Freedom Line Blog

The recession is not getting better.  In a “snap” analysis by Reuters the following lowlights from the jobs front is not encouraging.

* Temporary jobs dropped by 5,600, reversing a streak of strong gains that economists had viewed as a hopeful sign that hiring would pick up.

* Normally, companies load up on temps at the beginning of a recovery when they are waiting for confirmation that growth is gaining momentum. This recovery has been unusual in that temporary hiring did not herald a jump in private hiring.

* Private hiring totaled a lackluster 71,000 in July, below expectations for 90,000 in a Reuters poll. June’s tally was revised down to just 31,000 from an initially reported 83,000.

* Government hiring was another worrisome sign. The loss of 202,000 positions reflected the loss of 143,000 temporary Census jobs.

* The total also included 38,000 jobs lost in local government. For most municipalities, the fiscal year began on July 1, and government associations have been warning that huge budget gaps would force aggressive job and spending cuts. July’s report suggests local governments got a quick start.

With the evidence mounting of a prolonged economic downturn, it’s time for someone – Republicans, Tea Parties, etc. – to start making the moral case against the liberal approach to (mis)managing the economy.  People are losing their ability to support themselves independently, making welfare a more attractive – and necessary – option for increasing numbers of middle class workers.  Not only is expanding the welfare state unsustainable, it harms the entrepreneurial spirit that makes economic recovery possible.

In order for America to get back to work, the incoming wave of office holders this November needs to remove the barriers to productivity that are killing employment growth.