Friday, August 24, 2012

Why "jobs created" is Obama's favorite metric

Short answer: because it's the only one available that can have a positive spin put on it.

I've detailed extensively how this metric--jobs created--is being misused by the Obama Administration, how it's being presented incorrectly by insisting a) that it is sufficient to show economic growth and b) that the President's policies are somehow directly responsible for every job "created." And it's used in place of the more traditional unemployment rate, since the latter--even with BLS manipulations--just can't be made to look good, given that its never dipped below 8% under Obama and is once again on the raise.

There's another metric sometimes cited by the left-leaning pundits as well, pundits who pretend to understand the economy: the gini coefficient or wealth inequality. That's increasing too, though this is supposedly a bad thing.  Through a bit of sleight-of-hand, however, the responsibility for increases here are not borne by Obama and his policies. Somehow, the gini coefficient has increased despite the excellent actions by the President. But this doesn't translate well as a talking point for Obama, as a reason for him to be reelected, so it's being ignored right now.

What of the other metrics out there? GDP doesn't work. Even though overall GDP is increasing, the growth rate is very low and going in the wrong direction. That won't fly, at all. What else? There's not much left. In fact, some of the remaining stuff is downright scary. A new analysis by Sentier Research is one big pile of bad news for the Obama economy. Bloomberg captures some of the highlights (lowlights?):
American incomes declined more in the three-year expansion that started in June 2009 than during the longest recession since the Great Depression, according an analysis of U.S. Census Bureau data by Sentier Research LLC.

“Almost every group is worse off than it was three years ago, and some groups had very large declines in income,” Green, who previously directed work on the Census Bureau’s income and poverty statistics program, said in a phone interview today. “We’re in an unprecedented period of economic stagnation.”
Got that? Every group is worse off now than it was when Obama assumed control of the economy. Yet, he's out there talking about how the private sector is "doing fine" and his spokesmodels are trumpeting the millions of jobs he has supposedly created. Looking at all the metrics together, one can really see just how stupid the latter really is. Incomes are down, unemployment remains high, GDP growth is negligible, and income inequality is growing. Yet somehow, all of that doesn't matter because a bunch of jobs have been "created," no doubt with a wave of Obama's magic wand.

Hearing the Administration try to sell this is becoming painful. It's actually fucking embarrassing, pardon my French. And it's made even worse by the fact that supposedly intelligent people are buying the argument.

Cheers, all.

No comments:

Post a Comment