“The unemployment rate is expected to remain above 7½ percent through next year; if that happens, 2014 will be the sixth consecutive year with unemployment exceeding 7½ percent of the labor force—the longest such period in the past 70 years” (emphasis added).
What a telling sentence in the latest Congressional Budget Office Report released February 5, 2013. It comes on the heels of the Obama administration reporting that during the last quarter of 2012, the economy shrank by an abysmal 0.01 percent. With another consecutive quarter of negative GDP, we are back into a recession. How does the job picture look?
After massively increasing government spending over the last four years to the point where for the first time, America has had four straight years of trillion dollar deficits, the latest job report showed the unemployment rate (U-3) rose from 7.8 percent to 7.9 percent. To put this job number in perspective, Obama took office with an unemployment rate at 7.8 percent. But the unemployment rate does not tell the whole story. In fact, it is quite misleading. If you include those Americans who are working part time just to make ends meet, the unemployment rate climbs to 14.4 percent.
As the Investors Business Daily correctly points out, “[The unemployment rate] fails to account for the exodus of 8.5 million from the labor force under Obama.” There are now 89 million Americans who are not participating in the labor force, the lowest level since 1981. But even more devastating is the following fact. According to the publication, there are now “4.7 million long-term unemployed—nearly twice as many as when Obama was first sworn in. At 35 weeks, the average length of unemployment is far higher than any time between World War II and the Obama era.” To provide perspective, America is “3.2 million jobs shy of the previous employment peak of five years ago… It took an average of just 24 months to regain all the jobs lost in the previous nine recessions. But at the current Obama job-creation pace, it will take about 80 months to regain those lost jobs.” In other words, it would take seven years to recover all of the jobs lost over the last four years. Sounds like a brighter future to me.
So with all of the massive government spending, does Obama have anything to show for it? The report continued, “If the laws that govern taxes and spending do not change, federal debt held by the public will reach 76 percent of GDP by the end of this fiscal year, the largest percentage since 1950.” The date is 1950 because America was winding down our military build up during World War II. This is what happens when one borrows close to 46 cents out of every dollar you spend just to fund the government and the national debt has now reach $16 trillion.
Imagine for a moment that you live in an apartment and your rent was $100. You go to pay the rent but you only have $50 in your pocket. So you decide to borrow $50 from a friend promising to pay them back with interest. Now imagine by the end of the year you go to pay the rent and you only had $24 dollars. Instead of borrowing $50 from your friend, you need to borrow $76 dollars to pay rent, plus interest. After each month, you have to borrow more and more just to ensure you don’t lose your apartment. Isn’t this a sign of bankruptcy? Isn’t this completely unsustainable? Welcome to Obama’s America. On top of your regular student loan debt, Obama has added more than $50,000 of debt for every citizen in America with interest. How much is the interest? Almost equal to the entire defense budget! This is debt we will have to pay back as the next generation to countries like China or Japan. The president is mortgaging our future right before our eyes. What is more infuriating is that he has no plan to even put us on a path to a balanced budget.
In summary, this is what liberalism looks like in practice. Obamanomics has failed and always will fail.