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President Obama's Economy Hits Another Speed Bump

I speculated recently that the worm may be turning as it relates to the Obama administration's political capital. The near Teflon like protection that a fawning press afforded him is being overwhelmed by events that have no regard for lofty rhetoric, such as job losses:

WASHINGTON (MarketWatch) -- The U.S. economy shed jobs at a faster pace in June than in May, suggesting that the turnaround in the economy may take longer than expected.

Nonfarm payrolls shrank by 467,000 in June, higher than the 325,000 decline expected by economists surveyed by MarketWatch and the 322,000 jobs lost in May.

The unemployment rate ticked higher to 9.5% in June from 9.4% in the previous month. Economists had expected the unemployment rate to rise to 9.6%.

There was only a very slight 8,000-downward revision to payroll losses in April and May.
Since the recession began in December 2007, payroll employment has dropped by 6.5 million.

Construction, manufacturing and professional and business services reported heavy job losses in June. Construction payrolls fell by 79,000, factory payrolls fell by 136,000, and professional and business employment fell by 118,000.

Democrats are already talking about a second stimulus package. That's just brilliant. How did that first stimulus package work out for you? And don't forget that under the Bush administration in 2008 a stimulus package was approved. That one didn't work very well either.

Those unemployment numbers released today contain some chilling results. For example, note the business and professional job losses. While Democrats love to play class warfare and belittle the misfortune of the rich, they refuse to acknowledge that those professionals are the highest wage earners. Except that they aren't earning wages now, hence no tax receipts. Get your erasers out and prepare to recalculate the Obama deficit.

Update: Check out this chart


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Comments (28)

as bad as the unemployment ... (Below threshold)

as bad as the unemployment numbers are, there is another issue lurking that they actually mask:

Business (and even governments like Calif.) are cutting back on the HOURS for their employees...hoping to ride out the recession/depression without actaully laying them off. This artifically keeps the unemployment numbers from getting even worse, but doesn't stop the INCOME TAX revenue from dramatically getting worse!

Further, as employers cut back on the hours of their employees, those employees have less DISPOSABLE cash...so they buy less. Those stores then have to cut back on THEIR employees time and/or wages...and so on.

Death spiral?? Only if they raise tax rates and impose fines on energy users. Oh wait...

1/20/2009: The beginning of... (Below threshold)
GianiD:

1/20/2009: The beginning of an error!

Reaction from liberals: "It... (Below threshold)
Hermie:

Reaction from liberals: "It's Bush's fault!"

Obamalala will not do what ... (Below threshold)
MPR:

Obamalala will not do what needs to be done. He would have to admit that his vision of a socialist La La Land is just that, La La Land. His delusions of grander about being the "One" to achieve this utopia that all of us, according to him, long for would crumble. His rhetorical, echoing call for justice is falling from his teleprompter to the floor because history has proved over and over that only an economically and politically free country can guarantee it.

Well the answer is obvious,... (Below threshold)
GarandFan:

Well the answer is obvious, MORE PORK! And hire some more government workers!

Rdemember how he promised t... (Below threshold)
Hermie:

Rdemember how he promised those RV workers in Elkhart IN how he was going to save their jobs if his Porkulous plan was passed>

He didn't bother to mention to them that his "cap and tax" plan would force RVs to become more expensive to buy and maintain; besides being plain unaffordable to most of the country.

His 'stimulus' plan would burden them, their children and grandchildren with enormous debt which will keep them from bettering their lives because they have to feed the debt monster.

They won't have the same quality healthcare system because his plan will have a bunch of Soros-backed 'czars' determining if they are worth keeping alive.

Tom Paine famously wrote of... (Below threshold)
OLDPUPPYMAX:

Tom Paine famously wrote of summer soldiers and sunshine patriots just prior to the Battle of Trenton. So moved was Washington by Paines' prose that he ordered the entirety read to his troops. The next days battle marked a turning point in the fortunes of the American army and the nation at large, for coupled with a smashing victory at Princeton barely a week later, the morale of a dispirited public was dramatically lifted. The army stayed together and new recruits enlisted throughout the country. Sooner or later the American PEOPLE will once again have to take responsibility for their own liberty and destinies. Reliance on politicians, law, even the Constitution to protect our rights from the tyrannical doings of criminals in Washington and elsewhere has lead to the most frightening loss of liberty in the nations history. We can no longer afford to relax in the "sun", hoping that John McCain, Orrin Hatch or any of the host of spineless traitors in DC will see to our interests. The question is, when will the people act? Who will lead? And are there enough actual Americans left to do the job!

I am convince that he wants... (Below threshold)
mag:

I am convince that he wants to ruin this country. It appears to me that he has a big gripe against America. He is very smooth and with help of the media he managed to fool half of the nation...but he is a disaster on all fronts...economy, foreign policy, picking judges, spending, defense and on and on it goes.

OLDPUPPYMAX: "The questi... (Below threshold)

OLDPUPPYMAX: "The question is, when will the people act? Who will lead?"

if you're so inclined, I write a weekly (every Friday) column on my bejohgalt site titled: "The Cost of Freedom". your comment above is the subject of this week's column. it'll be up first thing in the morning.

Who will lead? And where is our Thomas Jefferson to pen a new Declaration of Independence??

Wait until Obama energy pol... (Below threshold)
Wayne:

Wait until Obama energy policy take effect. He already cut off some oil exploration and we will start feeling that affect. The Cap and trade would devastate the economy. I still think one of the major factors although "not the only" I repeat "not the only" was the great spike of energy prices last year. Without affordable energy the economy and peoples lifestyle will suffer.

Being anti energy and anti business gets you exactly that, less energy and less business.


Interesting to notice that ... (Below threshold)

Interesting to notice that off loading half a million jobs in June has a much lesser effect on the unemployment rate than losing 400,000 in May.

Book cooking, anyone?

Recall anyone?... (Below threshold)
914:

Recall anyone?

BTW, check out the latest o... (Below threshold)
hermie:

BTW, check out the latest on the Won's health care czar. She's been tight with all sorts of crooks within the medical care industry; but like "Skippy the Car Czar" she can waltz in without anyone questioning her 'qualifications'.

Job losses? Don't look thro... (Below threshold)
Hank:

Job losses? Don't look through that door.
It's jobs saved that matter.

More seriously, Obama and the dems not only do not have a clue how to revive the economy, they simply do not care.

I think Obama is more concerned with his historic role. If the US economy/society becomes more socialist and degrades accordingly, he'll be fine with that.

Why he might laugh all the way to the bank when he's done.

467,000 jobs cremated or sh... (Below threshold)
tomg51:

467,000 jobs cremated or shaved.

Book cooking? Unlikely. T... (Below threshold)

Book cooking? Unlikely. The percentage is going to depend on how many are looking for work. At any time the number goes up or down, it can fluctuate even if not a single person gets or loses a job compared to the previous report. More loses compared to the unemployment rate moving less would mean less are looking for work, also a bad thing as it probably means more people are comfortable living off of Obama's teat (aka the rest of us) and/or people on the edge (2nd income earners, students, etc) are just saying 'forget it' for now and dropping out of the search. Unless I'm mistaken, before the Democrats ratcheted up the spending that has businesses panicked, job losses were moderating, but the unemployment rate was rising disproportionately because more people, seeing the improving conditions (that are now eroding) were re-entering the job market but did not yet have employment. If the rate drops without an increase in employment, then we're REALLY screwed and might as well call ourselves France.

Kindly ignore typos :)... (Below threshold)

Kindly ignore typos :)

Obama said THIS yesterday a... (Below threshold)

Obama said THIS yesterday at his "townhall meeting":
"It's [stimulus Bill] done its job"

I guess "its job" was to put an additional 2 MILLION people out of work!

How much longer will the pr... (Below threshold)

How much longer will the press continue to fawn? Helen Thomas just attacked Gibbs over their fake events and pre-staged press conferences. HELEN THOMAS! And after she stood up others apparently joined her in going after Gibbs.

(No, it doesn't mean I like the racist old cow, now)

the image of the "brave" Wh... (Below threshold)

the image of the "brave" White House Press Corps hiding behind HELEN'S skirt is priceless!! :)

Helen Thomas!! Wow! The old... (Below threshold)
914:

Helen Thomas!! Wow! The old grey Mare just aint what She used to be.

Just saw the riveting press... (Below threshold)
Trajan:

Just saw the riveting presser Obama just gave
in the rose garden. He looked like a guy
driving on four flat tires telling us he's
just about ready to enter the Indy 500. Had
SEIU and ACORN logos all over his sputtering
clunker, gas tank on empty. But he's claimed
the pole position.

Barry's approval numbers ar... (Below threshold)
GarandFan:

Barry's approval numbers are beginning to tank, especially among independents. Could it be that people are finally beginning to wake up? Too bad they weren't awake last Nov 4th.

ANOTHER friggin' press conf... (Below threshold)
JLawson:

ANOTHER friggin' press conference?

Well, I guess he can do less damage there than he can actually 'help' writing some other misbegotten piece of legislation...

Could someone PLEASE tell him that he's been elected, and he can stop trying so damn hard?

Some people whose opinions ... (Below threshold)

Some people whose opinions I trust are saying that these "job losses" are not cases of "jobs vacant for a while", but are rather "jobs gone", presumably forever.

The President is not, I do ... (Below threshold)

The President is not, I do believe, subject to recall.

And think for a moment about the consequences of a recall of this president.

Once he gets the Supreme Court "fixed", my guess is, it will take a serious re-enactment of the events at Lexington Green to get out from under his thumb.

(He needs to get the Supreme Court "fixed" so he does not have a recurrence of the Honduras Problem.)

Where I grew up, they are c... (Below threshold)

Where I grew up, they are called walls. Not Speed Bumps

Recent presidents in order:... (Below threshold)
RScott:

Recent presidents in order:
Reagan, Truman, the other ones, Nixon, Carter, US Grant's long moldering body, ..., Obama.




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