The simplistic way to approach today’s Unemployment Report would be to simply point the finger. Certainly, that would be the logical reaction to what this president and his congress have done to the American economy.
10.2% unemployment is bad enough for the country and its workers. However, a deeper investigation into the Department of Labor’s reports this week uncovers a more disturbing trend that spells disaster for the economy moving forward if it is not corrected.
Aside from perhaps the GDP, employment numbers are the single most prominent market-moving indicators on the board. They provide comprehensive reports as to the state of the economy i.e. how many people are looking for jobs, how many people have jobs, what workers are getting paid and how many hours they are working.
Given those variables, many people have asked me how GDP can increase while unemployment continues to surge. The answer rests with the anti-business policies of the executive and legislative branches, as well as the outstanding performances of those still contributing to the economic progress of the economy.
According to the Department of Labor, the American worker increased productivity by a whopping 9.5% during the 3rd Quarter. This figure far surpassed the consensus expectation of 6.3%. At the same time, unit labor costs decreased by an equally-whopping (-)5.2%, also exceeding the market consensus of (-)3.9%. In other words, the American worker is exceeding expectations to keep this economy afloat, while employers’ abilities to add to the workforce and lift this country out of recession is being equally hamstrung.
This brings the discussion to the federal government’s role in this process. From the time they took office, this congress and president wasted money on a so-called “stimulus” to expand the size of government in lieu of implementing policies to stimulate private-sector growth and allow businesses of all sizes to capitalize on the strength and productivity of the American worker.
Now, they debate the passage of a nearly $2 trillion government program that will ensure the destruction of the Insurance Industry and the hundreds of thousands of workers’ jobs that accompany it. Once what amounts to a national health care system is passed and signed, the time it will take for investors to withdraw their support from the insurance industry will be able to be clocked with an egg timer.
This is not a partisan issue. This is an economic issue. Members of all parties rely on private-sector employment to feed their families and pay their bills. The American worker cannot continue to carry this economy without help. They need new investment on the part of the businesses that employ them – and those businesses can’t expand their workforces when they are paying new taxes for government health care programs, Cap and Trade taxes, and any other government-mandated drain on their resources.
If there is an issue that RedState readers need to be reinforcing, it is the disastrous results of the assault on this nation’s economy and its businesses. Leave the code words (communism, socialism, etc.) in the vault for now. Many people dismiss this as hyperbole and rhetoric. You will make them understand the gravity of Democrat policies when you show them precisely how those policies are destroying their economic futures. When that happens, you will have the environment you need for a conservative realignment and true change the country can believe in.