The infamous White House jobs chart

September 8, 2011

Using a handy graphic found in Mitt Romney’s economic plan, I’ve updated the Bernstein-Romer jobs chart from 2009 while also incorporating (in green) Wall Street bank forecasts (Goldman Sachs, JPMorgan) of where the unemployment rate might be headed.

Two things jump out at me: First, of course, is the incredible underperformance of the $800 billion stimulus. Second, note where the Obama White House thought the unemployment rate would be in 2012  even if no stimulus: around 6 percent or so. Reminds me of how dismissive Obama’s economic advisers were in 2009 and 2010 of the thesis that downturns after financial crises can be nasty beasts. Maybe if they had taken the situation more seriously, they would have focused more on growth and jobs (and deep, permanent tax cuts) instead of healthcare and cap-and-trade.

 

7 comments

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Focus on cap and trade? The bill was pulled, there was no focus on it. Focus on health care? Vital to save the economy (15 – 20% inflation in health care costs was/is a key driver of economic difficulty — ask any businessman).

It wasn’t Obama’s dithering that prolonged the difficulties and crises.

Posted by EDarrell | Report as abusive

The key was the SEC not doing its job.
And the culprits aren’t STILL taking the criminals
to task for their extreme gambling habit.

AND if the cost of health care is so gosh darn high,
why, oh why doesn’t the medical industry lower their
prices to what people can afford? Mitt, ol’ boy,
has had enough money off of all the fancy fancy slipping
he’s done at HCA. (Mitt flies in a private corporate jet with his pharma friends into the sunset…..)

And he wants to be president after the life he’s led?

America doesn’t need the “other Obama” in the White House.

Posted by limapie | Report as abusive

Reduced government spending and reduced taxation in a downturn tend to exacerbate the paradox of thrift. That is, if you cut taxes during a recession, people will save the money, not spend it. That’s why government spending is counter-cyclical; it allows society a means to spread the risk of spending in a recession.

Posted by ncooty | Report as abusive

people need to learn some basics 1) the government do not create weath it uses it. 2) government only income is taxes and that is out of our pocket. 3) government is known for wasting money in any that they do. time to use the most uncommon thing and that is common sence.

Posted by nje | Report as abusive

Focus on cap and trade? The bill was pulled, there was no focus on it. Focus on health care? Vital to save the economy (15 – 20% inflation in health care costs

Posted by 210bobby | Report as abusive