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Obamanomics: More Mediocre Job Growth

by Keith Koffler on January 4, 2013, 11:45 am

The economy added 155,000 jobs last month, about the amount needed to keep pace with population growth and too few to bring down the unemployment rate, which was revised upward to 7.8 percent in November and pegged at the same level for December.

What does this mean? Four years into the Obama presidency, the economy is not producing enough jobs to even come close to gaining back the millions that have been lost since 2008.

Welcome to the new normal: crummy GDP growth, and high unemployment.

And in the short term, it’s more likely to get worse than better. You, for example, will be spending a bit less since your taxes just went up : As of New Year’s, the Social Security rate returned to 6.2 percent from 4.2 percent.

And gosh, those rich people whose rates rose to 39.6 percent might just decide to cancel their daughter’s piano lessons. That is, they’ll be participating a little less in the economy too. Believe it or not, Mr. President, they have a lot of money, but not unlimited money.

If President Obama gets his way, more tax increases are coming. And spending cuts needed to avoid Fiscal Cliff Part 2 in a couple of months will also take a morsel out of economic growth.

It’s hard to keep the American entrepreneurial spirit down, but this president is succeeding where all since Jimmy Carter have failed.

{ 38 comments }

RickW January 4, 2013 at 11:58 am

(Hawaiian music in background) “Hey! Get me one of them Secret Service dudes to wax my surfboard!”

Susan January 4, 2013 at 12:47 pm

…and tell the houseboy to bring me another one of those umbrella drinks.

ImNoDhimmi January 5, 2013 at 9:45 am

“And while he’s at it, he can wax Me-Chelle’s back.”

Moe January 4, 2013 at 11:59 am

I hate the new “normal”, and we have four more years to look forward to. Makes me sad for what could have been.

Julie Brueckheimer January 4, 2013 at 12:28 pm

I hate that expression too, but I think it is not intended just for the next four years but for a very long term, maybe forever. As the SwedishLady wrote me here, it has taken Sweden decades to come out of the welfare state of the 70s. “New normal” implies that long-term, wide-spread unemployment is here to stay. Frankly, if we don’t bring back a production economy, we’re doomed, and even if four years from now, there is a turn of the wheel, it will take a long, long time to reestablish manufacturing jobs.

Michael January 4, 2013 at 1:13 pm

Depressingly, those four years haven’t even started yet.

One thing is sure: it will be a very long four years.

Star January 4, 2013 at 2:32 pm

If he wants to redistribute and is always boohooing over kids like his–stay home, let the servants wait on you, and give the money to little kids with cancer or something. I understand for the Inauguration (sorry to bring THAT up), there will be an emphasis on service–by everyone but him, of course.

AZ Granny January 4, 2013 at 4:27 pm

I agree it will be a very long 4 years and it will take decades to recover from this president.

DeniseVB January 4, 2013 at 12:06 pm

My biggest fear? He’ll somehow turn the economy into a rally call for a third term.

The power of his magic Executive Order wand is frightening too.

Langley Spook January 5, 2013 at 7:57 am

Ive wondered (usually in dark, slightly intoxicated state) how Dear Leader Obama would swindle a 3rd term…

Just2old January 4, 2013 at 12:16 pm

And I’d say most of those 155,000 jobs were temp holiday staff….we’ll probably see the unemployment rate go up the next couple of months if they don’t fudge the numbers….the election is over so I’m betting the numbers will be closer to the truth (if that’s possible).

Star January 4, 2013 at 12:33 pm

Even NPR was scuffing its shoe in the dirt, no way to spin it brilliantly.

Star January 4, 2013 at 12:36 pm

I am mulling dropping my DO THE HOPEY COPEY blog of four years. It’s on how to stay alive with no money. The job interview advice, house sale advice, govt advice is getting repetitive, although I do try to add new snark. But I guess we still need it and always will. http://hopeycopey.blogspot.com.

Susan January 4, 2013 at 1:07 pm

Never ever give up, Star.

Girly1 January 4, 2013 at 1:25 pm

I second that, Star. Couldn’t have gotten through the last 4 years without the delicious snark!

Star January 4, 2013 at 1:57 pm

Thanks, guys…I tend to hang onto things…my health site is almost seven. I had a newsletter once called CHEAP RELIEF that was 14.

srdem65 January 4, 2013 at 4:01 pm

Ditto, what she said. We’re not quitting, ever.

Star January 4, 2013 at 7:24 pm

Yes, we have to commit ourselves to the long game and grind it out.

Moe January 4, 2013 at 12:45 pm

I was given the heave ho the day after Christmas from my awful job at a department store. Sales compared to last December were down twenty percent, so no chance of keeping me on. I hated it anyway, but the extra cash did help a bit.

AZ Granny January 4, 2013 at 4:23 pm

Moe, sorry to hear that. Best wishes to you.

Moe January 4, 2013 at 7:21 pm

Thak you Granny, but not to worry we are fine. Hubby has a wonderful job, we pretty much banked the money for surprises. Has been a humbling endevor, so many count on those lousy jobs just to stay afloat. I am blessed,

rulierose January 4, 2013 at 8:41 pm

Moe, I hear ya! I was allowed to keep my job of 10 years, but the new boss decided he didn’t like me that much so he cut my pay by 10%. now, thanks to Obama and the gang in DC, that becomes 12%.

again, to all you “conservatives” out there who sat on your butts on Election Day and didn’t vote for Romney because he wasn’t conservative enough/was a Mormon/used to be pro-choice…wah wah wah: the once-proud United States of America would like to thank you for your part in its demise.

Star January 6, 2013 at 12:20 pm

I agree–many let their yearning for the perfect throw it to the vastly imperfect.

Girly1 January 4, 2013 at 1:09 pm

Where the Jobs Are: Ages 55-69

Since Obama took office in Jan. 2009, 2M jobs have been lost in the 16-55 age group; but offset by a staggering 4M jobs in the 55-69 age group! Haven’t heard one economist or tv pundit refer to these stats. If this is the new ‘norm’, we’re in a heap of trouble.

View charts:
http://www.zerohedge.com/news/2013-01-04/where-jobs-are-55-and-older

Girly1 January 4, 2013 at 1:12 pm

….meant to say 4M jobs ADDED to the 55-69 age group.

srdem65 January 4, 2013 at 2:23 pm

Thanks for the linky. Shocking stats to say the least.

Are employers looking to hire those who are not tattoo-ed, pierced, or self-entitled. but rather the proven, steady, drug-free worker?

Star January 4, 2013 at 2:34 pm

Not sure that fits with the anecdotes I hear–people not wanting to hire Mom or Dad to be around the office. Age discrimination, in other words.

Girly1 January 4, 2013 at 2:40 pm

They’re probably being hired by local, state, and Fed govts.

Star January 5, 2013 at 11:19 am

Acc to the NPR story, govt jobs were also down, I think, 13,000…depending on my memory, which is never pretty. Anyhow, has anyone said lately that the economy still SUCKS and BLOWS? One of my two clients is in England–I get paid in quid. I know–the WH does not give a flip–we are on our own…

Susan January 4, 2013 at 3:21 pm

I’ve read many employers have been turned down by applicants because they can’t pay a higher wage than the person is receiving on government benefits. Those few who are hired tend to be older workers because they still have work ethics, which can’t be said for much of today’s youth.

Otis Driftwood January 4, 2013 at 3:38 pm

curious though, full time or part time?

Burke January 4, 2013 at 8:39 pm

I am in that group. Lost my healthcare job in 2010. I been have unemployed for two years now. I have not taken one dime of unemployment, or any tax payer money, Lost my home and family, I survive only by Charity of the Church. I have lost hope of finding a job again. Thank you Obama and your Sheeple for wrecking millions of lives.

Tony Lima January 5, 2013 at 3:28 pm

The labor force participation rate tells the same story. Here’s my article: http://gonzoecon.com/2012/07/the-labor-force-participation-rate-lfpr-closer-look/

movedtothefarm January 4, 2013 at 3:37 pm

I believe that is Barry’s purpose – get use to this ‘new norm’ of high entitlements, high unemployment…

I had to refinance my land with a 5/20 commercial land loan. In 5 years when the bank readjusts our rates I am worried to think how high they will be….I figure high interest rates are next.

srdem65 January 4, 2013 at 4:00 pm

Congrats on getting any loan, no matter how good the collateral.
I doubt the interest rates will be much higher for a long time.

Curious, you don’t have to reply; what do you do on your land or what do you plan to do?
I know you’re investing in the future and I applaud your efforts.

Sadie January 5, 2013 at 12:40 am

Speaking of Media-ocre (notice the subtle play on words) I’ve only read in a few places about the two “Al’s” …Gore and Jeezera. Time Warner will not carry “current tv” or any manifestation of it. They deserve a round of applause for their decision. Time to pressure the other cable providers to do likewise.

mer January 5, 2013 at 11:04 am

I’ve been listening to the fiscal cliff talk for months and kept talking to my husband about what I thought the Republicans should do or not do. It was all just theory and conjecture until I read this article. I’ve been out of the news loop for a while because of the holidays but just sat down to do the bills. I took a calculator to the tax and SS increase and my jaw dropped. How will people, especially those living hand to mouth, be able to make do with less?

Even if my husband does get a raise this year-which is iffy because of the economy- we will only break even at best and still have to pay more for everything.

SaveUsGod January 6, 2013 at 4:01 pm

I heard some on FOX say it is keeping up with new entries into the workforce. What about the 14 million others that can’t find jobs or quit looking is my question?! What a stupid remark!