iPhone app iPad app Android phone app Android tablet app More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Robert Reich

GET UPDATES FROM Robert Reich
 

The Jobs Report and the Election

Posted: 09/07/2012 11:38 am

President Obama's speech to the Democratic National Convention was long on uplifting rhetoric but short on specifics for what he'll do if reelected to reignite the American economy.

Yet today's jobs report provides a troubling reminder that the economy is still in bad shape. Employers added only 96,000 nonfarm jobs in August. True, the unemployment rate fell to 8.1 percent from July's 8.3 percent, but the size of the workforce continued to drop, according to a Labor Department report Friday.

Unfortunately for the President -- and the rest of us -- jobs gains have averaged only 94,000 over the last three months. That's down from an average of 95,000 in the second quarter. And well below the average gain of 225,000 in the first quarter of the year. And compared to last year, the trend is still in the wrong direction: a monthly average gain of 139,000 this year compared to last year's average monthly gain of 153,000.

Look, I desperately want Obama to win. But the one thing his speech last night lacked was the one thing that was the most important for him to offer -- a plan for how to get the economy out of the doldrums.

Last week Mitt Romney offered only the standard Republican bromides: cut taxes on the rich, cut spending on programs everyone else depends on, and deregulate. They didn't work for George W. Bush and there's no reason to expect they'll work again.

But the president could have offered more than the rejoinder he did -- suggesting, even in broad strokes, what he'll do in his second term to get the economy moving again. At least he might have identified the scourge of inequality as a culprit, for example, pointing out, as he did last December, that the economy can't advance when so much income and wealth are concentrated at the top that the vast middle class doesn't have the purchasing power to get it back on track.

Undeniably, we have more jobs today than we did at the trough of the Great Recession in 2009. But the recovery has been anemic -- and it appears to be slowing. We're better off than we were then, but we're not as well off as we need to be by a long shot.

ROBERT B. REICH, Chancellor's Professor of Public Policy at the University of California at Berkeley, was Secretary of Labor in the Clinton administration. Time Magazine named him one of the ten most effective cabinet secretaries of the last century. He has written thirteen books, including the best sellers "Aftershock" and "The Work of Nations." His latest is an e-book, "Beyond Outrage," now available in paperback. He is also a founding editor of the American Prospect magazine and chairman of Common Cause.

 

Follow Robert Reich on Twitter: www.twitter.com/RBReich

FOLLOW POLITICS
President Obama's speech to the Democratic National Convention was long on uplifting rhetoric but short on specifics for what he'll do if reelected to reignite the American economy. Yet today's jobs...
President Obama's speech to the Democratic National Convention was long on uplifting rhetoric but short on specifics for what he'll do if reelected to reignite the American economy. Yet today's jobs...
 
 
  • Comments
  • 505
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Highlights
Recency  | 
Popularity
Page: 1 2 3 4 5  Next ›  Last »  (11 total)
09:48 PM on 09/10/2012
For those of you who look back on the current state of goverment and the economy, you might want to look back with Burt Folsom and see how Obama has taken a page out of the FDR playbook. Obama has paid off all his buddies and to try and get more votes. Folsoms book, New Deal or Raw Deal points out how FDRs programs failed and kept the country in the Great Depression, far longer than necessary. Henry Morganthau his treasury secretary and confidant summed it up best saying we have spent more than ever before and what do we have to show for it. You might ask Obama the same question after $5 tuh trillion new debt in under 4 years, when he said that $4 tuh trillion in 8 years under Bush was unpatriotic?
09:38 PM on 09/10/2012
Enough blaming the Republicans in congress for blocking things. During the last 2 years of Bush's 2nd term the Democrats controlled both the house and senate and blocked him. During the first 2 years of Obama's term, he had wide enough margins in both houses, so much so that the even when the Republicans all voted together as one, they could not stop him. Obama gave us a Stimulus which was supposed to keep unemployment under 8%, its been over 8% for 43 straight months. Lets not forget that they said that if it passed that we would be at 5.5% now. Really? Nice try. We have fewer people working now than when Obama came into office with real unemployment around 11%.
Instead of trying to fix the problem, he spent the better part of 2 years shoving health reform down our throats. Just wait until that kicks in, in 2014, should it no be repealed. Lets see how many true progressives stay with the program, when one of their family member or they themselves get a condition (cancer, etc) that the government won't pay for because of age, cost or other given reason or they have to wait in line 6 months due to doctor or budget shortages to get it taken care of. Socialism is the the people, not the socialist!
photo
HUFFPOST SUPER USER
Wayne Caswell
Consumer Advocate & Founder of Modern Health Talk
12:25 PM on 09/10/2012
It matters not what Obama plans if Republicans in Congress continue their scorched earth opposition of every proposal put forth, including Obama's jobs bill. The solution is to ignore PAC-funded attack ads and vote out the tea baggers.
11:42 AM on 09/10/2012
Per Thomas L. Friedman in yesterday's NY Times:

"The unemployment rate today is 4.1 percent for people with four years of college, 6.6 percent for those with two years, 8.8 percent for high school graduates, and 12.0 percent for dropouts."

This explains a LOT about the US state of affairs. And, it highlights the idiocy of the Republicans' war on education.
redonthehead
Winning trophies for my game face alone
11:09 AM on 09/10/2012
Hope and Change not good enough for you anymore?

How about these for specifics from the Obama campaign.

Regulate entire industries out of existence.
Raise regulatory costs on every employer.
Spend money without a budget indefinitely.
Print so much money that food and energy costs are exploding.
Demonize and attack the nations employers.
Demonize and attack those that are successful.
And finally keep using phrases like, "You didn't build that"

Enough specifics for you Bob?
11:42 AM on 09/10/2012
LOL.

In fact, LMFAO@U
nothingchanges
too soon old, too late smart
08:28 AM on 09/10/2012
I don't see this as a complicated issue.

Supply and demand.

Infrastructure in the United States is a national disgrace. It's crumbling after decades of neglect. All of us, rich and poor, depend on America's infrastructure.

Unemployment in Construction is over 20%

Interest rates are NEAR zero.

You can't ASK for better terms to address this problem, yet it's not being addressed.

If not NOW............when?
03:58 AM on 09/10/2012
Specifics are in short supply during the "modern" political conventions. Obama had more than the GOP but far less than the specifics hungry public. We're told, "be patient, that comes during the campaign." And so we wait.
02:42 AM on 09/10/2012
Due respect to Mr. Reich, a wonderful economist I'm sure but not much of a politician, who thinks it best to play into (albeit disingenuous) "class warfare" claims. In the words of Bob Dylan "You don't have to be a weather-man to know which way the wind blows." And you don't have to be a fancy boy economist to know what's holding up better growth right now. One word: Uncertainty. As soon as we choose a President, and Congress, and see how the balance of power shakes out, a very significant proportion of that uncertainty is cleared up. Next that President and Congress will have to address the "fiscal cliff" problem. Four short months from now those two X-factors will be largely assigned values. Doesn't matter so much what those values are, just that they are determined. The economy will then pick up the pace nicely. Mark these words. .
11:45 AM on 09/10/2012
Actually, there's a glaring omission in your post...

One thing that IS "holding up better (jobs) growth right now" is the GOP's policy of obstructionism.

And another is that, despite promising "JOBS! JOBS! JOBS!" in the 2010 mid-terms, they produced ZERO jobs bills, while bringing forth 133 bills to limit women's Constitutional right to an abortion.

Since co-operation is anathema to the GOP, I'd say your post is a bit skewed.
09:11 PM on 09/10/2012
I don't mind you wanting to add points to my post, but I've omitted nothing. You are an advocate for one party, that's all. I'm not. You and I probably agree on a lot of things. I also agree with a lot of Republicans on a lot of things. My post is intentionally non-partisan. I don't agree with your over-generalization "co-operation is anathema to the GOP." Certainly there are MEMBERS of the GOP for whom cooperation is anathema. But to generalize that to the whole party is not accurate, not helpful, and serves only to further set in partisan intransigence. It's also ineffective politics. Because you will never reach those members of the GOP who wish to cooperate, who wish to solve problems, who might cross party lines in a vote, or a Vote, if if you keep demonizing ALL Republicans as some kind of evil group. I assure you they are not, even now.
photo
HUFFPOST SUPER USER
carl cid inting
There are no tyrants where there are no slaves
11:31 PM on 09/09/2012
The jobs report only reminds us that the Republicans in Congress have done their best to sabotage the economy in order to attempt to fulfill their #1 objective: make Obama a one-term president.
07:40 AM on 09/10/2012
oh be quiet. do you really want to go on record sounding so dumb, so paranoid? we disagree with obama's keynesian fantasy, and events on the ground prove us right. that's why we oppose him, dolt.
photo
HUFFPOST SUPER USER
Timothy Bladel
We need better central planning, not less.
11:16 PM on 09/09/2012
Some on the left live in a alternate reality. First, the tax cuts did work for Bush and J.F. Kennedy, Reagan, and Bush, plus when Clinton lowered capital gains, they helped. Yes he raised some, but he did it in the middle of a the boom that was spawned by Reagan and Bush 1 who gave investors a lot of THEIR money to invest and keep. No matter how much you take from the rich, they will get richer, because they are rich. The measure should always be who is moving up. Under this president, very few have. Blame whoever you want, even tough you will deny the huge part the left played with their home ownership quotas, that Bush 2 continued, but what you cannot deny - although you will try - is that Obama's stimulus and other policies have not gotten the job done. Its funny, they blame bush because it happened under his watch - its partly warranted- but grant Obama no blame for the failures of the so called recovery summers. The economy will decide the fate of this president, not a grand speech promising more hope.
photo
HUFFPOST SUPER USER
MiddleMolly
Working to better the USA!
03:31 AM on 09/10/2012
Interesting.. After the very mild recession of 2001, in which the GDP fell about 0.3%, and after which those tax cuts kicked in, it took 21 months for jobs numbers to turn positive.

This time, after a much deeper recession with a GDP drop of over 5%, it took only 8 months for jobs to turn positive. We didn't exceed the number of private jobs that existed when Bush took office until his second term. Despite the severity of the crisis and the constant Republican obstruction, we've already exceeded the number of jobs that existed when Obama took office.

But you still think that tax cuts are better at stimulating jobs than any kind of government stimulus.
07:44 AM on 09/10/2012
hope you're enjoying life on mars. government run economies work so well, all across the planet. america wan't made the most powerful nation on earth in just two centuries entirely on the power of private enterprise. bureaucracies are more effective than private companies stewarded by men of vision.

you take the government, i'll take Apple. cool, genius?
12:13 PM on 09/10/2012
It was inevitable that a certain amount jobs/work would come back, no surprise there. And the only one that gets credit for that is the job provider that hired that somebody. We still have less people working than when bho took over.
HUFFPOST SUPER USER
kroyall
10:21 PM on 09/09/2012
Actually Bush did create more jobs than Obama and we were closer to full employment back then. I would take GW Bush over Obama right now any day.
photo
HUFFPOST SUPER USER
MiddleMolly
Working to better the USA!
03:38 AM on 09/10/2012
Bush: In the 2001 recession, the GDP fell 0.3%. We did not start adding jobs back until 21 months after the recession was over. Private sector jobs did not exceed the number of jobs when Bush took office until Bush's second term.

Obama: 2007-9 recession: GDP fell over 5%. We started adding jobs back 8 months after the recession ended. Private sector jobs jumped over the number of jobs when Obama took office a few months back.

Unemployment has improved more on Obama's watch than it did on Bush's watch. In the 43rd month of his presidency, the unemployment rate was 1.2% more than it was when he took office. Under Obama, the unemployment rate is .3% more than it was after he took office.
08:03 AM on 09/10/2012
Bush: highest unemployment-7.8. Obama: Lowest unemployment:7.8.
11:47 AM on 09/10/2012
Source please.
photo
HUFFPOST SUPER USER
Doug Brockman
10:11 PM on 09/09/2012
I'm now really pulling for the president. He says he has bold new experiments to try on us. I'm betting the results will be even more mediocre than the last four years and would hate to miss the resulting educational experience.
photo
HUFFPOST SUPER USER
MiddleMolly
Working to better the USA!
03:39 AM on 09/10/2012
Mediocre? You need to become better informed. Get new sources of information.
09:50 PM on 09/09/2012
The irony is, that Obama's absence of a plan would be better than Professor Reich's Kenseyan buffoonery. Doing nothing at all about the economy would leave us in far better shape than the trickle down government of Reich, Krugman and their ilk.
09:37 PM on 09/09/2012
That's because he doesnt know! Dah! If he did ,he would have done it already. Typical Obama supporter !
09:20 PM on 09/09/2012
Obama's energy policies caused prices to up across the entire supply chain
Obama's Obamacare caused huge price increases to insurance policies
Obama's unwillingness to let company's bring money back to the US where they've already paid tax in the country the money has been earned leads to lest money to invest here
Obama's unwillingness to create trade policies that were beneficial provide a lack of opportunities to trade goods
Obama's protection of artificial wages through Unions make our workers uncompetitive
07:47 AM on 09/10/2012
Nice collection of anti-Obama memes, junior. You must really be proud of yourself!
09:18 PM on 09/10/2012
memes -- that's the thing about truth -- it spreads fast