The jobs that were to be created as stated one year ago when the Recovery Act have not been realized by the workforce. Along with the promise of job creation was the statement by President Obama that with the stimulus package as it is commonly known the unemployment rate in the US would not exceed 8%. One year ago, February 17, 2009 President Obama signed into law that Recovery Act. On Wednesday February 17, 2010 at the one year anniversary Mr. Obama said is in a speech circuit outlining his leadership successes and discussing the economy in general. "The problem is most economists point to the $700 billion bailout passed in October 2008 - when George W. Bush was president - as the key government action that kept the financial markets from imploding." The DC
Mr. Obama continued his comments with "I want to begin by recalling where we were one year ago. Millions of jobs had already been lost to the recession before I was sworn into office. Another 800,000 would be lost in the month of January". … "One year later, it is largely thanks to the Recovery Act that a second depression is no longer a possibility. It's one of the main reasons the economy has gone from shrinking by 6 percent to growing at about 6 percent." The DC With that Mr. Obama boasted a 12% turn around in the economy.
That turn around is a remix of information provided at the end of January by the White House declaring the 4th Quarter of 2009 was better that previously expected. Inspection of data used to support that claim was found to be from a one time reduction in inventory by the manufacturing and distribution in the private sector and was not from a more robust growth of the economy. On Friday February 5 the Patriot Post noted the reality of that data from that inventory reduction amounted to 3.5% of the total growth leaving a net 2.2% growth rate for the fourth quarter. That turns out to be 0.8% below the neutral minimum job creation threshold actually needed to have any impact upon creating jobs.
A reporting of data from various government sources has another story to tell: numbers from the Labor Department shows the national unemployment average grew during the year up to 9.7% with an additional 2.09 million people loosing their jobs in the same time period. Housing statistics state that foreclosures are up 9% since the beginning of 2009 and according to the Federal FDIC that 143 banks have failed during the year since Mr. Obama signed the American Recovery and Reinvestment Act the American Recovery and Reinvestment Act. That Act and other Bills signed in the same one year period has managed to contribute to the National debt of 1.56 trillion as reported by Shepard Smith, Fox News.
The Labor Department said Thursday that "first-time claims for unemployment benefits rose by 31,000 to a seasonally adjusted 473,000. The increase followed a drop of 41,000 in the previous week which had raised hopes that the labor market could be improving. There have been 8.4 million jobs lost since the recession began in December 2007." Thursday's news deflated analysts' hopes that new claims would continue to decline. Economists surveyed by Thomson Reuters had expected new claims to fall modestly. Is the stimulus actually working? The Democrats want everyone to believe it is with the upcoming mid-term elections looming just around the corner. Reality has another story to tell.
See Part 2 of this series and that will be reviewed so readers here in Michigan may decide for themselves if they are feeling the end of the Great Recession.