Sunday, October 07, 2012

Did You Know That Obama's Job Creation Is As Good As Reagan's

That's the case that liberals are actually trying to make - unsuccessfully.
Actually, I find this analysis remarkable —  remarkably incomplete:

As should be obvious to everyone now, the current 7.8% unemployment terribly distorts the state of the U.S. labor market. The only reason the rate has fallen so quickly the past year — from 9.0% in September 2011 — is because of a continuing collapse in the labor force participation (LFP) rate.

When President Obama took office, the LFP was 65.7% vs. 63.6% last month. If the LFP had just stayed steady all year, the unemployment rate would still be in the mid 8% range. Indeed, over the past year, 1.1 million discouraged Americans have disappeared from the U.S. labor force.

When the unemployment rate fell sharply under Reagan over the same period — from 9.2% in September 1983 to 7.3% in September 1984 — the LFP rose to 64.1% from 63.5%. Optimistic Americans were pouring into the job market — and finding jobs! The economy was booming.


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