Earlier this year the Obama administration promised that there would be one million new jobs created for every percentage of the GDP growth. GDP has grown already because of President Obama’s stimulus spending but there is no new jobs created. Still, the administration seems to be pleased to take credit for 650,000 state and local positions after burning through roughtly $150 billion of stimulus. And this is a figure of jobs saved and not new jobs created.
I don’t understand why the Obama administration would be so proud of having saved “only” 650k jobs. If you do the math, with the $150 billion of stimulus spending, it cost $230,000 for each job saved. The median income of US household is $52,029. This means that the government is spending about 4 times of that in order to create or save jobs.
That calculation is if there actually were about 650,000 jobs saved or created. Apparently according to the official government stimulus website, Recovery.gov, the number of positions created or saved directly by federal contracts is only around 30k to date.
A government report actually showed that the economy has grown 3.5% between July and September. Unofficially, that really is a confirmation that the recession has ended. However, not only did Obama failed to fullfill his promise to create 1 million jobs for each percentage of growth, the high level of joblessness will continue to persist for months and even years to come.
One of the signs of recovery that people are optimistic about was the fact that stock had surged. But as soon as the report by the government was out, stocks tumbled one day later, on Friday which wiped out more than the previous day’s gains. So it seems that what Americans are holding on to in order to believe that the recession is over, apparently are not really showing signs of recovery. Moreover, the government report also showed that personal spending fell o.5% in September and this is adding even more to the gloom as it is the largest drop in about 9 months. With all these gloomy numbers, Obama’s assertion that the stimulus program had created or saved “650,000″ jobs, completely failed to supply any traction.
It is probably understandable if Obama wants to keep his report optimistic in order to encourage consumer spending. However, he could not be too upbeat. The reason for this is that next week, the government has another report due. This coming report will show unemployment over 10% in October after it had reached a 26-year high of 9.8% in September.
Although many Americans would rather believe a few economic analysts that state the economy is recovering and the worst is behind, statistics say otherwise. After all, it turns out that Gerald Celente’s forecast was accurate… that there is no recovery and that all this is only a cover up by the government.
Yet Obama couldn’t be too upbeat, knowing another government report is looming — one due next week — that could show unemployment topping 10 percent in October after reaching a 26-year high of 9.8 percent in September.
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