Bleak jobs report draws fire

Politicians and economists had plenty to say after hearing that no new jobs were created in August.

By Kim Peterson Sep 2, 2011 12:44PM
Zero jobs created in August. The stunning news roiled the markets Friday, firing up politicians and sending economists scrambling to make sense of it all.

Republicans jumped at the chance to criticize President Barack Obama's economic policies. Presidential candidate Mitt Romney called the news unacceptable. "Americans need a conservative businessman to get this economy moving again, not career politicians," he said in a statement.

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Republican presidential candidate Jon Huntsman said that zero job growth is unfathomable in a country with 307 million people. "There is no clearer sign that the president has failed, and the theatrics around his far-too-late jobs speech demonstrate that he has no real plan to change course," he added.

Democrats mainly hammered Republicans for not passing bipartisan jobs bills stuck in Congress. "Republicans need to stop trying to appease the Tea Party and start working across the aisle with Democrats," said Senate Majority Leader Harry Reid. "Putting Americans back to work is the most important job Congress has right now."

Former Labor Secretary Robert Reich said the news could be a call to action for Obama. "If today's job report... doesn't push (Obama) toward a bold jobs plan he'll fight for, nothing will," Reich wrote on Twitter.

The news wasn't all bad. Verizon workers went on strike in August, temporarily removing 45,000 jobs from the picture. And the government lost 17,000 jobs. So to even out at zero, that means the private sector had a net gain of 62,000 jobs. Still not pretty, but at least there were some positive moments in a largely bleak report.

Economists and analysts rattled off a list of dire adjectives in reacting to the report, calling it disturbing, ominous, miserable, soft, dark, unsatisfactory and weak. This from a group that generally shies away from colorful language.

Many economists looked to the future and what the news could mean for a third round of quantitative easing. "Today's numbers will embolden those who argue for new initiatives to stimulate economic growth," wrote Chad Moutray, the chief economist at the National Association of Manufacturers.

Job creation is the lifeblood of an economy, not necessarily equity prices, wrote Dan Greenhaus of the financial services firm BTIG. Without it, we shouldn't be surprised that consumers aren't spending much, he added.

The problem isn't that companies are firing. It's more that they aren't hiring -- and uncertainty and slow growth in demand could be the reasons, wrote Nigel Gault of the economics firm IHS Global. The debt-ceiling debate probably did extra damage in August. "Recent trends are perilously close to stall speed for the economy," Gault added. "They don't yet say that we have tipped into recession, but that risk remains high (40% odds, in our view)."

309Comments
Sep 2, 2011 1:35PM
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The reality is the US economy got way, way out of control.  Wages, pensions, benefits and lifestyle greatly exceeded the rest of the world.  In order to compete in a global economy one of two things had to happen:  1.  Global wages, pensions, benefits, etc had to come up to ours or 2.  Ours had to drop to theirs.  Corporations couldn't compete in international markets paying American wages, etc. so jobs shifted out of this country. 

 

In order to keep the American standard of living going, we created endless supplies of easy money.  In the end, anyone, and I mean anyone, could borrow all they wanted.  And this was at every level from individuals through all levels of government.  Of course it couldn't last and sensible people knew it.  The American economy isn't based on making things, it's based on debt.  Our GDP is based on borrowed money. 

 

The result, of course, is a massive downsizing at every level.   Without the trillions of borrowed money being spent to buy an endless supply of gadgets and trinkets, jobs are gone and gone forever.  We can blame Obama, Bush, China, satan, immigrants or whoever your favorite scapegoat is.  Vents anger but doesn't solve our problems.  So get used to it folks!!  There will be more.  When you've spent decades digging the deepest hole imaginable, it's a long haul out. 

Sep 2, 2011 1:50PM
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If any party thinks it ahead due to these job numbers, they are to stupid to elect.  Obama failed, Congress failed, and the Justice Dept. failed.  Got it!!  Current Government Officials failed.

 

Vote for yourself in protest to these current criminals in 2012.

Sep 2, 2011 2:52PM
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This coming Monday should be re-named  "Unemployment Day"


Sep 2, 2011 3:10PM
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You want Jobs!!!!!!!!!!!!!!!! Change the trade laws, bring back manufacturing and the unemployment rate will go down.
Sep 2, 2011 1:58PM
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There are 2 schools of thought out there. The first is let the govt take care of us and we don't have to do anything. The other is give people the opportunity to create their own success in life. Guess which on is Democrat and which one is republican. Which are you????
Sep 2, 2011 1:54PM
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Ok people listen up. Until people know that the govt isnt going to take their hard earned money and just give it away to the "less fortunate". Nothing good is going to happen! 
Sep 2, 2011 3:10PM
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Republicans blame Democrats.  Democrats blame Republicans.  When will these children quit their bickering and get to work and solve this? 

Remember. If everyone is waiting for the Republicans to get into office to solve the economy, you have a long wait.  The inauguration won't take place until January 2013.  What will our country be like by then if these guys don't start working together now!!!

Scary, isn't it?

Sep 2, 2011 2:51PM
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What he hell is the government gonna do to get these jobs. Sit down and crap them? Nobody's really talking about why we don't have any jobs here. Hey WASHINGTON the big cos. shipped them all off to china, india, mexico and vietnam. Got it? There are the jobs, now have the balls to go get em!!
Sep 2, 2011 2:52PM
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2012 can't come soon enough.  We'll continue to see disastrous economic reports until we get Obama out of office.  He is completely incompetent and the job of President.
Sep 2, 2011 3:00PM
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Our sham government is not doing anything ,but making vague blanket statements.
They helped offshore our good paying jobs,imported foreign workers,funding illegals with our money,and turned the country into a service based economy which isn't working.
They are not  doing anything to create jobs,because they cant.They are a hindrance,with all the regulations, stimulus programs,etc,wasting our tax money.Government is a taker.....stealing our money and acting like we need them to "save the country".
We need a plan to protect ourselves from our own government.
Sep 2, 2011 3:52PM
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"Gloomy jobs report fires up politicians" to do what? Find new ways to blame each other?

 

WE need to be fired up..enough to vote out every last congressman and senator, and replace them with people who actually give a damn about the American people!

Sep 2, 2011 2:54PM
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I'm so sick and tired of hearing the complete knit twits blaming the republicans and the tea part for ABSOLUTELY everything. They don't even know what the Tea party is much less what it stands for.

And, they call themselves "informed." What a bunch of crap!!

Let's face it folks your "hope and change" clown has been a complete disaster. You would have to be a world class moron not to see that.

Its time to stop the bleeding and move on. Obama must go......
Sep 2, 2011 2:42PM
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Intell 99....I'm not a tea partier, however, all they really want is fiscal conservatisim and founding father values. They are against the nanny state we now all live in. When people realize that nothing in this life is "free", we can then get back to the "land of opportunity" we used to be!

And for Tim Davis....The corporate tax rate in china and india is around 17%. Here in the US it is around 34 ish %.  If you had a choice, where would you hire????

Sep 2, 2011 2:51PM
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Back in the 70's I used to see a bumper sticker on the VW vans - It said "****, grass or gas - nobody rides free".

Well, the ride's over and now it's time to pay!

No one is going to get out of this mess without some damage, and it's going to hurt.

The only real question at this point is how much it's going to hurt and for how long?

Sep 2, 2011 3:20PM
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What made America the richest country in the world by 1890 was free individuals coming up with new ideas and technologies that created wealth.

 

We never needed government involvement in the economy, and we don't need it today.  We need only a few basic things from govt, such as prosecuting financial criminals.

 

We need to return to our roots of individual economic liberty.  We should not punish anyone for succeeding, we should understand that successful people create jobs for everyone else through their spending or through businesses they create themselves.

 

Freedom works.  Heavy-handed government involvement like we saw in the mortgage market pre 2008, thank you Fannie and Freddie may you rot in hell, and like we have seen lately is simply a bandaid that makes short term pain seem less, but destroys in the long run. 

We need to be reliant on ourselves, 95% of us.  Not the government.

Sep 2, 2011 3:26PM
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Jobs shifted out of this country because US Corporations could not compete in international markets paying American wages. Millions of US jobs, good paying jobs are gone and will not be coming back.

 

Too high a percentage of our income goes to food, fuel, living and traveling expenses, local, state, federal taxes, liability insurance, and health care.

 

A half century of poor decisions, policies, excessive borrowing, and money manipulations got us where we are today. America needs to figure out how  to get those jobs back to America, reverse the trade deficit, and reduce living expenses.

 

Some suggestions:

-Pay back all the money borrowed from foreign countries. Make China the first priority.

-Reverse the trade deficit 

-Create tax benefits for companies moving the jobs back to America

-Charge federal surcharges for raw materials going out to foreign countries and an excise tax for profits made here. Foreign countries are using up our resources, inflating the costs and affecting supply here. Citizens are even stealing metals from businesses and people's homes and making a profit.

-get the manufacturing and service jobs back to America

-Do not use food for fuel. Corn, wheat, etc.

-Do not allow market manipulation for fuel and food commodities. It is artificially raising food and fuel prices

-Do away with unions for government jobs

-Control government "perks" to employees...pensions, health care costs, etc.

-stop subsidizing foreign governments with cash if we do not have it to spend

-Move the overseas military bases back to US and employ people here

-Control the borders and properly enforce immigration laws

-Make English the national language again

-Reduce living expenses, taxes, and liability costs.

 

 

 

Sep 2, 2011 4:05PM
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The same people who say "don't blame the president" -- are the same people who said "burn bush".  Aren't you the same people who blamed president BUSH for $4 gas in his term, because he had property rights in "BIG OIL COMPANIES".  HOW MUCH IS GAS NOW ?  Young people don't want to work.  Other people think they deserve $20/hr to flip burgers.  We are a NANNY STATE NOW.  We have to provide hospitalization to 14-20 million illegal immigrants from mexico alone.  We have a huge trade deficit with CHINA.  33% of this country is drawing some form of welfare.  If you help to spread welfare in your family over a course of 4-5 generations of people, there is a cycle.  We need to consider taxing ULTRA-RICH CHURCH organizations.  I love GOD, so don't freak out.  If you have lived on u/e for over 2 years, your the problem.  If you have been in college for more than 5 years with no degree and student loans, your the problem.  If you bought a huge house you couldn't afford and blame "THE BANK", your the problem.  If you bought a new car when you couldn't afford it, you're the problem.  If you cheat the government with your taxes, you're the problem.  If you make society pay the price of you not parenting your children, you're the problem.  If you racked up tons of credit debt with no intentions to pay anyone and file Bankruptcy, you're the problem.  I could go on and on. . . America will return, but it will come with a price and it'll be very painful for alot of people.  IT WILL HAPPEN.  The spirit of america will never die.  Ask yourself if your part of the problem, or part of the solution ?  Get over yourself for blaiming other people for your situation, as you have prob done this your whole entire life.  Grow-up.  Get it together.  Adjust your lifestyle.  Turn off the TV.  Go to bed early.  Love your family and friends.  Oh, this is my first BLOG ever in life.  how did it go. . .

Sep 2, 2011 2:52PM
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I don't think there will be any good news for our economy until we can rid ourselves of Obama.  He and his cabinet and army of czars have no experience and little ability.  The stimulus failed, cash for clunkers failed and Obamacare is going push us even further into massive debt.  All bad ideas, all failures, and Obama does not even have the spine to accept blame and try something different.  It is just the same socialist ideas and failed socialist economy tactics.  The failed in Europe, they failed here, they have failed in every country that uses them.  Pointing the finger at someone or thing does not remove the failure.  Tighten your belts until 2012 because it is just going to be more of the same from Obama who was fresh out of hope, change, and ideas before he was even elected. 
Sep 2, 2011 4:07PM
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Oh please why is everybody blaming Obama when its clear the major problem with jobs that Hilary and Bill threw a party to persuade the legislature to pass the NAFTA act for "free" trade, when it should have been fair trade.  So all the manufactures went to third world nations for the cheap labor and now there is little to no manufacturing in the U.S.  And because they are manufacturing in a foreign country they don't pay the taxes on profit they make doing this.  No manufacturing, no jobs because not everyone in the United State wasn't meant to go to college.  High paying manufacturing jobs have been replaced with low paying service jobs.  If the service jobs pay well then they are outsourced to India or China.  What were our legislatures thinking in all their infinite wisdom.  The legislature sold us down the river for so very little.  They can turn this around and they seem to ignore this type of action, it is clear that businessmen and bankers run this country and not politicians.

Sep 2, 2011 3:51PM
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Where in the hell half these idiots been for the last ten years???

This did not just happen last night !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

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