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Oct
20

Harsh Reality

Harry Reid on why the $35 Billion dollar Son of Porkulous bill is so vital to America....

Senate Majority Leader Harry Reid (D-Nev.) on Wednesday indicated Congress needs to worry about government jobs more than private-sector jobs, and that this is why Senate Democrats are pushing a bill aimed at shoring up teachers and first-responders.

"It's very clear that private-sector jobs have been doing just fine; it's the public-sector jobs where we've lost huge numbers, and that's what this legislation is all about," Reid said on the Senate floor.

This is news indeed to the millions of people who are unemployed or under-employed (like I am).

Over at National Review, Jim Gerghaty has a cold hard dose of reality for Senator Reid.

Most recent number of government employees at all levels, according to the Bureau of Labor Statistics: 21,985,000.

 

Recent peak: 22,980,000, in May 2010.

 

So from the peak, probably fueled by Census hiring, to our recent “low” that so concerns Sen. Reid, is 995,000 jobs. The Census is estimated to create about 1 million temporary jobs, or by some estimates, 1.2 million jobs. In other words, while some government offices and agencies have undoubtedly laid off some workers, it has been offset by hiring elsewhere, except for the bump in government jobs created by the Census.

Number of government workers the month President Obama took office: 22,582,000.

Last time the number was around the current level of 21.9 million: July 2006.

The private sector, unsurprisingly, tells a different story.

Most recent total number of all private-sector employees, according to the Bureau of Labor Statistics: 109,349,000 (preliminary September 2011 number).

Recent peak: 115,610,000, in January 2008. It hit 115 million in February 2007 and remained above that threshold until June 2008.

Recent low: 106,772,000 in February 2010. It went below 108 million in June 2009 and remained below that threshold until December 2010.

Range from the recent peak to the recent low: 8,817,000.

You may note that since February 2010, private-sector employment has increased by 2,577,000, and think, Oh, that’s not too bad! That’s about 1.28 million jobs per year! But the size of the labor pool normally grows from month to month, and while economists disagree on precisely how many jobs need to be added each month just to keep pace with the additional workers, it generally ranges from 100,000 per month (AP) to 100,000 to 125,000 (Heritage Foundation) to about 130,000 (New York Times). In other words, the economy needs to add 1.2 million to 1.56 million jobs per year just to keep the unemployment rate at the same level.

The best you could say is that private-sector job growth is almost good enough to keep pace with the growing size of the labor force. That seems like an extraordinarily low bar to set for “just fine.”

If this weren't such a harsh reality for so many, such a foolish mis-statement would be comical....ranking right up there with George H.W. Bush saying we weren't in a recession during his Presidency.  While technically he was correct, that didn't help the millions who didn't have jobs and were losing their homes then.  What happened then should frighten the Democrats.  Bush and the GOP lost (badly) to Bill Clinton and the Democrats.

What is that pesky old saying about what happens to those who don't "learn" from history?

Written by LL.

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