Do you recall when we reported that the jobless rate had risen to 8.2% back in June? Turns out, not much has changed.
According to the most recent BLS numbers, unemployment has remained locked-in at the same level since the last report. Despite this lack of change, President Obama described the current malaise as “a step in the right direction.” Mitt Romney had far more accurate words: “This kick in the gut has got to end.”
Romney was probably referring to the Obama Administration’s record of job creation. Unemployment has remained above 8% for the past 40 months – nearly 3 1/2 years.
According to the President himself, unemployment was supposed to be around 6.5% right now – at least, that’s what he said in 2009 after congress passed his $900 billion stimulus package. Obviously, that’s not the case. In fact, just to get unemployment down to 8% by election day, the economy would have to add about 220,000 jobs each month from now until November – something most economist see as highly unlikely.
As we reported last month, the jobless rate has remained high as a result of the fast-approaching “fiscal cliff” here in the US. Politicians in Washington will be tasked with raising the debt ceiling once again as congress will require additional permission to borrow more money it doesn’t have to pay for more programs it can’t afford. The last time this took place, the United States lost her AAA credit rating for the first time in history – an embarrassment Obama will likely want to avoid this time around.
Taxes are also scheduled to go up next month, despite an Obama campaign promise to never raise them.
While a struggling Europe and slowing Chinese demand are also having an impact on the current “zombie economy,” the irony of the lead role the national debt is playing in hampering job growth is too obvious to overlook.
Mr. President, do you remember when we told you were spending too much? Looks like you should have been listening.