All hail the jobless recovery!

posted at 1:39 pm on August 31, 2009 by Ed Morrissey

What a difference a (D) makes!  In 2003-4, George Bush got derided for talking about economic recovery during the 2004 election campaign while unemployment declined from 6.2% to 5.6%.  Critics derided it as a “jobless recovery,” including the Washington Post.  Now, however, an increase in unemployment has become a measure of improvement in the economy as it goes up to 9.5%:

The big news of the week should be Friday’s employment report, which many analysts suspect will show that the labor market, while still quite bad, continues on a path toward stabilization. Economists are expecting the unemployment rate to rise to 9.5 percent, from 9.4 percent, and for employers to have cut 228,000 net jobs in August, compared with the 247,000 jobs lost in March. That job loss number — or even better, a figure that starts with a “1,” would be strong evidence that improvement in the economy is finally filtering through to the job market in a serious way.

But there are reasons to doubt that will happen. Most notably, the rate of new jobless claims has failed to come down significantly in recent weeks, which suggests businesses are still eager to pare back their payrolls. Thursday, the Labor Department said 570,000 Americans put in new claims for unemployment insurance benefits, down only barely from 580,000 the previous week.

Really!  This is what the Post had to say in a news report from August 2004 about “jobless recovery”:

For President Bush, tax cuts have been an all-purpose elixir, a cure for budget surpluses and a bursting stock bubble, for terrorist attacks and boardroom scandals, for the march to war and a jobless recovery in peacetime.

Now, after three successive tax cuts, and after a record budget surplus has turned to a record deficit, the president faces an unenviable choice. He can either concede that his $1.7 trillion tonic has not worked as advertised, or he can insist that the economy is strong despite the slowdown in growth and job creation.

Unemployment at that time: 5.4%, down from 5.5% the prior month.

And this is what their editorial board said about jobless recovery in January 2004:

As Chairman Alan Greenspan said yesterday, the United States has lost jobs to foreigners before, yet it has always created others. The Fed committee that sets interest rates meets today and tomorrow, and will demonstrate one of the reasons why the new protectionism is misguided. This is not the first jobless recovery. In 1991-92 the economy grew steadily, but job growth was almost nil. …

Mr. Bush should not be blamed for this, though his irresponsible fiscal policy harms business confidence and therefore job creation.

Unemployment at that time: 5.7%, down from 6% in October.

Now the Post wants to hail a move from 9.4% to 9.5% in unemployment as “strong evidence” of economic recovery?

What a difference a (D) makes … to the coverage at the Washington Post.  (via Jim Geraghty)

Update: I mistakenly wrote 9.7% instead of 9.5% in the first paragraph (and got it right in the penultimate).  It’s fixed now.

Update II: We’ve featured this before, but this video from Frank Strategies more than two months ago is right on point:


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Bleeds Blue on August 31, 2009 at 2:24 PM

Well, since you are an Obama supporter I can’t blame you, but your spin is beyond ridiculous.

AUINSC on August 31, 2009 at 2:27 PM

Bleeds Blue on August 31, 2009 at 2:24 PM

Dead link.

BadgerHawk on August 31, 2009 at 2:27 PM

AUINSC on August 31, 2009 at 2:27 PM

It is pretty pathetic.

lorien1973 on August 31, 2009 at 2:27 PM

Spin all they want.
We who are unemployed simply know better…and we can vote, with or without a job.

bridgetown on August 31, 2009 at 2:28 PM

Of course, maybe the reason the msm rports good news more often during Democratic administrations is because there is more good economic news then, as Michael Kinsley pointed out last fall.

Bleeds Blue on August 31, 2009 at 2:24 PM

No, you’re just spinning.

The media changes the standard when Democrats are in charge, sort of how when the dork gets up to bat at the baseball game, the outfielders move about 50 feet in.

Media spots Leftists a huge handicap because, well because fundamentally even MSM knows Democrats are con men.

I suspect you know it too, deep down.

jeff_from_mpls on August 31, 2009 at 2:28 PM

I’m surprised, the WaPo editorial staff selling snake oil.

GarandFan on August 31, 2009 at 2:30 PM

daggett, that video is awesome. So many people on tape in JUNE saying the recession is over.

faraway on August 31, 2009 at 2:11 PM

Ditto. I suspect soon we will hear, “As I’ve said all along the stimulus plan will jumpstart the LOSS of 3-4 million jobs…”

Mr_Magoo on August 31, 2009 at 2:31 PM

The media changes the standard when Democrats are in charge, sort of how when the dork gets up to bat at the baseball game, the outfielders move about 50 feet in.

jeff_from_mpls on August 31, 2009 at 2:28 PM

Quote of the Day.

John the Libertarian on August 31, 2009 at 2:31 PM

P.S. I, and a dozen other people I’m aware of, aren’t even counted in those unemployment numbers. We aren’t receiving unemployment ‘benefits’.

So, what’s the REAL number, I wonder?

bridgetown on August 31, 2009 at 2:33 PM

If Leftards are looking for some help crafting their impossible message, let me recommend the following talking point:

The latest economic news indicates that President Obama’s plan is working precisely as planned“.

BTW the stock market is in a free-fall today as investors celebrate the invisible Obama recovery.

jeff_from_mpls on August 31, 2009 at 2:33 PM

Employment tends to be a lagging indicator, not a leading indicator.

Look at http://www.applet-magic.com/rec1980.htm to see what happened in the early 80s under Reagan. Unemployment rates didn’t begin to drop until there were two full quarters of significant GDP growth.

I wouldn’t expect any significant employment growth for most of the US until summer of next year at the earliest.

Jimbo3 on August 31, 2009 at 2:34 PM

The Liberals and Marxists currently running this Country tossed the “Where Are the WMD’s, George” charge around for 5 years.

Now they have their own petard upon which to be hoisted:

Where are the Jobs, Barry?

DrW on August 31, 2009 at 2:35 PM

Bleeds Blue on August 31, 2009 at 2:24 PM

Dead link.

BadgerHawk on August 31, 2009 at 2:27 PM

Trying the link again.

Of course, maybe the reason the msm rports good news more often during Democratic administrations is because there is more good economic news then, as Michael Kinsley pointed out last fall.

Bleeds Blue on August 31, 2009 at 2:24 PM

No, you’re just spinning.

The media changes the standard when Democrats are in charge, sort of how when the dork gets up to bat at the baseball game, the outfielders move about 50 feet in.

Media spots Leftists a huge handicap because, well because fundamentally even MSM knows Democrats are con men.

I suspect you know it too, deep down.

jeff_from_mpls on August 31, 2009 at 2:28 PM

Again, without addressing the larger issue of whether there is pro-D bias, this article in no way underscores that bias. It is a simple, pedestrian, “on the one hand, on the other hand” look at figures that will be released this week and a modest amount of analysis. Nowhere does it say that the recovery exists or that it is strong or that jobs are being created at particularly good or bad rate (or even that they are being created). It merely points out that good numbers would suggest good things, which is pretty unarguably true. It also says that there may very well be bad numbers, also true.

If you want to make a case, you might at least wait until the numbers come out and see how they’re spun after. That might actually be illuminating and not just a bunch of hot…oh, never mind.

Bleeds Blue on August 31, 2009 at 2:38 PM

President Obama’s own administration has projected an additional 2-3 million job losses in 2010.

They may have lost that many, but remember, they will have created or saved millions of jobs! Whatever the hell that means in the real world….

President Obama is on track to be named the greatest Presidential failure in US History.

jeff_from_mpls on August 31, 2009 at 2:17 PM

Actually, he is achieving what he set out to accomplish, and that is the destruction of the American way. And he did it in an amazingly short time.

By that measure, he’s one of the most successful Presidents evah.

UltimateBob on August 31, 2009 at 2:38 PM

Jimbo3 on August 31, 2009 at 2:34 PM

And that would be a wonderful argument if there were leading economic indicators to back up the filthy liar’s claim that we are out of the recession and the boon times are coming again.

Fact of the matter is that we are headed for a double dip recession as the next wave of foreclosures (commerical real estate this time) meet up with the expiration of the Bush tax cuts and the business-crushing attacks of the rat bastard traitor in the White House and his equally corrupt party. You don’t get jobs until businesses hire and business isn’t going to be hiring anytime soon under this administration.

highhopes on August 31, 2009 at 2:38 PM

I wouldn’t expect any significant employment growth for most of the US until summer of next year at the earliest.

Jimbo3 on August 31, 2009 at 2:34 PM

Which is fairly common knowledge. But the point of the post is the media bemoaning the jobless recovery in 2003/2004 (when the economy was actually growing), and their fawning now (when both the economy and the employment outlook are far from positive).

But good attempt at a red herring.

BadgerHawk on August 31, 2009 at 2:39 PM

At this point, we can look forward to 2 things in virtually every drive-by article or story about the economy:

1) They’ll always preface negative news with the word “unexpectedly”. It’s irrelevant whether or not a bunch of economists or pundits or regular folks or even the CBO itself were dead on with their predictions, any bad economic numbers will come as a complete surprise.

2) No matter how bad the news is, there will be a positive side to it and the emphasis of the story will be on that aspect.

Doughboy on August 31, 2009 at 2:39 PM

If anyone has already said this, please accept my apologies; I’m just jumpin’ in here.

If Chicago Jesus Lord of Lords and King of Men has “fixed” the economy then why not repeal Porkulous? Hmmm?

Key West Reader on August 31, 2009 at 2:41 PM

“As I’ve said all along the stimulus plan will jumpstart the LOSS of 3-4 million jobs…”

Mr_Magoo on August 31, 2009 at 2:31 PM

Just wait until the Dems push through the individual mandate for health insurance and the employers fined for non-compliance and/or have increased bureaucratic costs due to reporting requirements to the IRS. Then add in the jobs lost through cap & trade. And for fun, through in the job loss/contraction due to the Bush tax cuts expiring……

Whole lot a fun ahead of us despite that Rose Garden announcement that we were out of the recession and the champagne would be flowing in the streets shortly.

highhopes on August 31, 2009 at 2:43 PM

Bleeds Blue on August 31, 2009 at 2:38 PM

Why do you have to wait? History didn’t start today.

Look at previous months reporting of the unemployment numbers. Then compare and contrast how numbers were reported during Bush.

But you won’t. Cuz you don’t care. You’re just a mindless partisan.

lorien1973 on August 31, 2009 at 2:43 PM

The media changes the standard when Democrats are in charge, sort of how when the dork gets up to bat at the baseball game, the outfielders move about 50 feet in.

jeff_from_mpls on August 31, 2009 at 2:28 PM

Yes, and little Johnny’s mommy is sitting on the bleachers yelling, “Don’t worry Johnny! You’re all winners just for trying!”

Mr_Magoo on August 31, 2009 at 2:44 PM

Not bloody likely! Wake up and smell the bull$hit!

Mr_Magoo on August 31, 2009 at 2:41 PM

When King GlowBama takes over all student loan funding I’m certain that they’ll see a turn in their profits. I’m fully awake and donning my anti-Bullshizz mask.

Key West Reader on August 31, 2009 at 2:44 PM

I just read today that stocks in commie Venezuela went up again last week … For all those who think the US stock market rally is real.

tarpon on August 31, 2009 at 2:48 PM

I hear ya highhopes.

O/T: I saw this morning on HLN (I watch it hear Robin Mead say “wake up sleepyhead” while making coffee) that the Making Homes Affordable Program is a bust. Something like less than 300,000 mortgages affected out of a qualifying 6 million? Supporters say it has been a success but has the usual growing pains. Critics point to examples of massive paperwork, being denied after clearly qualifying, etc.

Mr_Magoo on August 31, 2009 at 2:48 PM

Bleeds Blue, here is yet another example of spin:

Dell Sees Better PC Sales Ahead Despite Drop in Profits
By Mike Kent
August 27, 2009 2:33PM

An optimistic Dell beat analysts’ estimates despite a 23 percent drop in profits for its fiscal second quarter. Like rival Hewlett-Packard, Dell expressed expectations for higher sales. Dell focuses on corporate clients and has reduced costs to be ready for pickup in IT spending. Sales of laptops fell less than sales of desktops in the quarter.

Dell said it sees better days ahead even as it reported a 23 percent drop in its fiscal second-quarter profit on Thursday. The company echoed larger rival Hewlett-Packard , which last week reported a 19 percent drop in profit but also expressed optimism.

Well, duh, I guess if your sales suck you have to expect they’ll improve. Otherwise, you’d walk in front of a bus. And if you’re just browsing the headlines, it all looks pretty rosy. Think this headline would have been the same if a Republican were in the WH? Not bloody likely! Wake up and smell the bull$hit!

I’m sorry, an obscure article drawn (apparently) entirely from a investor relations department press release in an obscure on-line (not MSM) publication is supposed to prove media bias? If this is the best you can do, you should give up.

Why do you have to wait? History didn’t start today.

Look at previous months reporting of the unemployment numbers. Then compare and contrast how numbers were reported during Bush.

But you won’t. Cuz you don’t care. You’re just a mindless partisan.

lorien1973 on August 31, 2009 at 2:43 PM

My recollection has been that the reporting has been varied based on the numbers. There have been a lot of negative “Obama underestimated…” and “worse than expect” stories, and good stories last month when employment dropped.

Bleeds Blue on August 31, 2009 at 2:50 PM

Ditto. I suspect soon we will hear, “As I’ve said all along the stimulus plan will jumpstart the LOSS of 3-4 million jobs…”

Mr_Magoo on August 31, 2009 at 2:31 PM

I’ve been saying that since they started considering a stimulus bill.
Okay, I never gave numbers, but you get the idea.

Count to 10 on August 31, 2009 at 2:52 PM

Look at this from the Dallas Fed:

http://dallasfed.org/research/update-us/2009/0905.cfm.

It shows some positive numbers for July.

Jimbo3 on August 31, 2009 at 2:52 PM

My recollection has been that the reporting has been varied based on the numbers. There have been a lot of negative “Obama underestimated…” and “worse than expect” stories, and good stories last month when employment dropped.

Bleeds Blue on August 31, 2009 at 2:50 PM

Bush:

Unemployment goes from 6.3 to 5.7 – jobless recovery.

Obama:

Unemployment goes from 7.6 to 9.5 – recession is over.

Yeah. It’s “varied based on the numbers” alright. Or what party is in office. Either one, really.

lorien1973 on August 31, 2009 at 2:53 PM

and when the healthcare industry lays off
Office and administrative support occupations
2,446 ,000 people

what will that number look like then?

UNREPENTANT CONSERVATIVE CAPITOLIST on August 31, 2009 at 2:55 PM

got forbid what cap and trade will do

UNREPENTANT CONSERVATIVE CAPITOLIST on August 31, 2009 at 2:56 PM

Again, without addressing the larger issue of whether there is pro-D bias,

Bleeds Blue on August 31, 2009 at 2:38 PM

The link worked, and while interesting, I’d have several objections to the methodology (mainly its attempting to draw a solid conclusion from an amazingly simple analysis).

Please tell me you’re not one of those on the left who think the media has a conservative slant.

BadgerHawk on August 31, 2009 at 2:56 PM

I don’t have much confidence in the lagging/leading indicator business in this case. Too many things are going on that are unprecedented.

Things are still getting worse as far as I’m concerned; with the exception of three things that are getting plenty play in the media now that they are in the business of talking up the economy.

1. “stocks have gone up” – I’m not to excited by this because stocks were panicked down too far and companies have improved their bottom lines and productivity by firing hundreds of thousands of employees. Look a little better to investors, but not so much to me.

2. “car sales were up” – Temporary result of subsidies

3. “housing sales are up” – also the result of government subsidies. What is it, an $8000.00 kick back? Whatever it is, it’s hard to tell if the increase is at all real, or just the temporary result of government writing checks.

forest on August 31, 2009 at 2:56 PM

But just think of how bad things would be without all of those saved jobs.

Akzed on August 31, 2009 at 2:57 PM

Chairman Soetoro is fortunate to have so many loyal comrades in Neo-Pravda….

Dow 9,476.41 -67.79 (-0.71%)
NASDAQ 2,005.54 -23.23 (-1.15%)
S&P 1,019.28 -9.65 (-0.94%)

Notice when stock market had 8 straight days of “growth” ranging from 2.1 points to 45 points it was sign “KomradeRecovery Plan” was working….

now after day goes 70 or so wrong way story is “all China’s fault”….

sven10077 on August 31, 2009 at 2:58 PM

This economy is still in shambles and no amount of lying and pandering by the mainstream media can change that fact. The people on the receiving end of this disaster know the difference and they won’t be fooled by Obama and his media propagandists.

rplat on August 31, 2009 at 2:59 PM

My recollection has been that the reporting has been varied based on the numbers. There have been a lot of negative “Obama underestimated…” and “worse than expect” stories, and good stories last month when employment dropped.

Bleeds Blue on August 31, 2009 at 2:50 PM

Bush:

Unemployment goes from 6.3 to 5.7 – jobless recovery.

Obama:

Unemployment goes from 7.6 to 9.5 – recession is over.

Yeah. It’s “varied based on the numbers” alright. Or what party is in office. Either one, really.

lorien1973 on August 31, 2009 at 2:53 PM

Except 1) quoting two articles five years apart hardly proves a trend

2) Both of those could be true. 6.3 to 5.7% is — compared to other recoveries — a low job creation figure. And a recession could end as jobless rates climb, because job growth lags economic expansion and because the end of a recession doesn’t really mean things are going well, just that they’re not getting worse.

Bleeds Blue on August 31, 2009 at 3:01 PM

Again, without addressing the larger issue of whether there is pro-D bias,

Bleeds Blue on August 31, 2009 at 2:38 PM

The link worked, and while interesting, I’d have several objections to the methodology (mainly its attempting to draw a solid conclusion from an amazingly simple analysis).

Please tell me you’re not one of those on the left who think the media has a conservative slant.

BadgerHawk on August 31, 2009 at 2:56 PM

No.

Bleeds Blue on August 31, 2009 at 3:02 PM

A few weeks ago, it was at 9.5% expected to go to 9.6%. Instead it went down to 9.4%.

The whitehouse when into overdrive talking that we have turned the corner. Light at the end of the tunnel. Tide has turned. All the metaphors. really stupid.

Well now back up to 9.5% So are we back into the crapper now?
Goes down. Good news. Goes up. Good news.

kurtzz3 on August 31, 2009 at 3:03 PM

Except 1) quoting two articles five years apart hardly proves a trend

2) Both of those could be true. 6.3 to 5.7% is — compared to other recoveries — a low job creation figure. And a recession could end as jobless rates climb, because job growth lags economic expansion and because the end of a recession doesn’t really mean things are going well, just that they’re not getting worse.

Bleeds Blue on August 31, 2009 at 3:01 PM

Man…you are really struggling today, aren’t you?

genso on August 31, 2009 at 3:03 PM

Bleeds Blue on August 31, 2009 at 3:01 PM

1) Nope. Definitely not. You could go back further if you liked. It’s a pattern. Republican in office = all economic news is bad news. Democrat in office = all economic news is good news.

Don’t play obtuse with me.

2) Okay, 6.3 -> 5.7 is a low job creation figure. But 7.6 -> 9.5 is what, exactly?

Throw me a bone here. Show me you have a functioning cerebellum.

lorien1973 on August 31, 2009 at 3:04 PM

Bleeds Blue on August 31, 2009 at 3:01 PM

Seriously, dude. The cognitive dissonance here is making my brain hurt.

lorien1973 on August 31, 2009 at 3:05 PM

No.

Bleeds Blue on August 31, 2009 at 3:02 PM

Thank goodness. For a second I was worried we’d never be able to talk any sense into you. The ‘corporate media’ argument is a dead giveaway that an individual is beyond hope.

BadgerHawk on August 31, 2009 at 3:08 PM

Seriously, dude. The cognitive dissonance here is making my brain hurt.

lorien1973 on August 31, 2009 at 3:05 PM

being a donk means never have to say, “I’m sane”….

Chairman Ogabe sees nonstop bleeding of jobs, “RECOVERY IS HERE!”….

Bush sees 56 months of consecutive growth that was reported on as though it was “The Grapes of Wrath”….

nah no bias, move along

sven10077 on August 31, 2009 at 3:08 PM

Dow 9,463.03 -81.17 (-0.85%)
NASDAQ 2,002.57 -26.20 (-1.29%)
S&P 1,017.78 -11.15 (-1.08%)

Chairman Soetoro’s “Daily Tracking Poll”….not being given ownership of today’s market like he was that 8 day spurt there Blue….why is that?

sven10077 on August 31, 2009 at 3:10 PM

It’s amazing that Republicans can compete at all with the playingfield so unlevel.

Scrappy on August 31, 2009 at 3:11 PM

Say, has anyone heard anything about Obama’s vaunted green economy and green energy programs?

Why does Obama continue to insist on handcuffing our economy with his green-energy economy nonsense?

For crying out loud. Unleash Americans and get everything going: offshore drilling, natural gas, coal, nuclear, and all that Obama energy that might contribute as much as 10% of our energy needs.

BuckeyeSam on August 31, 2009 at 3:14 PM

…suggests businesses are still eager to pare back their payrolls…

The businesses that I talk to agonize over letting people go. What’s with this eager editorializing??

Peri Winkle on August 31, 2009 at 3:15 PM

Peri Winkle on August 31, 2009 at 3:15 PM

Eager doesn’t necessarily imply happiness/joy in this sense.

lorien1973 on August 31, 2009 at 3:21 PM

Say, has anyone heard anything about Obama’s vaunted green economy and green energy programs?

Why does Obama continue to insist on handcuffing our economy with his green-energy economy nonsense?

For crying out loud. Unleash Americans and get everything going: offshore drilling, natural gas, coal, nuclear, and all that Obama energy that might contribute as much as 10% of our energy needs.

BuckeyeSam on August 31, 2009 at 3:14 PM

That will fall on whatever or whomever picks up chairman Mao’s mess….

Frankly I don’t see how he has the will or sense to resist the urge to bail out California, when that happens the states that practiced a reasonable amount of fiscal prudence will watch their fellow state who went hell bent for leather stupid getting rewarded. The bailout of California will have repercussions on the Union.

sven10077 on August 31, 2009 at 3:21 PM

I believe its time we trade that Cap & Trade for some jobs.

ITS THE ECONOMY STUPID

bluegrass on August 31, 2009 at 3:25 PM

Say, has anyone heard anything about Obama’s vaunted green economy and green energy programs?

Why does Obama continue to insist on handcuffing our economy with his green-energy economy nonsense?

For crying out loud. Unleash Americans and get everything going: offshore drilling, natural gas, coal, nuclear, and all that Obama energy that might contribute as much as 10% of our energy needs.

BuckeyeSam on August 31, 2009 at 3:14 PM

Meanwhile, Japan continues to step ahead of anything that the US is doing and look where they are doing it. In Iraq and the Netherlands. This doesn’t even take in account the movements of the Chinese. In the meantime Dear Leader bankrolls Soros in a deal that won’t help the US at all.

http://www.nni.nikkei.co.jp/e/fr/tnks/Nni20090831D3ZHH510.htm

http://www.nni.nikkei.co.jp/e/ac/tnks/Nni20090828D28HH240.htm

genso on August 31, 2009 at 3:30 PM

The only economic indicator that is showing any reliable signs of life, is the stock market, and that is being influenced more by the increase in the money supply, than by anything happening in the economy.

There are other indicators that occassionaly show a one month blip of positive data, but then return to bad news the next month.

MarkTheGreat on August 31, 2009 at 3:36 PM

The only economic indicator that is showing any reliable signs of life, is the stock market, and that is being influenced more by the increase in the money supply, than by anything happening in the economy.

There are other indicators that occassionaly show a one month blip of positive data, but then return to bad news the next month.

MarkTheGreat on August 31, 2009 at 3:36 PM

MtG correct and Fed Chairman Weekend at Bernkake is already saying he HAS to restrict the printing press economy….the argument is in 2010, 2011, or 2012….

if he waits until 2012 it is SOLELY to help Chairman Ogabe….

$2,000,000,000,000. That’s the amount by which the Obama administration raised its ten-year estimate of the nation’s budget deficit from the one it made only a few months ago. Now, $2 trillion is a lot of money. But even more significant is the fact that this revision represents almost a 30 percent increase — no tiny percentage of the earlier $7 trillion figure. It seems that expenses are higher — up 24 percent this year, the largest increase since the height of the Korean War — than originally estimated, and revenues are lower. The resulting deficit, says Peter Orszag, Obama’s budget director, is “higher than desirable”. He might have added that the administration’s critics had it right when they claimed that the earlier estimate represented a turn around the dance floor with that old seductress, Rosy Scenario.
There’s worse: the new estimate assumes that Medicare and Medicaid spending will be cut by $622 billion, even though Congress has made it know that it is reluctant to make any such cut. Then there is the $600 billion in revenue included for the sale of emission permits, despite the fact that the House has given away so many permits in order to buy support for the cap-and-trade emission-reduction that the program will produce at most $450 billion. Those two items alone come to almost another trillion dollars in red ink. Throw in another trillion-plus for Obamacare, and it is no surprise that senior economist Bill Gale, at the liberal Brookings Institute, says that the deficit will hit over $10 trillion over the next decade, a figure he finds “deeply alarming”.

This year, the deficit will come to 11.2 percent of GDP, and by 2019 the debt will be equal to 76 percent of the value of the nation’s output of goods and services, almost double the 41 percent when Obama took control of the nation’s finances. No problem, say White House economists. Unsustainable, says Warren Buffett, among others.

sven10077 on August 31, 2009 at 3:39 PM

Mr_Magoo on August 31, 2009 at 2:48 PM

Let’s not forget, that just like Cash for Clunkers, most of those applying for mortgage deduction, aren’t aware that this benefit is also taxable.

Gonna be quite a surprise for a lot of people next year when the govt tells them they owe another $2k to $4k in taxes they hadn’t budgeted for.

MarkTheGreat on August 31, 2009 at 3:42 PM

Part of the increase in housing prices we have seen in the last quarter is due to the “Making Homes Affordable Program”. When it expires, so will the bump in prices.

MarkTheGreat on August 31, 2009 at 3:43 PM

I can only judge from my own perspective. In my family the bulk of employment is either sole proprietorships or small business. While these are not(yet)in danger of collapse, their businesses have declined slightly and seem to be staying that way for the present. No hiring is going on or is likely to be for a while, however, there is no prospect of any more lay offs in the forseeable future as these businesses are pared down pretty much as far as they can be. I hear them described as just rocking along in the same groove pretty much. No one is using the word ‘stagnation’ yet, and hope they don’t have to.

jeanie on August 31, 2009 at 3:48 PM

I’m sorry, an obscure article drawn (apparently) entirely from a investor relations department press release in an obscure on-line (not MSM) publication is supposed to prove media bias? If this is the best you can do, you should give up.
Bleeds Blue on August 31, 2009 at 2:50 PM

Nice. I particularly liked the dismissive “you should give up” comment. David Axelrod is really getting his money’s worth with you.

So from CNN Money:

HP sees biz stabilizing as PC shipments rise
World’s biggest tech company says PC sales rose in the past quarter. Though overall revenue dips, company says business is stabilizing.

By David Goldman, CNNMoney.com staff writer
Last Updated: August 18, 2009: 6:25 PM ET

Mainstream enough? The gauge is not so much what you think is main stream but what has the rep for appearing on the screens of the uninformed. I think CNN Money falls into that category.

Mr_Magoo on August 31, 2009 at 4:07 PM

And a recession could end as jobless rates climb, because job growth lags economic expansion and because the end of a recession doesn’t really mean things are going well, just that they’re not getting worse.

Bleeds Blue on August 31, 2009 at 3:01 PM

Isn’t that really the point of all this? Bush didn’t get that kind of spin even though the rates were actually going down.

And isn’t the gauge of a recession directly tied to the GDP? “Not getting worse” is not the barometer of when a recession is ending.

Bleeds, I think you’re hemorraging. You should lie down and put your feet up.

Mr_Magoo on August 31, 2009 at 4:19 PM

And isn’t the gauge of a recession directly tied to the GDP? “Not getting worse” is not the barometer of when a recession is ending.

Mr_Magoo on August 31, 2009 at 4:19 PM

I wish things were that good. In reality, the best that can be said for the economy, is that it isn’t getting worse, as fast as it was earlier in the year.

MarkTheGreat on August 31, 2009 at 4:27 PM

The bailout of California will have repercussions on the Union.

Exactly – once states see that the Bed Crapper in Chief is only going to confiscate the results of fiscal restraint to divert to the corrupt/incompetent blue states, then it will be a race to the bottom.

Why not spend it on pork here, rather than there?

NoDonkey on August 31, 2009 at 4:36 PM

Biased press???What biased press?

Terrye on August 31, 2009 at 4:43 PM

You know what would fix all this? Another minimum wage increase. The Perfect Cheer!

a capella on August 31, 2009 at 2:06 PM

There, fixed. :)

Onus on August 31, 2009 at 4:48 PM

By the skillful and sustained use of propaganda, one can make a people see even heaven as hell or an extremely wretched life as paradise.

-Hitler-

We are in a Recovery! We have Always been in a Recovery! This is so much better than G.W. Bush! Look, Unicorns!

GunRunner on August 31, 2009 at 5:32 PM

What a difference a (D) makes!

.
Oh my that’s good.

ronsfi on August 31, 2009 at 5:43 PM

It’s only obvious that, Hussein and his Posse of Clowns, will continue to blame Bush b/c they have NO clue on how to recover a failingfailed economy!

Lowering the unemployment could certainly help but what do they, Hussein and his Posse of Clowns, know?

BigMike252 on August 31, 2009 at 5:51 PM

Economists are expecting the unemployment rate to rise to 9.5 percent, from 9.4 percent, and for employers to have cut 228,000 net jobs in August, compared with the 247,000 jobs lost in March. That job loss number — or even better, a figure that starts with a “1,” would be strong evidence that improvement in the economy is finally filtering through to the job market in a serious way.

They are hoping for 10% unemployment rate to have strong evidence that improvement in the economy is finally filtering through? Or are they hoping for 1%? If they are, better reverse all engines immediately!

unclesmrgol on August 31, 2009 at 6:24 PM

Exactly – once states see that the Bed Crapper in Chief is only going to confiscate the results of fiscal restraint to divert to the corrupt/incompetent blue states, then it will be a race to the bottom.

Why not spend it on pork here, rather than there?

NoDonkey on August 31, 2009 at 4:36 PM

OR there will start to be a push by the poorer but sensible states to make regional enclaves of fiscal independence and sense.

I sort of look forward to a SCotUS case wherein the men and women in black explain that the debtor states stealing the creditor states wealth is the system “as intended, rendered, and designed.

sven10077 on August 31, 2009 at 7:12 PM

He re-shaping America alright

bluegrass on August 31, 2009 at 8:35 PM

Don’t know if this was already posted but…

continues on a path toward stabilization.

Are they saying we will stabalize around 9.5% – 10.0%?

cobrakai99 on August 31, 2009 at 9:28 PM

Beltway Pravda.

Look people the unemployment rate is not 9.5% The actual unemployment number is over 16%. Remember the government changed the way they report this.

here is the actual unemployment numbers by state:
http://www.bls.gov/lau/stalt.htm

If you go here you can get the current U-6 unemployment rate:
http://www.bls.gov/webapps/legacy/cpsatab12.htm

Its 16.8%

and here:
http://www.bls.gov/news.release/empsit.t12.htm

Do not accept the spoon fed news, the state media statistics or their explanations for ANYTHING.

You know another good government site to read? The bureau of justice statistics.

The energy department is also an eye opener.

dogsoldier on September 1, 2009 at 9:39 AM

Oh and how can the economy stabilize with thousands of people exhausting their benefits and losing their homes?

Bozo is golfing while the economy is circling the drain…

Liberals engaging in wishful thinking.

dogsoldier on September 1, 2009 at 9:41 AM

ObamaSpeak
You don’t need jobs for an economic recovery.
You don’t even need recovery in the economy for there to be a true economic recovery. See how easy it is?

JellyToast on September 1, 2009 at 11:10 AM

dogsoldier on September 1, 2009 at 9:39 AM

Thanks for the links

The next tale of the saga is just beginning as tax revenue drop hits gov budgets, state, local, fed

Commercial real estate balloon is moving to crash

Around here, govs are not reducing property tax to match drop in market, but lose anyway as houses are abandoned with unpaid taxes

Many spirals continue unchecked

entagor on September 1, 2009 at 11:40 AM

All hail the jobless recovery!

During the 1930 depression, Keynesian economics was used by FDR, and miserably failed. FDR could never get unemployment below 14%. Sadly, it took WWII to save the nation. It then took another twenty years after WWII for the economy, with decent employment to finally stabilize. The Obama administration are using the same failed approach.

Fast forward, the democrats know all of this, however still send large blocks of monies upward into worthless spending programs, whereas, tax dollars become lost in corruption and mis management. The fastest and cleanest way for recovery is directly from the IRS to you, via tax refunds, breaks, rebates. Direct government tax refunds removes the corrupt middlemen. But tax breaks doesn’t allow politicians in on your tax dollars, and we can have that, hence, massive, worthless, deficit spending stimulus packages.

byteshredder on September 1, 2009 at 3:13 PM

“pare the payroll” ???

Hell no – many of us have simply moved jobs offshore, like to India, via odesk.com

…and if you are paying $4 an hour, it’s unlikely that job is ever going to come back to our shores, isn’t it?

Isn’t global communications wonderful? To bad the US Government has not figured it out yet….

ElRonaldo on September 1, 2009 at 3:52 PM

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