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Michael Thornton

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Millions of Long-Term Unemployed Are Living Desperately on the Edge

Posted: 07/21/11 07:08 PM ET

"Hope is gone. The future is terrifying." Those were the sentiments of D.V. from Modesto, CA, concerning her and her husband's job situation. She was a Case Manager and he was a company representative; both were laid off in 2009. Since then, "My husband and I went from making $150K a year to scraping out (if we're lucky) $24K a year. Don't get me wrong, we are lucky to have even that, but it IS a stark reality to have fallen so far so fast."

Another stark reality is the fact that the jobs market has stalled and job creation has fallen to its lowest level of 2011. The June 2011 employment report contained plenty of bad news; only 18,000 jobs were created, the unemployment rate increased to 9.2%, and hourly wages and hours worked both fell slightly. The job creation revisions for April and May were both to the downside.

Long-term unemployment remained at historically elevated levels as those out of work for more than 52 weeks increased by 34,000 from a year earlier to 4,364,000, or 30.3% of all unemployed. A large part of that 4,364,000 includes 2,039,000 unemployed who have been out of work for 99 weeks or longer, an increase of 105,000 from the previous month. This is the first time since the 99 week statistic has been tracked by the BLS that it has exceeded the two million mark.

99er (exhausted all unemployment benefits) Brenda McFadden, was a corporate travel consultant for more than 20 years, but is finding that the job market can be unforgiving. Has she seen job market improvements? "Not at all. My state is still over 10% (unemployment). It frustrates me to see the U.S. throwing money we don't have to outside entities, i.e. funding wars and uprisings etc. and yet there are no funds to continue support of the Long Term unemployed during this monumental economic downturn (supporting them would be good for the economy in that they turn around and spend it not hoard it). 99ers especially, are ignored and forgotten and are being swept under the national rug."

While unemployment is at historically high levels considering the economy is supposed to be in recovery mode, the tragedy of long-term unemployment is especially troublesome. The longer a person remains jobless the more difficult it is to find new work. Many prospective employers often disparage the long-term unemployed for being lazy, having out-of-date skills and not having the confidence to step into a new position.

"And on top of that some companies -- including PMG Indiana, Sony Ericsson and retailers nationwide -- have explicitly barred the unemployed or long-term unemployed from certain job openings, outright telling them in job ads that they need not apply.

D.V. from Modesto, CA, feels the sting of long-term job rejection, "Unemployment is still above 18% locally and I still don't even get returned phone calls for minimum-wage jobs."

The jobs crisis can be especially difficult for older workers. "At the present age of 64 and having been out of work for the last 1 3/4 years, I do a lot less, eat much less, get a special discount at the YMCA, shop on Senior discount days, walk a lot more, try to combine trips to avoid using too much fuel," opines Thomas Rainey of Murfreesboro, Tennessee. "The job market for seniors has always been rather bleak; it seems it has really gotten a lot worse in these last few years."

Brenda McFadden believes that new laws need to be put in place discouraging discriminatory practices that affect the long-term unemployed. "I would like to see strong legislation and penalties to employers who practice discrimination -- age related or employment status -- and also see relaxed credit reviews when looking at the unemployed for hire because what may have been good or great credit once may be no longer... doesn't mean they won't make a good employee."

With the number of long-term unemployed increasing, it may be reasonable to think that a great deal of effort is being expended to address the issue. Unfortunately, that is not the case. More time and effort is being spent cutting unemployment benefits than devising job or retraining programs.

Many state legislatures, including Florida and Michigan, enacted legislation that reduces the number of weeks the unemployed can collect state benefits.

State changes to unemployment won't be noticed until 2012, but the federal unemployment extensions are affecting newly laid off workers now:

Workers laid off through no fault of their own will not be eligible for any of the generous extended unemployment benefits layoff victims have received from the federal government since 2008.

Underemployment is also underreported. According to the BLS, underemployment is "persons employed part time for economic reasons." Underemployment is a job of 1-34 hours a week. As of June, 8.6 million workers were considered underemployed. When including the underemployed, the "real' unemployment rate spikes to 16.2%.

Underemployment is hardship for many part-timers, including "Lis Rosser" a 40-something resident of Myrtle Beach, SC. "I would say over the past years 3+ years, I have applied for at least 500 or so jobs, in 5 or more states via on-line/sending resumes, in person, or phone calls to previous employers. The answer is always the same -- call back in a couple of months- or we're not hiring right now."

"I have been unable to find any full time or permanent work of any kind. I applied for anything from McDonald's (they would never even interview me), even worked cleaning toilets and vacation rentals last summer, and now work as a pt (part-time) timeshare tele-marketer. No one else will hire me, and I have been with the same company for over a year @ $8.00 an hour plus commission and no benefits. They have laid me off 3 or 4 times during this time, and then call me back."

Living on unemployment benefits or part-time wages can be very difficult, "I struggle to get by on about $150 - $175 a week- net pay, when I used to make $500 - $600 a week, plus full benefits, working for Harrah's Resorts in Atlantic City. I receive 'partial' food stamps here in SC, and that's it. My 'health care' is the Emergency Room. I can't keep juggling everything, and trying to keep just my cell phone on (needed for work), my car insurance and rent paid, plus gas and car repairs, much longer. Every day I am deeper into this hole, and I don't know how I will ever get out."

With the GOP controlling the House, the chances for further unemployment extensions, or job assistance, regardless of the unemployment rate, are slight. Congressional Republicans are more concerned about bashing Obama about the current jobs situation than doing anything to improve matters. Republicans believe that more tax cuts and unfavorable trade agreements will be the cure-all for a long-simmering jobs crisis. And the Democrat controlled Senate is incapable of pushing forward jobs legislation due to GOP (and some Democrats) resistance.

That leaves President Obama and his mighty bully pulpit to stand up firmly and empathetically for the long-term unemployed. Wrongly, Obama completely ignores these long-suffering millions. As an example, during the president's recent Twitterfest he answered some jobs questions, but he was never offered a question about what he was willing to do for the long-term unemployed and 99ers who have exhausted all unemployment benefits. The Chicago Tribune picked up on that oversight when they released "Best Tweets Obama didn't answer." The best tweet?

Why is so little being done for the 6.2 million long-term unemployed? Why have 99ers been abandoned by Congress and White House? (Full disclosure, that was the tweet of this blogger.)

The GOP seems more inclined to cut social safety net programs in order to continue tax cuts for the wealthy. There are 2.5 million U.S. households earning more than $250,000 a year. These 2.5 million households are given an inordinate amount of congressional attention compared to the 6.3 million households experiencing long-term unemployment. Are the families of the wealthy more deserving of financial assistance than the families of the long-term unemployed? The actions of congress seem to indicate that is the case.

The GOP-controlled House appears fixated on reducing taxes on the wealthy and corporations, cutting Social Security, dismantling Medicare, and repealing healthcare legislation. But when Gallup asked, "What do you think is the most important problem facing this country today?" the top two answers were the Economy in general at 31% and Unemployment/Jobs at 27%. While Americans sense that jobs are an urgent matter needing immediate attention, the GOP House seems focused on partisan issues of less importance.

The emotional toll on the long-term unemployed can be devastating. Lis Rosser feels that the worst is not yet over for her, "I am afraid I will not survive this. As you know things are getting much worse and I fear the situation has not hit bottom yet." While Lis isn't yet hopeless, other long-term unemployed, such as Thomas Rainey, rely firmly on that most precious of emotions -- hope. "But I am confident that there will be a light at the end of tunnel for all in need. We will prevail!"

For the sake of Thomas, Lis, Brenda, D.V. the 6.3 million long-term unemployed and the 8.6 million underemployed, it's vital that their hopes not be exhausted before help arrives in the form of jobs or financial assistance. Unfortunately, considering the recent actions of this congress, expectations should not be high that help will arrive in time.

 

Follow Michael Thornton on Twitter: www.twitter.com/layofflist

"Hope is gone. The future is terrifying." Those were the sentiments of D.V. from Modesto, CA, concerning her and her husband's job situation. She was a Case Manager and he was a company representative...
"Hope is gone. The future is terrifying." Those were the sentiments of D.V. from Modesto, CA, concerning her and her husband's job situation. She was a Case Manager and he was a company representative...
 
 
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HUFFPOST SUPER USER
WashingtonDCsucks
DC... Give them rope & they will try to hang you.
11:26 PM on 08/31/2011
Must keep the tax breaks for the super rich, otherwise how could they afford their 10K per oz caviar to feed their cats.

I wonder if they will see their Bastille day approaching or will it be a surprise.
04:38 PM on 08/24/2011
Wonderfully insightful article as always Michael. The American worker has been woefully betrayed by our do-nothing President and Congress. Unless we get another viable Democratic candidate running in 2012 we will be in for much of the same. The current political outlook is pretty scary. We need someone who will embrace the problems of the middleclass and jumpstart jobs - real jobs. We need to stop outsourcing and start manufacturing again in this country. Global economics has basicallyl eliminated the middle class and much of the prosperity in this country. Ok progressives - lets get going and start thinking of a viable candidate for 2012.
11:10 PM on 09/12/2011
I agree, well stated article on the plight of us 99ers. It is frustrating because we have worked hard all of our lives to have our jobs eliminated by corporate hoarders who only want to employ people overseas to save a few bucks. This along with improvements in software, computer robotics, and other automated systems, our old jobs will never exist in the same form again. I worked as a paralegal for many years. Now instead of my vast experience - the employer only sees my advanced age and "over qualified" can't afford to pay them what they are want. (Note to employer: nowadays, you can still get all of that know how for cheap.We just want to work) Now thanks to user friendly computer software programs the skills I once went to school to learn are no longer needed. I am learning new skills, but need support until I can complete my new education. Usually people don't become obsolete until they are much older than 50. We need to speak out for ourselves and our children so that they don't become part of this whole vicious cycle.
06:37 PM on 08/17/2011
I was one of the lucky ones, one week after getting my final unemployment check, I was called in for a job interview..I was told they'd contact me in a week if I got the job, by then my hopes were not up..two days later they wanted me to fly in for an orientation, when I got back they gave me 5 days to work out my car problem, coz I was without due to an accident, I got another car and started working the next day..I actually make more now, then I did when I was laid off...sadly the few jobs out there employers are too tight fisted to pay a decent wage, those on unemployment are labelled as undesirable...we are unwilling to work, not willing to take less then before not true..when I applied for the job I received I told them I would take $9 an hour, I was making $13 an hour, $9 on unemployment (any less and I would have been homeless), they informed me the job I was applying for was $13 an hour, I'm now making $17 an hour due to my experience..if you can find it, check out warehouse work, it's hard and they do make you work, but the pay is fair..Good Luck!
12:30 PM on 07/23/2011
I've been unemployed for 2 years. Yesterday, I was talking to Kforce, whose job it is to get me a job and she asked me "2 years, what have you been doing?" And told me no one would be interested in hiring me if I hadn't worked in 6 months. I've been asked that question alot in job interviews. What am I supposed to say?
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angry in ct
You can't fight in here, this is the war room
07:36 PM on 07/23/2011
As someone who is in his second month of being back in the worforce after being unemployed just over three years, I can completely and wholeheartedly empathize witjh your plight.

What helped me was adding a section on my resume called "volunteer and consulting work".
Basically what I did was include any volunteer work I did as well as any "consulting" work I did. Before getting the job I have now, I was a sales rep for a medical software company. Because of the knowledge I gained about software, trhe internet, etc, I helped many friends of my parents who were not well versed in computers with simple tasks like Word and Excel. I also was fortunate to have a friend who owns his own website development company, and helped him generate new leads that would become customers.

(more)
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angry in ct
You can't fight in here, this is the war room
07:37 PM on 07/23/2011
The volunteer work I did was for my church, and that was a contributing factor in my getting the job I have now. When my current boss asked me what church I did volunteer work for, I told him, and it turns out he knew one of the parishoners I was long time friends with. Due to that friend becoming a reference (albeit not one I had expected) as well as other factors, I landed the job I have now, which pays me very close to what the medical software position had paid.

The point is that just telling a recruiter or an HR person or whoever is involved in the interview process that you are "looking for a job" won't cut it. They know that you are looking for a job, but they really want to kow what are you doing to keep whatever skills you have fresh or how you are using the down time toher than sending out resumes, getting interviews, etc.

I sincerely hope things change for you. Like a recruiter at a recent seminar I went to said, "everyone lands somewhere" . I hope my advice might be of some help to you.
jhNY
Mercy.
01:32 PM on 07/22/2011
What Is To Be Done?
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CatoInstituteBigshot
The GOP are the lap dogs of the wealthy.
08:03 PM on 07/22/2011
For starters we would need a majority in both houses and a president that doesn't sell us out. We have neither so nothing is to be done other than bickering and their usual pretending. Until people really do break out the pitchforks and torches, nothing real will be done in America.
HUFFPOST SUPER USER
KWiedemer
Denver Unemployment Examiner
10:30 AM on 07/22/2011
Great (if bleak) article, Mike - thanks.

There's a conversation on my FB page and the following comment was posted by my friend,Nick Kelly (who's always very astute about these matters):

"The solution to our unemployment challenge is absolutely clear. More "public works" employment financed by more taxation which in turn is financed by less private money invested overseas, along with more private employment resulting from ...Medicare for all removing the need for US employers to pay for health insurance, hence rendering their products and services more competitive in world markets. Democrats who don't understand this need to be sent to the corner wearing dunce caps. Democrats who do understand this and still support the opposite might as well be Republicans." [Nick Kelly]

The conversation was started when I posted this on my wall yesterday morning:

"Senator's Bennet and Udall (both D-CO) are thinking that they will support the so-called Gang of Six budget plan - OUT OF CONTROL! Do not vote to cut social security and medicare. End the abuse of overseas corporate tax havens and close the tax loopholes!"

https://www.facebook.com/permalink.php?story_fbid=194584223928421&id=100001305337162

Denver Unemployment Examiner
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HUFFPOST BLOGGER
Michael Thornton
08:49 AM on 07/23/2011
Thanks for the link and the update, Kelly. It is all out of control, since it appears that the wealthy and connected will again rob the poor and middle class. Too bad the new HuffPo has delegated this story to the waste bin so quickly. It's another indication of how the long-term unemployed are ignored by the media and the powers-that-be.
09:30 AM on 07/24/2011
That is exactly what the nanny state is all about. If you can't reach your potential you can always get the govt to take care of you. When it happens its even worse than it sounds.
08:42 AM on 07/22/2011
Most of the long time not working collected 99 weeks of free money (around 30k). So how can you say you were ignored and now forgotten? Your rhetoric is tired and played out. I couldn't tell you whats next for you, but something will come up. I no longer tell people "get a job" thats pointless, besides after sitting it out for 2 years you're not that in demand. This could be the end. We'll see.
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HUFFPOST BLOGGER
Michael Thornton
10:49 AM on 07/22/2011
Maybe the facts will convince you that there is a jobs crisis. There were 3 million jobs (not all those jobs are full-time jobs) listed in the US in May. About 10-20% of those 3 million jobs are part time jobs. Officially there are 14.1 million unemployed, 2.7 million marginally attached workers, and 8.6 million part-time workers who want full time work. That adds up to 25.4 million people looking for full-time work. Fact: 25,400,000/2,700,000 (3 million jobs minus 300,000 part-time jobs) = 9.4 unemployed/underemployed looking at each full-time job opening. In May, McDonald's hired 62,000, but they received 1,000,000 applications.

While you may be tired of what you consider rhetoric, the facts remain that this so-called recovery is not creating the jobs necessary to employ more than 20% of the working population who want full-time jobs.
11:20 AM on 07/22/2011
Yes I know. I'd rather put it in terms that its not a shortage of jobs, its an overage of people.
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HUFFPOST SUPER USER
Maureen Mower
Humanist, realist, open-minded, logical
04:02 PM on 07/22/2011
Michael, you're wasting your time and energy on someone who is PAID to make posts like that. "She" (can't really be sure with a fake ID) has admitted as much, to me personally, in other HuffPo discussions.

Note her reply... she is basically saying that the best solution for unemployment is for the unemployed to die off.

She says things like that to elicit our anger. The best way to fight against this is to ignore her (or, if you have the authority - delete her posts). There is no humanity in the person behind that fake ID, so he/she/it isn't worth wasting our time on when so many millions of Americans are suffering.
08:16 PM on 07/27/2011
First of all unemployment benefits is NOT free money..it's money employers paid into an account for the employees during their employment..once they lose their job through no fault of their own, that money is suppose to help them while they seek another job..the unemployed pay taxes on that money..my ex boss paid for 5 years for me...but I could only draw two years..hmm what happened to the other 3 years I wonder?? I lucked out though I found a job with a company that's been in business for over 40 years, I applied for a $13.00 an hour job (I originally asked for $9 an hour, but they said we have no jobs less then $13 an hour) was hired two days after my interview and informed I would be making $17 instead because of my experience..I digress, until you are unemployed begging for a job while drawing benefits that nosey uninformed know it alls call "free money" until you walk in my old shoes MYODB!
02:21 AM on 07/22/2011
It is all one BIG lie.

The American dream and how anybody who works hard can achieve it is just one BIG lie.
And that social programs (instead of the military) must be gutted while the upper classes and big corporations enjoy low tax rates.....is another part of the BIG lie.

For example, the workers paid into social security, the politicians knew about the retiring baby boomers, yet they say there is not enough money?
Where is the money?
(Yea, we know, the politician­s "borrowed" it.)

Another example, the Rich and Wall Street took huge risks, yet the unwashed masses (taxpayers­) were forced to bail them out.
Our reward?
Having our social programs gutted while those who did the dirty live high on the hog like nothing ever happened.

Class warfare...­.or whatever you want to call it.
And those of us who try to sound the alarm are insulted and put down in the oligarch owned and controlled media.
We are only allowed to buzz a little like inconvenie­nt but inconseque­ntial flies.
But we would be swatted if we threatened them (their goals).
jhNY
Mercy.
01:37 PM on 07/22/2011
"For example, the workers paid into social security, the politician­s knew about the retiring baby boomers, yet they say there is not enough money?" Adding insult to this injury is that sometime in the 80's, so as to fix the future problem of a balloon in eligible recipients, those employed at the time were made to pay a higher per cent of their income into the SS fund. So now, those same folks if now retiring, will get less than those who paid in less, their predecessors, received. And those who fololw the Boomers into retirement? Less still.
07:36 AM on 09/02/2011
THAt was part of REAGANS FIX of SS, I believe.
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Mr Hankey
Kucinich / Sanders (Democratic Socialist)
10:22 PM on 07/21/2011
It's outrageous that our government is arguing over raising the debt ceiling (money that has already been spent) and discussing how to cut spending by making cuts to social programs that vulnerable Americans rely on.

We haven't recovered since the financial crash. Working and middle class people are concerned about being able to afford food and pay utility bills, and make the rent/mortgage payments. We need gainful employment. We're concerned about the future - for ourselves and future generations.

People need job opportunities. I think the government is going to have to invest in our future in order for us to come out of this mess.
11:24 PM on 07/21/2011
what you and the rest of america doesnt understand is that the republicans want to eliminate by NEGLECT 160 million people or about 55% of the population - they dont need them - with medcare cut back to the Ryan plan and SS cut back and eliminated for huge part of the citizens - there will be no possible way of surviving for very long - medical costs will be too high - people will sell body parts to stay alive - livers / corneas / hands / feet - what ever they can sell easily

as soon as the republicans can come up with the right propaganda and supreme court decision - they will eliminate the popular vote --- we are not that far away

the media is very concentrated and the newspapers will not have the funds to cover the stories so no one will know as it all unfolds
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Mr Hankey
Kucinich / Sanders (Democratic Socialist)
12:35 AM on 07/22/2011
Hey, I'm on YOUR side with all that. I get it. I've been reading all about the debt ceiling and the Gangsters of Six plan.

Do you know who Dennis Kucinich and Bernie Sanders are? Those guys are my heroes. They are fighting to keep medicare, medicaid, and SS in tact - and have been fighting for the middle class and working class all along.
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HUFFPOST SUPER USER
Al Nava
Working-Class & Progressive Revolutionary Leader
10:00 PM on 07/21/2011
While the GOP and Blue Dog Obama both sell us out for Wall Street profits, the Working-Class is on the verge of complete and utter destruction. Only Progressives and the Congressional Progressive Caucus are fighting for the Working-Class.

By only supporting, donating to, and voting for Progressives, we can stop the Corporate-controlled GOP and Corporate-controlled Democrats from transforming our Nation into a two-class system: Rich elites and Poor workers.
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HUFFPOST SUPER USER
Sandee McHale Delano
Do not fear change. Change fear
09:11 AM on 07/22/2011
I agree. I have been called by Dem fundraisers and just said NO. I am over this country.
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HUFFPOST SUPER USER
Maureen Mower
Humanist, realist, open-minded, logical
08:00 PM on 07/22/2011
I wish that Bernie Sanders would challenge Obama in a primary. He would have my vote, my money (whatever I have left, anyway), my time, etc. With him on the ticket, we could sweep all three houses, maybe even get a super-majority in both houses of Congress as well.

We may still take Congress in 2012, because the American people are fed up with the GOP I think - but if no one challenges Obama from the left, I'm not what will happen with the White House. I could never bring myself to vote for a Republican, and the current crop of GOP candidates reads like the inpatient list at Bellevue's psych ward - but Obama has to do more than say the right things at this point as well. Otherwise I may just skip voting for POTUS completely unless there's a third party candidate I can live with.

We are living on nothing but my husband's SSD check while he's in chemo. I'm a 99er who has been without a job since 2009 and ran out of UIB in December. We have nothing left to give up - and if Obama makes a deal that takes more from us, then he may as well run on the GOP ticket in 2012 as far as I'm concerned.
07:46 AM on 09/02/2011
i agree. Progressives are the only hope for the average American.
Obama is inept,corrupt,indifferent,not what we hoped.Whatever.
He is hampered by that 2010 election. That was a real disaster.
Obama is better than any GOP alternative.
Definitely.
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Mr Hankey
Kucinich / Sanders (Democratic Socialist)
09:06 PM on 07/21/2011
Everyone in Congress should read this article. Except for a few representatives, they seem so out of touch with reality.

So many of us are just hanging on by a thread financially.

Thank you Michael Thornton.
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HUFFPOST SUPER USER
Sandee McHale Delano
Do not fear change. Change fear
09:12 AM on 07/22/2011
They have no clue what is actually happening to US in this country. Completely out of touch with reality.
07:49 AM on 09/02/2011
They are rich and indifferent to life for the average person.
People like Olympia SNOWe and Obama came from poor backgrounds. Rick Perry also.
They dont identify with a life of struggle they have escaped from.
They prefer to hob nob with the affluent.
Dont identify with the average person at all.
07:28 PM on 07/21/2011
The latest pull a number outta "my air" estimate for the F-35 is $304 million per copy. Reallocating that to the long-term unemployed would hire a 1000 for a year at $30k.

Do we need $300 million dollar fighters for jet-jocks or will we replace these with much less expensive drones in a few years?

Further, except for the U.S., maybe China, & Russia no country can afford to develop an opponent. (Yeah, France and Israel dabble.) In the 20 years since Kuwait, our air power has met no resistance.

Defense is important but so are willing-to-work Americans.
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HUFFPOST SUPER USER
sdcloke
proud socialist
03:45 AM on 07/22/2011
The military doesn't even want the damn thing...
This user has chosen to opt out of the Badges program
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MinneMike
I am 1% deal with it
06:50 PM on 07/21/2011
This in the aftermath of $timulus ($1.1T with interest), Recovery Summer, etc.

Before ObamaCare, there were 67,600 net private sector jobs created per month. After ObamaCare, we are looking at an average of 6,700 net private sector jobs created per month.

http://washingtonexaminer.com/blogs/beltway-confidential/2011/07/did-obamacare-kill-obama-recovery
08:56 PM on 07/21/2011
Wow. Obamacare is responsible for all that.

Well, as I recall, the day Obamacare went in, I stubbed my toe. Therefore, I suppose it's possible that one could say, before stubbed-toe, 67,600 jobs created per month. After stubbed-toe, only 6,700.

I guess I owe everyone an apology.
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HUFFPOST SUPER USER
Redwood Eagle
Treehugging, Hippy, Druid Grandfather
06:29 PM on 07/21/2011
Yet, Speaker Bo(e)ner keeps up his mantra, "don't tax the job creators." It's a fraking LIE. They've had tax cuts for a decade now - WHERE ARE THE JOBS? Oh, right, China. I forgot. I bad.
12:44 AM on 07/26/2011
Tax breaks, or theft from the working class? Taking back whats been taken would just be restitution.
07:53 AM on 09/02/2011
right on.tax cuts have been in effect for 10 years?
Bush created least jobs any US president.
Equation is Tax cuts for rich= ) job creation /? No way that works.
In fact it was called a jobs bill as i recall.