So, we learned today that our economy lost 35,000 in February and the Unemployment Rate was 9.7%. Markets loved it and so did the Obama Administration - what the heck things are getting worse much less slowly - hurray.
Quite frankly this unacceptable. And what kind of response do we get from Washington: a token response of $18 billion "Jobs Bill". This "Jobs Bill" is a joke. We need "overwhelming force" to address this Jobs Crisis.
This is war, this is a major Jobs Crisis. Here are a few more numbers to chew on (ht Calculated Risk):
The economy has lost almost 3.3 million jobs over the last year, and 8.43 million jobs since the beginning of the current employment recession.
But the long-term job prospects are not any better. This from the President's own Office of Management and Budget projects the following Unemployment Rate:
First, President Obama can kiss his re-election hopes good-bye if unemployment is that high in 2011-2012. Second, it is absolutely pathetic that this Administration would accept such horrible unemployment rate projections without offering much much stronger solutions. They could do something about it but unfortunately won't because this President lacks the courage and leadership to do it.
A Jobs Crisis like this one requires "overwhelming force" to be used. We are in the hole - 8.43 million jobs. The effectiveness of the weak and poorly designed American Reinvestment and Recovery Act of 2009 is wearing off and the $15 billion Jobs Bill currently in Congress is too weak as well. We need something much stronger.
The deficit be damned. We are facing significant long term consequences and social costs with high long term unemployment. Now is not the time to be worried about the deficit. With the private sector not producing jobs that leaves one sector left to fill the huge void - government sector. Think about this: private sector is pulling back - cutting costs & jobs then have the government sector do the same (it already is happening at state and municipal level). What do you think will happen? This is NOT rocket science.
We need the following:
1) Full payroll tax holiday - both employer and employee (new and existing);
2) A cash infusion to state's - $200 billion - to be distributed on a per capita basis; and
Note: I can't take credit for these proposals but I do strongly support them. These proposals are from Warren Mosler and others.