This morning’s jobs report is proof of a genuine economic crisis across the country. This, in turn, likely triggered a full-blown political crisis in the White House. First, here is the dismal, disappointing report:

U.S. employment growth ground to a halt in June, with employers hiring the fewest number of workers in nine months, dousing hopes the economy would regain momentum in the second half of the year.
Nonfarm payrolls rose only 18,000, the weakest reading since September, the Labor Department said on Friday, well below economists’ expectations for a 90,000 rise.

The unemployment rate climbed to a six-month high of 9.2 percent, even as jobseekers left the labor force in droves, from 9.1 percent in May.

First, this is proof that America’s economy isn’t growing the way hurting families need it to. Nonfarm payrolls rising by a scant 18,000 is terrible. While that news is terrible, this information indicates that the economy is weaker than this administration is leading us to think:

“The message on the economy is ongoing stagnation,” said Pierre Ellis, senior economist at Decision economics in New York. “Income growth is marginal so there’s no indication of momentum.

The government revised April and May payrolls to show 44,000 fewer jobs created than previously reported.

Nonexistent income growth says that people are just treading water. That’s a far different picture than the White House has tried painting. Readjusting the jobs report downward is proof that employers aren’t buying the Obama administration’s happy talk.

Political Consequences

The economy is the top concern among voters and will feature prominently in President Barack Obama’s bid for re-election next year. So far, the economy has regained only a fraction of the more than 8 million jobs lost during the recession.

“Today’s report is more evidence that the misguided ‘stimulus’ spending binge, excessive regulations, and an overwhelming national debt continue to hold back private-sector job creation in our country,” House of Representatives Speaker John Boehner said in a statement.

This isn’t the news that this administration needs. Mr. Axelrod knows that they’ll be history if the unemployment doesn’t improve dramatically over the next year. Raising $1,000,000,000 to spend on the campaign won’t matter if unemployment stays this high.

Rep. Thad McCotter issued this statement on this morning’s jobs report:

Over sixteen million Americans are unemployed. Over thirty million Americans are unable to pursue better jobs because of the failed stimulus and other irresponsible, job-crushing policies. Inflation is rising. Real wages are declining, everywhere except at the Obama White House. To Mr. Obama and Mr. Romney’s big government and bailout banks, this is an economic statistic. To Main Street, this is real suffering. This must and will end.

“Like every one else in this age of international, global competition, big government and the bailout banks must be restructured for the future, and taxation and regulatory reform must be implemented, so our entrepreneurs and workers can immediately grown our economy and commence an era of unprecedented prosperity for the American people.”

This isn’t rocket science. Capital isn’t being put at risk because businesses are worried about the potential costs that Obamacare and the Dodd-Frank bill will impose on them. Until those things are repealed, this economy will stay stagnated.
As usual, Ed has it exactly right in this post:

This doesn’t even qualify as spin. This is denial on the scale of Baghdad Bob. The “prism” of GDP and the unemployment rate are precisely how Americans evaluate the economy. They don’t give a damn if the President makes decisions “based on me and my family” if those decisions turn out to be disastrous, and right now, that’s the case presented in the latest economic slide. Plouffe’s argument seems to be that people will vote for caring incompetence, and while that may be the only argument left for Obama’s re-election, Plouffe and company are about to find out that denial isn’t exactly a winning strategy.

Plouffe’s statements seemed tin-eared at the time he made them. Today, they seem downright insulting to America’s intelligence. They know President Obama’s economic plans have had ample time to put people back to work. Plouffe and Axelrod can buy all the clever ads they want. They can’t counteract the negative news that this administration isn’t up to the job of creating jobs.

As if that isn’t enough bad news from the jobs report, here’s more:

Details of the report showed widespread weakness, though factory payrolls rebounded 6,000 after contracting in May for the first time in seven months, with the recovery reflecting a step-up in motor vehicle production.

Construction employment fell 9,000 last month after declining 4,000 in May. Government employment declined for an eighth straight month as municipalities and state governments continued to wield the ax to balance their budgets.

The only remedy to this jobs crisis is to put President Obama on unemployment next November. Anything short of that will lead to declining employment throughout the rest of the nation.

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2 Responses to “Jobs Crisis in Nation Leads to Political Crisis Inside White House”

  • walter hanson says:


    I think you’re missing something important which you’ve barely mentioned. Employment is falling among government workers now. The stimulus bill delayed that. With the pubic understanding that needs to be done the unions continuing to promote government spending is helping to drive their own members away. More important in states which Obama barely won and might need to win such as Wisconsin, Ohio, Indiana, Virginia, and Florida what have the Repubican governors been doing?


    Walter Hanson
    Mnneapolis, MN

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