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Robert Reich

Robert Reich

Posted: March 5, 2010 06:16 PM

The loss of 36,000 jobs in February is better than expected but it's still miserable. 26,000 were lost in January, according to the government's revised figures. And the "underemployment" rate -- including jobless workers who have given up looking for work and part-time workers who want full time jobs -- rose from 16.5% in January to 16.8% in February, offsetting some of January's gains.

And don't blame it mostly on the weather. Although the surveys on which the report is based were done in mid-February during winter snowstorms in the east, the major impact of bad weather was on hours worked, not the numbers of jobs. If you had a job in February but were snowed in, the Bureau of Labor Statistics reported you as having a job.

This complicates the president's final push for health care reform. With employers still shedding jobs and consumer confidence down, Americans are worried first and foremost about paying their bills. Because most people aren't aware of how much of their paychecks are being eaten up by rising health care costs, but can easily be persuaded they'll be paying more to cover those who don't have health insurance under any new health plan, the continuing bad news on the jobs front makes it harder for the president to make his health-care sale.

The bad news on jobs also allows economic illiterates (and scoundrels who know better) to continue to claim the stimulus is failing and what's needed is less government rather than more, including not only a smaller "jobs bill" but less or no health care reform.

In politics as in economics and love, timing is everything. Obama can't wait much longer if he wants to convince wavering and worried conservative Democrats to join him in a last ditch 51-vote reconciliation measure to get health care through the Senate. We're already in the gravitational pull of November's mid-term elections. But the economy is taking a longer time to turn around than anyone expected, and telling Americans the jobs numbers are getting worse more slowly isn't exactly reassuring.

One small political consolation is the worst job numbers continue to be on the coasts and the old rust belt where Democrats are relatively safer, and the best numbers in the midwest and mountain states and south where Democrats are weakest. So at least Blue Dog Democrats who are under the most pressure from their conservative constituents on health care aren't grappling with the biggest job losses.

Another is that all across the nation, the people being hit worst by this continuing jobs recession/depression are poor and the lower-middle class who Republicans are trying to court. They're in greatest danger of losing health care coverage if they haven't lost it already, and in greatest need for subsidies to allow them and their families to afford it. Wavering and worried congressional Dems should be reaching out to them.

Americans desperately need health care reform. They also desperately need jobs. Even if it's difficult for many to make the connection, it's still possible for the nation to try to do two important things at the same time. We need a big jobs bill -- including especially extended unemployment insurance, aid to hard-hit states and cities -- and we need health care reform. The sooner we do the former and get the economy moving into positive job numbers again, the more quickly and easily we can afford the latter. The big question is whether the president can make the case.

Cross-posted from RobertReich.org

 
 
 
 
 
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10:11 PM on 03/08/2010
Unfortunately, the health care bill that Congress finally came up with won't do anything to help the unemployed. If government were paying the bill for health care, American companies could actually compete with the rest of the world.
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HUFFPOST SUPER USER
gerald4
licensed mechanical and electrical engineer
03:55 PM on 03/08/2010
Real wealth and real monetary value is created and/or acquired ONLY when the members of a family (or a nation, tribe, city-state, etc.) plant, grow and/or harvest something of commercial value from the earth, extract something of commercial value from the earth, provide professional services (medical, legal, dental, engineering, architecture, accounting, land surveying, technology, etc.) to others outside of that family, and/or manufactures or constructs something of commercial value that is consumable (or permanently useful for income or rent) and then SELLS, LEASES OR RENTS these items and/or services to parties outside of their family, IN RETURN FOR A NET TRANSFER OF GOLD, CURRENCY OR COMMODITIES from other parties outside of their family into their own family. The members of that family can reflect their real wealth with the accumulation of grain, gold, cattle, jewels, land, buildings, commodities and/or other marketable products for reserve use in times of emergency and/or also to raise the standard of living for the members of that family.

Our US congress created environmental and economic "free trade" laws caused US companies to cease manufacturing things in the USA for US consumption, and relocate US factories and US jobs to other nations.
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HUFFPOST SUPER USER
blueken
Finger Picking blues man
11:13 AM on 03/08/2010
The White House has to draw a clear line between the cost of employer provided health care and small business job growth. Of course a small business is thinking about the cost of health insurance when thinking about adding jobs. Every dollar that goes to the drug and insurance industry is a dollar that comes out of the other economic sectors. There is only so much pie, and the drug and insurance industries have take a lot of pie. That don't leave a lot for everybody else.
08:37 AM on 03/08/2010
The birth/death adjustment added 97,000 fictitious jobs to the February jobs report. The Census added another 15,000 fake jobs. The non-seasonally adjusted unemployment rate is 10.4%, while the seasonally adjusted rate is 9.7%; so the household survey has added a lot of jobs in January and February due to statistical models. So the bottom line is that labor market is still in trouble. And this fact, along with ever increasing federal and state budget deficits makes the Health insurance "reform" bill fiscally impossible. Adding a new entitlement program now would make public financial obligations impossible, and would push our country into insolvency much sooner than it would otherwise (because of it's already massive obligations from Medicare, Medicaid, and social security). If we want real health care reform, we need cost cuts and rationing.
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HUFFPOST SUPER USER
DavidWyld
Professor of Management
08:36 AM on 03/08/2010
This is a good commentary on the health care reform issue. The simple truth is that we are still tied to an employer-based model, when the world of work has evolved to more a more independent, multiple-employer and free lance model. Whatever the end product, we need to face the fact that people no longer spend their careers with one company and never switch jobs or work multiple jobs to make ends meet. Once we get into the 2010 model of work (and away from the 1950's paradigm), we'll find a solution. Wanna bet that happens though - not so fast my friend!

David http://wyld-about-money.blogspot.com/
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HUFFPOST SUPER USER
Cheryl12345
03:23 AM on 03/08/2010
Do you realize that if we had Single Payor/Medicare for All/Socialized Medicine, we could do away with Worker's Comp?
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zakwouldhave
Freethinker. I'm 80% ears. 20% mouth.
09:37 PM on 03/07/2010
Those that lean right at my work are having an absolute field day ripping Obama for daring to try health care reform while the job market decays. They are certain Obama is to blame for the high unemployment rate and that health care should be on the backburner. If only they were right. The reasons for the high unemployment rate are way beyond Obama and party. But we will probably only see this after the country elects a bunch of new bumpkins who can't do a damn thing about outsourcing, automation and the new reality after the building bubble burst. We couldn't build forever.
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HUFFPOST PUNDIT
Tulka2
Solidarity. Courage. Humor.
08:22 PM on 03/07/2010
If you read me, you know i have been a loyal advocate of single-payer, but it's now time to hold our noses and pass this stinky give-away to the insurance industry. Then we will, the very next day, have something to amend. If we don't pass this, we have NOTHING, Obama will be a failure and it's down the tubes we go, boys.
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02:33 PM on 03/07/2010
DECOUPLE Health Insurance from employment. Two birds, one stone.
07:46 PM on 03/07/2010
Exactly. A single payer system for everyone would take care of that issue.
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HUFFPOST PUNDIT
Tulka2
Solidarity. Courage. Humor.
08:17 PM on 03/07/2010
If they want the jobless over fifty set to ever work again, yeah. Only then experience will once again be worth something on the job market. Did you see Tom Delay's comment that the jobless are jobless because they choose to be? In a Dante's inferno of perfect punishments, he will be chained to a treadmill.
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HUFFPOST PUNDIT
Marcospinelli
an old liberal Democrat, a 'New Deal'-Democrat
11:48 AM on 03/07/2010
The Jobless Rate Makes Health Care Reform Both Harder and More Important
==================================================

Notice that nowhere does Robert Reich try to sell this dog of a "healthcare reform" bill.

Single payer universal health care and we need it now. Not in 2013 or later, as the bills currently being considered start to begin, but take even more years to be fully implemented.
11:43 AM on 03/07/2010
How many factories and their machines have left the USA under 8 long years of Bush. At first MSM cover it, but the GOP turn their back on the people for their corporate masters. I don't think Pres. Obama has a majic wane to correct this. He may try stiff tariff on any thing a foreign goverment (China cheap lobor and massive government SUBSIDIZES) to help turn the tide.
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HUFFPOST SUPER USER
Andy Gross
11:30 AM on 03/07/2010
Please email your 5 politicians. It takesless than 1 minute.

Our battle has just begun.

We need more Tiers and/or more weeks added to existing Tiers.

Neither H.R.4691 or H.R.4213 will help the 15 million unemployed who have already exhausted all Tiers.

WE NEED EVERYONE'S HELP to get more Tiers added and/or more weeks added to existing Tiers.

Please keep calling and emailing your congressmen and senators to finish the job.

I suggest increasing existing Tiers to 26 weeks each.

And, those who exhaust all Tiers should be able to get food stamps AND cash assistance even if they don't have any kids, when applying for public assistance.

Go to the following links and modify your closings as I have or in any way you see fit.
Links automatically send emails to Prez, V-Prez, your Senators and Rep.

http://capwiz.com/iamaw/issues/alert/?alertid=14697101
Your Closing:
Increase existing Tiers to 26 weeks each. Sincerely,

http://capwiz.com/iamaw/issues/alert/?alertid=14697026
Your Closing:
And cash assistance for those without kids. Sincerely,

My e-mail messages were sent to:
President Barack Obama (D)
Joseph R. Biden Jr. (D)
Senator George LeMieux (R-FL)
Senator Bill Nelson (D-FL)
Representative Mario Diaz-Balart (R-FL 25th)
12:28 PM on 03/07/2010
My suggesstion is go OLD SCHOOL-SEND WRITTEN LETTERS,let them pile up
in their offices so they will understand that the 1,000 polls against 300 million is
not accurate,nor representitive of AMERICA.For those that are against it please
write also,but WAIT UNTIL YOU LOOSE YOUR HEALTHCARE AND JOB,also
those who went to the doctor,and he prescribed a procedure or medication,but
the INSURANCE company denied payment and you had to pay for it yourself.Also
fight against it while your just graduated unemployed child is diagnosed with an
illiness,but cannot get treatment because he made 21 and was dropped from your
insurance and you sit and watch him/her DIE.YES,THOSE AGAINST THIS BILL
SOUND OFF AND WATCH IT FAIL,THEN WATCH THE SUFFERING BEGIN IN YOUR
LIFE!
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HUFFPOST PUNDIT
Tulka2
Solidarity. Courage. Humor.
08:19 PM on 03/07/2010
I have sent several handwritten, snail mail letters too. They are great props for waving in the television lens.
12:34 AM on 03/07/2010
Now if the bill that will be passed only meant something and was substantive, it would be an important step forward, and be worth arguing for. Unfortunately, it's a sellout.
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unionave
Old Codger
11:29 PM on 03/06/2010
If we had a unified electorate we could get what we want . But we do not have a unified electorate because the corporatist spend billions dollars on the air and in print to divide us . So as long as we allow this to happen things will only change to be more in favor of the corporatist . Just think about that ! A unified electorate that ignores the 24/7 barage of lies and innuendos and knows what the truth is . Congress would be at our mercy instead of us at their mercy .
11:19 PM on 03/06/2010
"One small political consolation is the worst job numbers continue to be on the coasts and the old rust belt where Democrats are relatively safer, and the best numbers in the midwest and mountain states and south where Democrats are weakest." I think you just advertised the ineffectiveness of the Dems and highlight exactly why these folks need to go. If you live in in one of these areas, whya are you letting these people ruin you even more? Move, or vote the losers out, to repeat the same behavior and expect a different outcome is defined as insanity afterall.