President Obama has a huge problem: jobs. As in, lack of them. As in, not creating any. He promised them on the campaign trail, and he promised them as part of the $1.2 trillion stimulus package he signed a year ago.
After one year in office, with a huge majority in Congress, he has accomplished remarkably little, which is a relief to a Conservative. He has spent an inordinate amout of time, resources and energy wrangling over socialized medicine and cap and trade, and the unemployment remains stubbornly high.
Tomorrow, employment data will be released for January. Weekly initial jobless claims for unemployment insurance has been running about 470,000, and this week the number hit 480,000. The employment sector will not grow until initial jobless claims fall below 400,000. We’re still a long way off.
There are two factors in play. The President has been jawboning big business for the last three years, while on the campaign trail and since his inauguration. Business will not hire workers without some stable signs of an increase in aggregate demand, and as long as this administration sends a daily message as being opposed to big business, and banks in particular, stability cannot happen. Businesses will hire when owners and managers are convinced that there will be stable demand for their products and services. Right now, there is no stability, and no assurance from Washington that stability is part of their economic program.
So, here we are, stuck in a economic vacuum. The Obama team continues down a course of job losses (even though they’re convinced they’re right), and no concrete plans to move the nation forward toward economic prosperity. It would almost be comical if the consequences weren’t so severe. But then again, the November elections are coming fast. And the current economic malaise bodes very well for Conservatives.