July 30, 2021

Politics: Monthly job creation averages: Reagan 233,000; Obama 61,000

Smackdown.

The Obama White House really hopes you remain as ignorant as possible about recent American history. That is especially true when they announce monthly job numbers, like those that came out yesterday. The Labor Department has announced that 175,000 jobs were created in February. The U6 unemployment rate – the real unemployment rate that includes the underemployed and those who have given up looking – was 12.6 percent.

Now the White House wants you to think that 175,000 is a good job creation number. It’s not. But if you don’t ave historical context in which to view the number, you might not recognize that. So let’s put the 175,000 jobs in perspective.

During Ronald Reagan’s first term, the average per-month newly created jobs was 233,000. That wasn’t a phenomenal month that prompted them to throw a celebration. It was the average. And keep in mind that the population of the United States 30 years ago was 81 million less than it is today. That means we were a 25 percent smaller country, so you would expect the job creation numbers of that era to trend smaller as a result.

But that’s not the case. If you check the monthly job creation numbers under Obama and average them, you come up with an average of only 61,000 (and I didn’t even include January 2009, which was horrendous).

Let’s review again the average monthly job creation numbers:

  • Reagan: 233,000
  • Obama: 61,000

By the way, the biggest job creation month of the Reagan presidency was November 1983, when we created 1.114 milion jobs. How did that happen? It happened because they had just passed huge tax cuts. They had a plan for how to grow the economy, and they implemented the plan, and it worked. Remember, when Reagain took office he faced a recession too. He didn’t use that as an excuse.

The Obama Administration doesn’t have any policies that will boost hiring, boost economic growth. But they can make assumptions! Yesterday thaty said the economy is going to grow at over 3 percent in the coming year. It hasn’t done that in the five years Obama has been president, but they are basing all their long-term revenue projections on the assumption that it will.

Last year it grew 1.9 percent. Why would it suddenly grow at 3 percent when Obama refuses to change any of his policies? They won’t. They can’t.

If Obama was serious about growth and job creation, he would adopt the policies of Ronald Reagan. Then maybe he would get the results of Ronald Reagan, which were outstanding.

Those were the days.

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