Friday, January 8, 2010

Recovery: Don't Believe The Hype

Innocent Bystanders has the graph showing the projected unemployment numbers without the Stimulus Package, the projected unemployment with the Stimulus and the current numbers.

Makes you wonder if it wasn't one big pay off.

Job Related.

December job reports are in. Buried in it is this gem:

Unemployment remains the Achilles heel of the economic recovery, which started in the third quarter of 2009 following the worst recession in 70 years. Creating jobs is critical to sustaining the economic recovery when government stimulus fades.

For the whole of 2009, the economy shed 4.2 million jobs, the department said.

Still the job market continued to show broad improvements last month, with a number of sectors showing gains.

Professional and business services added 50,000 positions, while education and health services increased payrolls by 35,000. Temporary help employment rose by 47,000.[emphasis mine]

The best way to create jobs is for the federal government get out of the way. The government really can't create a job. They help create the atmosphere for a business to operate in. As to how hostile or how friendly the atmosphere is depends on taxes, fines and penalties imposed on those businesses.

This should be self-evident to everyone from the high school drop out to the Dean of every Ivy League University. Even though I would expect the high school drop out to have a better understanding of how it worked.

As for the temporary help, it was December. Retailers everywhere hire extra help to help cover for the holidays. Much the same way that tax offices will be hiring extra accountants between now and April 15th. The holidays are now over and so are the temp jobs.

Don’t forget, the Stimulus was needed to keep unemployment below 8%. Change!

Thanks to Ace for the links.

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