Freedom Line Blog

Economists projected that the U.S. economy would add 160,000 new jobs last month.  Instead, the Labor Department announced today that we only added 69,000.

Additionally, the unemployment rate increased to 8.2% in May from 8.1% in April.  That makes 40 consecutive months above 8%, a new record.  Keep in mind that the Obama Administration claimed we wouldn’t reach 8% in the first place if his failed “stimulus” spending bill passed back in early 2009.

This announcement also arrives one day after the Commerce Department announced that the American economy grew only 1.9% in the first quarter of 2012, short of its initial 2.2% estimate.

More broadly, the economy must add 200,000 jobs each month just to keep pace with population growth and materially reduce the unemployment rate, and today’s report follows a disappointing 115,000 number in April.  The Obama Administration claims that the last recession was “the worst since the Great Depression,” but that’s false.  The early-1980s recession was substantially worse – higher unemployment, higher inflation and higher interest rates.  President Reagan’s policy of lower taxes and less regulation, however, rapidly reduced unemployment from 10.4% to 6.7% in the three years following the effective date of his tax cuts in January 1983.  In contrast, Obama’s policies of higher spending, higher deficits, higher taxes and more regulation have caused the worst cyclical recovery since the Great Depression.