cost of living.