Sunday, June 6, 2010

Jobs and the President

Last week, two days before the Labor Department's official release of May employment data, the President was gushing over the employment numbers that were soon to be released. Seemed like an abuse of "insider trading" rules for the President to give an early indication that the number would be "terrific." Market analysts, following the President's lead, began to forecast 500,000 to 750,000 new jobs for the May report. The stock market rallied 230 points based upon Obama's presumed leak of the wonderful employment report. But, Friday, as night follows day, the report was released at long last. The result: disaster!

41,000 private sector jobs were created in the month of May. If that pace continues, the unemployment rate will find its way to 20 percent in time. The total number of jobs created was 431,000 but that included 411,000 temporary Census workers, whose jobs disappear soon.

It is obvious, in retrospect, that the President thought this employmnent report was a "good" report, 431,000 new jobs, and is not bothered by the fact that 95 % of the new jobs are temporary Census worker jobs. This reaction by the President once again demonstrates his contempt for the private sector. It doesn't bother the President that the private sector is not creating jobs. He seems to think another stimulus (pumping up the compensation of public sector employees) is the right answer). The combination of Obama's contempt for private enterprise and free markets and his lack of understanding of economics is shining through.

Meanwhile, when the financial markets discovered the truth, the market suffered once of its worst days in history, dropping 325 points. The market cannot be fooled, even by a glib and ignorant President.