The numbers are in and 429,000 initial jobless claims were filed last week, higher than the expected 415,000. This marks the second of three weeks of an increase in unemployment claims. The markets were already down this morning due to yesterday′s dismal Federal Reserve report and lack-luster press conference by chairman Ben Bernanke. The Fed downgraded their outlook for GDP growth and Bernanke left the door open for a possible third round of quantitative easing, even though most see this as inflationary. The actual unemployment rate has not been changed, though the idea that it is only 9.1% is becoming more ridiculous. With over 10 million jobs lost, 14 million unemployed seeking work and another 3 million whom have given up, the actual unemployment rate is closer to 16%, if not higher.
Today′s jobless claims numbers is yet another indicator of the folly of the Barack Obama economic agenda. A growing number of Americans believe we are on the wrong track, as there is no evidence that the government can create jobs through direct fiscal stimulus. Many companies are holding back hiring due to the uncertainty of the Obama healthcare law. The recent survey done by McKinsey & Company showed that 30-50% of employers are considering dropping their health insurance coverage by 2014. That they would rather pay the $2,000 fine than the estimated $6,400 per year to provide employees with basic coverage. Small businesses are holding back, staying below the 50-employee limit, to skirt the job-killing law.
It is abundantly obvious that only new leadership in the White House will end the ongoing cycle of worse and worse jobs reports. In addition to repealing and undoing everything Obama has done the past 30 months, a real domestic energy policy which allows for more drilling and mining, along with tax and regulatory reforms are needed to free the private sector and allow the economy to grow. Too much time and money is being wasted on compliance with the excessive laws from the Federal government. Reducing government spending and balancing the budget would also allow for more capital to be used for growth and job creation instead of just servicing the national debt.
With 429,000 initial jobless claims filed last week, Barack Obama and his collection of dolts in the White House are in serious trouble. Come November 2012, they will probably find themselves joing the ranks of the unemployed.