Freedom Line Blog

Below is one of the latest cartoons from two-time Pulitzer Prize-winner Michael Ramirez.

View more of Michael Ramirez’s cartoons on CFIF’s website here.

Zero.  That’s the number of net jobs created in America last month according to the Labor Department’s monthly update, and the unemployment rate remained at 9.1%.

We are now more than two years since the recession officially ended in June 2009, and at the stage where the Obama Administration predicted that his trillion-dollar deficit spending “stimulus” would reduce unemployment to approximately 6% after topping out at 8% all the way back in the fall of 2009.  Instead, we suffered a post-war record number of months over 9%, and it continues to fester there.  By way of background, keep in mind that economists generally agree that a minimum of 150,000 to 200,000 jobs must be added to the American economy each month just to keep pace with natural population growth.  Also consider that economists had forecast a rise of somewhere near 100,000 jobs for July.

In contrast, in the same 30-month period following the effective date of President Ronald Reagan’s tax cuts in January 1983, unemployment plummeted from 10.4% to 7.4%.  We know what economic policies actually work.   What hath the opposite approach wrought?

This defines cognitive dissonance.  The Obama Administration continues to scratch its collective head, wondering why its record deficit spending “stimulus” and big government onslaught has failed to create jobs.  Meanwhile, its own Department of Justice sues an iconic American company that creates them.

Just today, AT&T announced that it is relocating thousands of jobs from overseas back to American shores.  But also today, the Obama Department of Justice – you know, the one ultimately behind the disastrous “Operation Fast and Furious” – sued to block the proposed private merger between AT&T and T-Mobile.  Ponder that irony for a moment.  The Obama Administration, which has done so much to interfere with job creation since the recession officially ended all the way back in June 2009, is suing an employer that at this very moment is orchestrating the return of thousands of jobs to the United States.

Perhaps we shouldn’t find this surprising.  After all, the Obama Administration is also in the process of persecuting Boeing, America’s largest exporter, simply for electing to locate a manufacturing plant in South Carolina.  But that doesn’t make its behavior any less despicable or destructive.  If Obama truly wants to prove to the electorate that he seeks economic recovery, he must reverse this policy course within his administration.  Immediately.

Even for Barack Obama’s supporters, this has to be getting old.

Today, responding to a question about an American economy still struggling after almost three years of deficit-driven Obama “stimulation,” he went back to the “Bush Card” with radio host Tom Joyner:

George Bush left us with a $1 trillion deficit, so it’s a lot harder to climb out of this hole when we don’t have a lot of money in the federal coffers.”

There are several problems with President Alibi’s rationalization.  Among other things, (1) the recession officially ended all the way back in June 2009, (2) the money in those “federal coffers” to which he refers actually reached an all-time high under Bush in 2007 (several years after the Bush tax cuts and well into the Iraq and Afghan wars that Obama now scapegoats) and (3) nothing seems to have stopped him so far from spending trillions of dollars that we don’t have.

But forget about those realities for a moment.  On a more basic moral level, what does it say about Obama as a man that this is what he continues to offer the nation to justify his performance and his request for a job extension?

You’ve heard of “flash mobs,” the growing phenomenon of thugs descending upon, assaulting and robbing convenience stores or vulnerable people on the street? Well, “flash elections” are Big Labor’s economic version of flash mobs.

Flash elections, or “ambush elections,” reference a proposed rule that would shorten the election window in union organizing campaigns to as little as 10 days.  Big Labor, which we noted this week elevates its own political power over American jobs and employee welfare, loves the ambush election proposal and is currently pushing it within Barack Obama’s  rogue National Labor Relations Board (NLRB).  Ambush elections are dangerous for many reasons, including the fact that they would drastically limit employers’ free speech window and ability to present both sides of the story to employees.  In contrast, union bosses would have many months to present their skewed arguments to employees without even allowing employers to become aware that a union organizing campaign was underway.  Moreover, ambush elections are a toxic “solution” in search of a problem, considering that the current median election time is 38 days, and 95% of elections already occur within two months, hardly an eternity.

Accordingly, CFIF is proud to announce that it has joined the Coalition for a Democratic Workplace and 275 other employers and associations in petitioning the NLRB to withdraw this destructive proposal.  Big Labor and the Obama NLRB have already killed enough jobs.  We simply cannot afford to lose even more due to their ideological shenanigans.

In this week’s Freedom Minute, CFIF’s Renee Giachino discusses how everyday American workers are being used as political pawns to advance the job-killing agenda of big labor unions.  

Recently, I wrote about the Social Security Trust Fund being a piggy bank for other federal spending programs.  In return, federal spenders put worthless IOUs back in piggy with an implied promise to pay back the debt with higher taxes in future years.

Now, there is word that Social Security Disability Insurance – yet another expense drawn from the empty retirement Trust Fund – will go bankrupt by 2017.  The reason for the rapid insolvency of disability insurance is simple: eligibility for disability can begin before reaching retirement age.  Per the Associated Press:

Applications are up nearly 50 percent over a decade ago as people with disabilities lose their jobs and can’t find new ones in an economy that has shed nearly 7 million jobs.

The more President Obama’s Washington dithers on enacting policies to spur economic growth, the more unemployed people will be forced to find money wherever they can.  The vast majority of Americans want to work, but Obama’s job-killing policies just aren’t giving them the chance.

It would be an unnecessary irony if a liberal like Obama presided over an austerity government that not only raised taxes, but also cut services like Social Security that liberals love.  Yet that is the path we’re on as a recessed economy lurches from market plunges to debt downgrades to a contracting job market.

We need an “opportunity president,” and this one surely isn’t it.

So almost three years after Barack Obama was elected President, he promises to unveil a “specific jobs plan” next month.  Very gracious of you, Mr. President.  Apparently, one of his brilliant ideas is to create an entirely new bureaucracy within the federal government, a “Department of Jobs.” Never mind that we already have a Labor Department, a Commerce Department, and so on.

But here’s something for Obama to ponder.  As noted today in The Wall Street Journal, “Over the past five years, Texas has added more net new jobs than all other states combined.”  Naturally, Team Obama and the desperate political left are already attempting to discredit Texas’s economic success.  But the facts, unsurprisingly, refute their claims.  For instance, for all of the attempts to mislabel those new jobs as low-wage, the Bureau of Labor Statistics “pegs the median hourly wage in Texas at $15.14, 93% of the national average, and wages have increased at a good clip:  in fact, the 10th fastest state in 2010 at 3.4%.”  Keep in mind the lower cost of living in Texas, where those wages therefore go further.

So as Obama ponders a “Department of Jobs” during his extended Martha’s Vineyard vacation while the economy stumbles, perhaps he will experience an epiphany.  Namely, that he should do at the federal level what Texas has done at the state level – bring legal reform, reduce taxes and allow the private sector to flourish.

Updating yesterday’s comment on the Verizon landline employee strike, in which the union up and walked away from negotiations, picketing workers are now alleged to have vandalized company equipment.  Strikers have also openly admitted stalking and harassing other Verizon workers during service calls.  According to striking technician Richard Aulicino of CWA Local 1109, “We cannot stop them from doing their job, but we can harass them while they are on the job.”

Stay classy, union thugs.  Sounds like a guy who truly cares about his trade or his job.

And some people wonder what could go wrong with proposed card-check legislation, which would eliminate the secret ballot in union elections and allow union representatives to stalk employees even at home?

In a rare moment of candor yesterday, White House Press Secretary Jay Carney admitted, “the White House doesn’t create jobs.”  That’s a refreshing contrast from Obama’s previous “jobs saved or created” nonsense, but he can certainly say that again.

Today, the Labor Department reported that unemployment remained essentially unchanged last month at 9.1%, with only 117,000 new jobs created.  Keep in mind that the economy needs approximately 125,000 new jobs per month just to keep the unemployment rate steady, and 200,000 per month to reduce the rate by a single percentage point over an entire year.  In other words, the economy continues to create far too few jobs to significantly reduce the unemployment rate.

Also keep in mind that Obama promised in February 2009 that if we passed his “stimulus,” unemployment would top out at 8% back in the fall of 2009, and be down to around 6% by now.  Instead, we have witnessed a post-war record number of consecutive months at or above 9% unemployment.  Over the same 30-month period that have passed since Obama’s “stimulus” promise, Ronald Reagan’s policies reduced unemployment from 10.4% to 7.1%.

The White House may not create jobs, Mr. Carney, but history shows that its policies can foster growth or, in your case, wreak havoc.

Below is one of the latest cartoons from two-time Pulitzer Prize-winner Michael Ramirez.

View more of Michael Ramirez’s cartoons on CFIF’s website here.

In an interview with CFIF, John Ransom, finance editor for Townhall.com, discusses the debt ceiling debate, how tax increases will negatively impact jobs, and the latest “tax” imposed by teachers’ unions to help re-elect President Obama.

Listen to the interview here.

City Journal’s Nicole Gelinas describes the Bush-era “TARP” bailout as a massive case of moral hazard.  With the financial sector able to fob off its bad debts to the American taxpayer while suffering almost no consequences, it’s no wonder the jobless rate is not recovering.

The politicians we elect have three choices—the same choices they had four years ago. They can admit that this debt isn’t worth much and allow the financial sector to bear the consequences. They can hope that the Fed tries to use inflation to raise the price of everything else, making the debt seem a lighter burden in comparison. Or they can maintain their silence, letting the financial sector take another half-decade or more to make enough money on new ventures so that it can finally admit what it should have admitted back in the fall of 2007: bad debt is never good. At least the Fed acknowledges this strategy: it says that it’s using “time” to manage toxic securities and “minimize disruption to the financial markets.” But prolonging government control of financial markets just prolongs investors’ uncertainty.

If Congress and President Obama, as well as the candidates who would like to succeed the president in 2013, maintain their silence, people should at least understand that the lousy jobs numbers are no mystery. They are the result of a policy that Washington has willfully chosen. As the Fed notes, the cost of this policy isn’t measured in dollars but in something more precious: time. Washington’s refusal to confront the debt problem is costing millions the most productive years of their lives.

Responding to this morning’s terrible unemployment report, President Obama mused, “We still have a long way to go and a lot of work to do.”

No, Mr. President.  That’s precisely what the nation fears.  We’ve already allowed you to go too far and do too much, but you’re apparently not getting the clue.

For the month of June, unemployment unexpectedly rose to 9.2% and added a negligible 18,000 jobs, far below the 150,000 that economists had expected.  That means the unemployment rate has risen from 7.8% when Obama signed his massive government spending “stimulus” to 9.2% over two years later.  Keep in mind that his administration promised at the time that the “stimulus” would cap unemployment at 8% in the fall of 2009, and be down to around 6.5% by now.  Instead, it rose all the way to 10.2% and has remained above 8% for a post-war record 29 consecutive months.

Ignoring that, Obama and liberal pundits like Ezra Klein appearing on MSNBC’s “Morning Joe” claimed that what we need is even more of the same.  At what point do they finally get the signal?

Throughout the Obama Administration, the Environmental Protection Agency (EPA) has imposed innumerable costly regulations that threaten American jobs and impede economic recovery.  During Obama’s Twitter “townhall” earlier this week, a good question would have been, “Why does your administration continue to impose a regulatory agenda that squeezes small businesses, which create most new jobs in America?”  Unfortunately, but unsurprisingly, that question did not come up.  Regardless, it’s a sad state of affairs when administrative agencies, the most hyperactive part of our federal government, do so much to recklessly increase the cost of business and to reduce economic momentum.

Now, the scientific methods the EPA employs to reach its conclusions on a wide array of new federal regulations have been called into question by the National Academy of Sciences (NAS).  In a letter to EPA Administrator Lisa Jackson, Senators David Vitter (R – Louisiana) and James Inhofe (R – Oklahoma) from the Senate Committee on Environment and Public Works cited scientific deficiencies identified by the NAS within the EPA’s assessment of alleged formaldehyde risks.  Accordingly, the Senators demanded an immediate answer on whether the fundamental scientific problems raised by the NAS warrant reconsideration of all EPA risk assessments that use the same methods.  That includes the EPA’s ongoing revision of its National Ambient Air Quality Standards for ozone, scheduled for release later this month.

As most Americans are beginning to realize, some fresh element of sanity is needed within the federal regulatory process to ensure that government regulations are based solely on sound science, and that American jobs and growth do not continue to be gratuitously sacrificed at the altar of the Obama Administration’s reckless partisan agenda.

The letter from Senators Vitter and Inhofe to EPA Administrator Jackson can be read in full by clicking here.

Below is one of the latest cartoons from two-time Pulitzer Prize-winner Michael Ramirez.

View more of Michael Ramirez’s cartoons on CFIF’s website here.

So much for attempt number two on the “Recovery Summer” that the Obama Administration promised one year ago.

Today, the Labor Department announced that weekly initial unemployment claims jumped to 429,000, an increase of 9,000 from last week’s 420,000.  Even more ominously, Federal Reserve Chairman Ben Bernanke explained yesterday that the Fed has already done all it is prepared to do to increase growth, and expressed the same sort of cluelessness as Obama on why their “stimulus” has failed:

We don’t have a precise read on why this slower pace of growth is persisting.”

The Fed also issued “fairly significant” reductions in its 2011 growth forecast to 2.9% next year (down from a 3.3% growth expectation in April, and from 3.9% in January).  Another “Recovery Summer” like this, and Obama will be borrowing Jimmy Carter’s sweater for his own “Malaise Speech.”

Below is one of the latest cartoons from two-time Pulitzer Prize-winner Michael Ramirez.

View more of Michael Ramirez’s cartoons on CFIF’s website here.

If you’ve ever had the misfortune of drifting off the highway, chances are you’ve been instantly reminded by the deep grooves on the other side of the white line.  When your car crosses over them a deep, sickening rattle shakes your vehicle.  It’s a warning that you’re about to leave the road and enter a crash zone.

Most people have to fight to urge to overcorrect.  Austan Goolsbee, President Barack Obama’s chief economist, would probably reclassify the loud death tones as just “bumps along the road” and keep driving.

That’s effectively what Goolsbee is doing by claiming that the nearly 80 percent drop in jobs created from April to May are just 200,000 or so “bumps” in the White House’s empirically indefensible road to recovery.

Like an absent-minded professor ignoring the warning signs of an impending car wreck, Goolsbee and Co. are driving the American economy off the road and into a ditch.  Unemployment is anchored at 9.1 percent.  The stock market is falling with every new round of bad economic news.  Rating agencies are downgrading America’s economic outlook because of its lack of fiscal responsibility.

There are two ways to stop bumping over the warning grades.  Either get back on the highway or leave the pavement entirely.  By sticking to his present course, President Obama is steering the nation’s economy into a serious wreck.

This morning, the Labor Department announced that the U.S. unemployment rate climbed again to 9.1% this month, up from 9.0% in April.  Just as alarmingly, the net number of jobs created was only 54,000, down from 232,000 in April.  In addition to deteriorating from the previous month, both numbers fell well below the expectations of economists, who had anticipated a decline in the unemployment rate to 8.9%, and 160,000 net new jobs.  This also means that in the 27 months since Obama signed his unprecedented government spending “stimulus,” unemployment has only climbed from 8.2% to 9.1%, even though the Administration projected that he would have it down to 6.5% by now.  By way of comparison, in the same 27 months following the effective date of President Reagan’s tax cuts in January 1983, unemployment plummeted from 10.4% to 7.3%.  The facts speak volumes.