Initial Jobless Claims Continue To Rise
The media and the Obama administration continually spin the jobless claims numbers. The initial jobless claims go up or down weekly. When the number goes down, the media and the Obama administration hail the falling initial jobless claims as a sign that Obama’s policies are working. When the numbers go up the answer is that the unexpected rise in initial jobless claims reminds us that the recovery will take a long time.
The trendline of initial jobless claims has been steadily rising since October. This initial jobless claims chart shows how the weekly number moves up and down, but the trend is continually increasing.
The massive hiring of census workers over the last few months has somewhat masked the worsening picture. The growth of hiring in the public sector has kept the unemployment rate from moving away from 9.7%. It is also important to note that the census jobs are temporary and will end is several months.
Small businesses and large corporations need to start hiring in order for the unemployment rate to decline. Raising taxes and creating new credits a few thousand dollars will not lead to new jobs being created. Hiring in the public sector is also not the answer as those jobs are funded by taxes collected on the private sector.
The Obama administration needs to get serious about creating jobs. A first step would be a massive cut in government spending eliminating the deficit and attacking the debt.
Income tax cuts for individuals and companies would further stimulate the economy. This would be accomplished through reductions in the tax rates and not through credits which only transfer money from the 53% of people who income taxes to the 47% of people who do not pay income taxes.
Sadly, the odds of this happening are low as these steps place more power in the free market and takes power away from Washington.