Obamas Magic Trick: Disappearing Private-Sector Jobs

From the IBD:
http://bit.ly/4Pndyd

Mr. Higgs writes a great piece detailing what the job data is telling us and it's not a pretty picture.

"We find that the loss of employment has occurred entirely in the private sector, where employment fell from 115.4 million in 2007 to 109.5 million in 2009, a decline that took private employment back to its level at the end of the 1990s."

"While private employment was collapsing, government payrolls have been increasing, ticking up slightly from 22.2 million in 2007 to 22.5 million in 2009, an increase of roughly 1.7 million above the 2000 level."

"Monthly data for 2009 display this difference starkly. From December 2008 to December 2009, total employment fell from 135.1 million persons to 130.9 million, while government employment remained essentially constant at 22.5 million."

"This situation bears an eerie resemblance to the employment situation during the Great Depression, when private nonfarm hours worked fell steeply from 1929 to 1932 and did not return to 1929 levels until 1941, while millions were added to government payrolls during the New Deal. In both cases, the possibility that government employment crowds out private employment, rather than stimulating it, should not be dismissed."

Money quote:
"Keynesians like to suppose that whenever the government undertakes new spending to augment the ranks of its employees a multiplier effect will result, causing private economic activity and employment to follow the same upward course. The jobs data tell a different story."

Big Brother gets bigger regardless of the economy. That's a universal constant. Like Death and Taxes.

Down with Big Brother!

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