Category Archives: Financial crisis

Sequestration impact on Federal Education Programs, Automatic across the board reductions in discretionary programs, Obama stimulus and failed energy spending helped create huge deficit

Sequestration impact on Federal Education Programs, Automatic across the board reductions in discretionary programs, Obama stimulus and failed energy spending helped create huge deficit

“Why was Obama in constant contact with Tony Rezko in 2004 when Rezko was conspiring with William Cellini to use TRS, Teacher Retirement Fund, assets for political gain and personal enrichment?”…Citizen Wells

“What do you think a stimulus is? It’s spending – that’s the whole point! Seriously.”…Barack Obama

“…and Socialist governments traditionally do make a financial mess. They [socialists] always run out of other people’s money. It’s quite a characteristic of them.”…Margaret Thatcher

Much is being said about the impact of sequestration on federal education spending.

From the NEA.

“Impact of Sequestration on Federal Education Programs – State-by-State

Across-the-board cuts known as “sequestration” are scheduled to go into effect on March 1, 2013 unless Congress acts.  These cuts – nearly $3 billion for education alone —  would result in:

  • Services cut or eliminated for millions of students.
  • Funding for children living in poverty, special education, and Head Start slashed by billions.
  • Ballooning class sizes.
  • Elimination of after-school programs.
  • Decimation of programs for our most vulnerable—homeless students, English language learners, and high-poverty, struggling schools.
  • Slashing of financial aid for college students.
  • Loss of tens of thousands of education jobs—at early childhood, elementary, secondary, and postsecondary levels.

http://www.nea.org/home/52610.htm

Sequestration defined.

From Idea Money Watch.

Q. What is sequestration? (Pronounced se″kwes-tra´shun)
A. Sequestration is a fiscal policy procedure adopted by Congress to deal with the federal budget deficit. It first appeared in the Gramm-Rudman-Hollings Deficit Reduction Act of 1985.

Simply put, sequestration is the cancellation of budgetary resources — an “automatic” form of spending cutback. (Learn more here.)
 Q. Why is sequestration important now?

A. The Budget Control Act of 2011 (BCA) established a 12 member Joint Select Committee on Deficit Reduction  (or “super committee”)  charged with reducing the deficit by an additional $1.2 – $1.5 trillion over ten years. The BCA also included a sequestration hammer should the super committee fail, a provision intended to “force” the super committee to act.

Despite the threat of sequestration, the super committee failed. Announcing its inability to reach an agreement on November 21, 2011, the members of the bipartisan committee stated  that “after months of hard work and intense deliberations, we have come to the conclusion today that it will not be possible to make any bipartisan agreement available to the public before the committee’s deadline.”

So, as established in the BCA, sequestration was triggered when the super committee failed to reach an agreement. Sequestration generates automatic cuts for each of nine years, FY 13-21, totaling $1.2 trillion. Sequestration was originally scheduled to take effect on Jan. 2, 2013. However, it was delayed for two months – until March 1, 2013, by the deal struck on New Year’s Eve, called the American Taxpayer Relief Act of 2012.

Now, without Congressional action to prevent sequestration, the first round of cuts will take place on March 1, 2013.

The 2013 cuts apply to “discretionary” spending and are divided between reductions to  defense ($500 billion) and non-defense ($700 billion). 

Q. What must occur in order to avoid sequestration?  


A.
 Sequestration can only be avoided if Congress passes legislation that undoes the legal requirement in the BCA and that President Obama will sign before March 1, 2013.

While advocacy efforts to prevent sequestration are beginning to spring up, the strongest efforts focus on preventing the deep cuts to defense spending.


Q. Can the Executive Branch reconfigure sequestration cuts?


A. 
No. The cuts are automatic, across-the-board reductions to all discretionary programs unless exempted by the BCA. (A list of exempt programs is available here
.) The Executive Branch will have no authority or ability to redistribute the cuts.

http://www.ideamoneywatch.com/main/index.php?option=com_content&view=article&id=60&Itemid=72

$ 3 billion in education cuts because our spending is out of control.

How did that happen?

Here is part of the reason.

A $840 billion Obama stimulus program.

From The Foundry October 18, 2012.

“The 2009 stimulus set aside $80 billion to subsidize politically preferred energy projects. Since that time, 1,900 investigations have been opened to look into stimulus waste, fraud, and abuse (although not all are linked to the green-energy funds), and nearly 600 convictions have been made. Of that $80 billion in clean energy loans, grants, and tax credits, at least 10 percent has gone to companies that have since either gone bankrupt or are circling the drain.”

“So far, 34 companies that were offered federal support from taxpayers are faltering — either having gone bankrupt or laying off workers or heading for bankruptcy. This list includes only those companies that received federal money from the Obama Administration’s Department of Energy and other agencies. The amount of money indicated does not reflect how much was actually received or spent but how much was offered. The amount also does not include other state, local, and federal tax credits and subsidies, which push the amount of money these companies have received from taxpayers even higher.

The complete list of faltering or bankrupt green-energy companies:

  1. Evergreen Solar ($25 million)*
  2. SpectraWatt ($500,000)*
  3. Solyndra ($535 million)*
  4. Beacon Power ($43 million)*
  5. Nevada Geothermal ($98.5 million)
  6. SunPower ($1.2 billion)
  7. First Solar ($1.46 billion)
  8. Babcock and Brown ($178 million)
  9. EnerDel’s subsidiary Ener1 ($118.5 million)*
  10. Amonix ($5.9 million)
  11. Fisker Automotive ($529 million)
  12. Abound Solar ($400 million)*
  13. A123 Systems ($279 million)*
  14. Willard and Kelsey Solar Group ($700,981)*
  15. Johnson Controls ($299 million)
  16. Brightsource ($1.6 billion)
  17. ECOtality ($126.2 million)
  18. Raser Technologies ($33 million)*
  19. Energy Conversion Devices ($13.3 million)*
  20. Mountain Plaza, Inc. ($2 million)*
  21. Olsen’s Crop Service and Olsen’s Mills Acquisition Company ($10 million)*
  22. Range Fuels ($80 million)*
  23. Thompson River Power ($6.5 million)*
  24. Stirling Energy Systems ($7 million)*
  25. Azure Dynamics ($5.4 million)*
  26. GreenVolts ($500,000)
  27. Vestas ($50 million)
  28. LG Chem’s subsidiary Compact Power ($151 million)
  29. Nordic Windpower ($16 million)*
  30. Navistar ($39 million)
  31. Satcon ($3 million)*
  32. Konarka Technologies Inc. ($20 million)*
  33. Mascoma Corp. ($100 million)

*Denotes companies that have filed for bankruptcy.”

http://blog.heritage.org/2012/10/18/president-obamas-taxpayer-backed-green-energy-failures/

WE warned you.

Obama is doing to the US education system what he and his cronies did to Illinois.

From Citizen Wells March 29, 2012.

“Obama, Blagojevich and their cronies used the citizens of Illinois, Teachers Retirement System, hospitals and taxpayer dollars for their own benefit.”

“2003: “Of the five funds, the one in the sorriest shape is the Illinois Teacher Retirement System, which provides the pensions for suburban and downstate teachers. Its ratio of assets to liabilities stood at a mere 52 percent last year, so poor that it was considered among the five worst-funded plans in the country.”

“In 2002, the year after Obama made the pitch, the Illinois Teacher Retirement System reported an 18% increase in assets managed by minority-owned firms. Ariel’s share grew to $442 million by 2005.

In 2006, after the federal investigation became public, the teacher pension board severed its relationship with Ariel, concluding that Ariel’s investment returns were insufficient.”

“In addition to lining their own pockets, the money gained through the scheme was funneled to the campaigns of Blagojevich and Obama. Prosecutors have identified two $10,000 payments that were made to Obama’s US Senate campaign through straw donors Joseph Aramanda and Elie Maloof, which originated from a kickback paid by investment firm, Glencoe Capital, to secure approval for a $50 million deal.
Aramanda and Maloof also each gave Obama $1,000 for his failed run for Congress in 2000. Once Obama became a US Senator, Aramanda’s son was granted a coveted intern position in Obama’s Senate office in Washington during the summer of 2005, based on a request which the Obama’s camp has admitted came from Rezko.”

“Mr. Obama also recently pointed to his work on the Illinois pension issue as a model for what he would do as president to promote minority-owned companies.”

Read more:

https://citizenwells.wordpress.com/tag/obama-doing-to-us-what-he-did-to-illinois/

Small Business hiring plans plunge, September another month of low expectations and pessimism, Rising health care and energy costs, Federal taxes

Small Business hiring plans plunge, September another month of low expectations and pessimism, Rising health care and energy costs, Federal taxes

“With a 63.7% labor force participation, “conditions in the labor market are considerably worse than indicated” in July’s report”…economist Joshua Shapiro, WSJ August 3, 2012

“Since the Democrats took control of both houses of congress in January 2007, the number of people who could only find part time work has gone up 215 percent”…Citizen Wells

“Student health care costs have doubled, tripled and in some cases increased over 1000% in 2012. Premiums for employer provided family coverage rose $2,370 since 2009, Obamacare penalties to hospitals will average $125,000 per facility in 2013 and gasoline has risen over $2 per gallon since Obama took office.”…Citizen Wells

From the National Federation of Independent Business October Survey.

“Hiring Plans Plunge: Small Business Optimism Drops 0.1

Expectations for the Future Remain Low

September was another month of low expectations and pessimism for the small-business community, with the NFIB Small Business Optimism Index losing 0.1 points and falling to 92.8. The recession-level reading was pulled down by a deterioration in labor market indicators, with job creation plans plunging 6 points, job openings falling one point and more firms reporting decreases in employment than those reporting increases in employment. Since the commencement of NFIB’s monthly surveys in 1986, the Index has been below 93.0 a total of 56 times; 32 of which have occurred since the recovery began in June 2009.”

DOWNLOAD THE REPORT   READ THE PRESS RELEASE

Small business optimism index

“Highlights

  • Capital Expenditures: Small-business owners are still in “maintenance mode,” with the frequency of reported capital outlays over the past six months falling 4 points to 51 percent. Of those making expenditures, 34 percent reported spending on new equipment (down 7 points from the previous month), 16 percent acquired vehicles (down 5 points), and 14 percent improved or expanded facilities (unchanged). Four (4) percent of owners acquired new buildings or land for expansion (down 2 points) and 12 percent spent money for new fixtures and furniture (unchanged). Overall, there was a substantial reduction in capital spending activity. The percent of owners planning capital outlays in the next three to six months fell 3 points to 21 percent. While the number of owners who characterized the current period as a good time to expand facilities went up 3 points (seasonally adjusted) to seven percent, this is only half of the 14 percent of owners who said the same in September 2007. The net percent of owners expecting better business conditions in six months rose 4 points to two percent after posting a 6 point improvement last month, albeit still registering a pessimistic collective view. Not seasonally adjusted, 15 percent expect an improvement in business conditions (up 1 point), and 20 percent expect deterioration (down 4 points). A net one percent of all owners expect improved real sales volumes.
  • Sales: Weak sales continue to be an albatross for the small-business community. The net percent of all owners (seasonally adjusted) reporting higher nominal sales over the past three months was unchanged at a negative 13 percent, cementing the 17 point decline since April and affirming weak GDP growth for the second quarter. Twenty-one (21) percent still cite weak sales as their top business problem—historically high, but down from the record 34 percent reached in March 2010. Seasonally unadjusted, 23 percent of all owners reported higher sales (last three months compared to prior three months, down 1 point) and 30 percent reported lower sales (up 1 point). Consumer spending remains weak and high energy costs continue to “tax” consumer disposable income. The net percent of owners expecting higher real sales was unchanged at one percent of all owners (seasonally adjusted), down 11 points from the year high of net 12 percent in February. The weak reading is unlikely to trigger orders for new inventory or business expansion. Not seasonally adjusted, 24 percent expect improvement over the next three months (down 4 points) and 31 percent expect declines (up 3 points).
  • Job Creation: Job creation plans showed that small-business owners created fewer jobs in September than in the two previous months. Not seasonally adjusted, 10 percent plan to increase employment at their firm (down 3 points), and 11 percent plan reductions (up 2 points). Seasonally adjusted, the net percent of owners planning to create new jobs fell 6 points to four percent, a historically weak reading, especially in a recovery. Essentially, hiring is keeping up with population growth, but not exceeding it. Seasonally adjusted, 10 percent of the owners reported adding an average of 2.2 workers per firm over the past few months, and 13 percent reduced employment an average of 3 workers. The remaining 77 percent of owners made no net change in employment. Fifty-one (51) percent of the owners hired or tried to hire in the last three months and 41 percent (80 percent of those trying to hire or hiring) reported few or no qualified applicants for open positions. The percent of owners reporting hard to fill job openings fell 1 point to 17 percent of all owners. The only region of the country that saw any positive job growth was the West North Central states, largely because of energy production. “

“Consumer spending has barely advanced this year, and consequently so has job creation. Employment is still 4 million lower than it was in the first quarter of 2008 (first quarter). The population grows about 1% annually. A few more jobs are needed to take care of that, and that seems to be about all we are getting. The percent of owners reporting hard to fill job openings fell 1 point to 17% of all owners, no help for a lower unemployment rate. Seasonally adjusted, the net percent of owners planning to create new jobs fell 6 points to 4%, a historically weak reading, especially in a recovery. Owners remained pessimistic about the future in September and consequently hiring plans remain weak. Reported job creation for the past few months was negative. More workers let go than hired, signaling a weak BLS jobs report for September, around 100,000 new jobs overall.”

“Uncertainty has cast a cloud over the future for small business owners, making it difficult to make commitments to new spending and hiring. In a recently released NFIB Problems and Priorities survey, owners rated the severity of 75 business issues. Uncertainty about the economy ranked second while uncertainty about government policy ranked fourth. For perspective, securing long term funding was 56th and finding qualified workers 32nd. With a 50/50 election, according to the polls, and very different sets of policies that might be put in place, owners are unwilling to put their own capital on the line until the future path of the economy and economic policy becomes clearer.

MOST IMPORTANT PROBLEM: 2012
1.  Rising Cost of Health Care Insurance
2.  Uncertainty over Economic Conditions
3.  Energy Costs
4.  Uncertainty over Government Actions
5.  Unreasonable Government Regulations
6.  Federal Taxes on Business Income
7.  Tax Complexity
8.  Frequent Changes in Federal Tax Laws and Rules
9.  Property Taxes
10. State Taxes on Business Income”

Read more:

http://www.nfib.com/research-foundation/surveys/small-business-economic-trends

 

Employment rate drop caused by 600000 new part time workers, Unemployment rate .3 percent drop, Real jobs added 114000, Involuntary part time workers not good news

Employment rate drop caused by 600000 new part time workers, Unemployment rate .3 percent drop, Real jobs added 114000, Involuntary part time workers not good news

“With a 63.7% labor force participation, “conditions in the labor market are considerably worse than indicated” in July’s report”…economist Joshua Shapiro, WSJ August 3, 2012

“People leaving the labor force were a big reason that North Carolina’s unemployment rate dropped to 9.4 percent in April, a month when only 1,400 more people got jobs.”…WRAL May 18, 2012

“The Party told you to reject the evidence of your eyes and ears. It was their final, most essential command. His heart sank as he thought of the enormous power arrayed against him, the ease with which any Party intellectual would overthrow him in debate, the subtle arguments which he would not be able to understand, much less answer. And yet he was in the right! They were wrong and he was right. The obvious, the silly, and the true had got to be defended. Truisms are true, hold on to that! The solid world exists, its laws do not change. Stones are hard, water is wet, objects unsupported fall towards the earth’s centre. With the feeling that he was speaking to O’Brien, and also that he was setting forth an important axiom, he wrote:

Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984”

Here is the answer to the .3 percent unemployment rate drop from 8.1 percent in August to 7.8 percent in September.

From the US Labor Department October 5, 2012.

“Total employment rose by 873,000 in September, following 3 months of little
change. The employment-population ratio increased by 0.4 percentage point to
58.7 percent, after edging down in the prior 2 months. The overall trend in
the employment-population ratio for this year has been flat. The civilian labor
force rose by 418,000 to 155.1 million in September, while the labor force
participation rate was little changed at 63.6 percent. (See table A-1.)

The number of persons employed part time for economic reasons (sometimes
referred to as involuntary part-time workers) rose from 8.0 million in August
to 8.6 million in September. These individuals were working part time because
their hours had been cut back or because they were unable to find a full-time
job.”

http://www.bls.gov/news.release/empsit.nr0.htm

Part time workers included in employed category.

“Household survey. The sample is selected to reflect the entire
civilian noninstitutional population. Based on responses to a series
of questions on work and job search activities, each person 16 years
and over in a sample household is classified as employed, unemployed,
or not in the labor force.

People are classified as employed if they did any work at all as paid
employees during the reference week; worked in their own business,
profession, or on their own farm; or worked without pay at least 15
hours in a family business or farm. People are also counted as employed
if they were temporarily absent from their jobs because of illness, bad
weather, vacation, labor-management disputes, or personal reasons.”
“Establishment survey. The sample establishments are drawn from private
nonfarm businesses such as factories, offices, and stores, as well as
from federal, state, and local government entities. Employees on nonfarm
payrolls are those who received pay for any part of the reference pay
period, including persons on paid leave.”

http://www.bls.gov/news.release/empsit.tn.htm

600,000 new part time jobs in September.

But this is why:

“These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.”

Where I come from, this is not good news.

Obviously there are more components of this voodoo mathematics.

Here are some interesting facts:

 
                                                                                    Sept 2011                            Sept 2012
 
Labor force participation rate                            64.1 %                                 63.6 %
 
Persons who currently want a job                6,240,000                             6,727,000
 
Not in labor force                                               86,067,000                          88,710,000      
 
Employment-population ratio                            58.4                                     58.7   
This big jump in “part time” workers begs more research.

Durable goods orders plunge, Economic growth sluggish, 1.3 percent annual growth, Longest 8 plus percent unemployment rate on record, Record labor force participation rate

Durable goods orders plunge, Economic growth sluggish, 1.3 percent annual growth, Longest 8 plus percent unemployment rate on record, Record labor force participation rate

“Guilford (Large NC County) appears on it’s way to a third consecutive year with annual jobless rates in double digits. Economists say that likely hasn’t happened since the Great Depression.”…Greensboro News Record December 2, 2011

“With a 63.7% labor force participation, “conditions in the labor market are considerably worse than indicated” in July’s report”…economist Joshua Shapiro, WSJ August 3, 2012

“And if all others accepted the lie which the Party imposed

–if all records told the same tale–then the lie passed into
history and became truth. “Who controls the past,” ran the
Party slogan, “controls the future: who controls the present
controls the past.”…George Orwell, “1984″

A recent survey indicated that 15 % of Democrats believe that the economy is bad. Perhaps they selected a sample of mostly young and uneducated folks.

I just asked a classicly liberal older gentleman about his impression of the economy and he gave me an honest answer. He described it with emphasis as extremely bad.

Economic growth figures are frightening, the stated unemployment rate is the worst on record for months above 8 percent and the Labor Force Participation Rate has hit record lows. That is, the only reason that the unemployment rate is 8.1 percent instead of 11.1 percent or higher is because so many people have left the labor force.

From Bloomberg September 27, 2012.

“Plunge in Goods Orders May Restrain U.S. Expansion: Economy”

“Demand for U.S. durable goods other than transportation equipment unexpectedly dropped in August for a third consecutive month, signaling that slowdowns in business investment and exports will restrain the economic expansion.

Orders for goods meant to last at least three years, excluding volatile demand for airplanes and automobiles, fell 1.6 percent last month after decreasing 1.3 percent in July, the Commerce Department reported today in Washington. Total bookingsplunged 13.2 percent, the most since January 2009, as demand for civilian aircraft collapsed.

“The corporate sector is getting very nervous from a combination of worries about Europe, worries about the fiscal cliff and a general lack of confidence in the recovery,” saidEthan Harris, co-head of global economics research at Bank of America Corp. in New York, whose estimate for the drop in ex- transportation orders was the closest of economists surveyed.”

“The median forecast of 53 economists surveyed by Bloomberg projected a 0.2 percent gain in ex-transportation goods orders. The Commerce Department revised July data down from a previously reported 0.6 percent decrease.

The decline in total orders was more than twice as large as the 5 percent drop projected by the median estimate in the Bloomberg survey.

The world’s largest economy expanded at a 1.3 percent annual pace in the second quarter after growing at a 2 percent rate from January through March, other figures from the Commerce Department showed today. The revision, the third estimate for the quarter, compared with a previously reported 1.7 percent gain.”

http://www.bloomberg.com/news/2012-09-27/orders-for-u-s-capital-goods-signal-business-spending-slowdown.html

I spoke to a young man a few days ago. He is employed in IT. He is supporting Obama and the Democrats and is obviously brainwashed. I do not exaggerate. Just as the folks in Nazi Germany and “1984” were constantly bombarded with the big lies, the young and ignorant are in this country.

He believed that the economy was better and that Obama had created jobs. I reminded him that the Democrats took control of both houses in January 2007 and that the unemployment rate where we stood is 10.2 percent. He did not know that. I explained that we were still in the worst economy since the great depression.

We still have work to do.

Bernanke unemployment high, Labor Day weekend August 31, 2012, Fed can do more, Economic recovery far from satisfactory, Jobless claims 374,000

Bernanke unemployment high, Labor Day weekend August 31, 2012, Fed can do more, Economic recovery far from satisfactory, Jobless claims 374,000

“We tried our plan—and it worked. That’s the difference. That’s the choice in this election. That’s why I’m running for a second term.”…Barack Obama
“after 29 months of allegedly stellar job growth under Obama, the jobless rate is still 8.3%. By this point in the Reagan and Bush jobs recoveries, the unemployment rate was 7.2% and 4.9%, respectively. If we were one of those fact-checking organizations, we’d give Stephanie Cutter the “Lying Liar from Liersburg” award.”…News Busters August 26, 2012

“And if all others accepted the lie which the Party imposed
–if all records told the same tale–then the lie passed into
history and became truth. “Who controls the past,” ran the
Party slogan, “controls the future: who controls the present
controls the past.”…George Orwell, “1984″

From Boston.com August 31, 2012.
“Bernanke: With unemployment high, Fed can do more”

“Chairman Ben Bernanke made clear Friday that the Federal Reserve will do more to boost the economy because of high U.S. unemployment and an economic recovery that remains ‘‘far from satisfactory.’’

He also argued that the Fed’s moves so far to keep interest rates at record lows and encourage borrowing and spending have helped bolster the economy.

Bernanke stopped short of committing the Fed to any specific move, such as another round of bond purchases to lower long-term rates. But in a speech at an annual Fed conference in Jackson Hole, Wyo., Bernanke said that even with rates at super-lows, the Fed can do more.

After Bernanke’s comments were released at 10 a.m. Eastern time, stocks initially gave up most of their earlier gains. But as investors digested the speech, stocks bounced back. By late morning, the Dow Jones industrial average was up more than 100 points. Broader stock indexes also surged.

Bernanke noted that further action carries risks but says the Fed can manage them. The Fed ‘‘should not rule out’’ new policies to improve the job market, he said.

The most dramatic step the Fed could take would be another round of bond buying. This is known as quantitative easing, or QE. In two rounds of QE, the Fed bought more than $2 trillion of Treasury bonds and mortgage-backed securities. Many investors have been hoping for a third round — QE3— to be unveiled as soon as the Fed’s next policy meeting in September.

In light of Bernanke’s comments Friday, some analysts said that might be a stronger possibility now.”

“In his speech, Bernanke cited studies showing that the Fed’s first two rounds of bond purchases created at least 2 million jobs.”

“Bernanke’s comments Friday made clear that the economy has a long way back to full health.

‘‘Unless the economy begins to grow more quickly than it has recently, the unemployment rate is likely to remain far above levels consistent with maximum employment for some time,’’ he said.”

Read more:

http://www.boston.com/business/markets/2012/08/31/bernanke-with-unemployment-high-fed-can-more/n9QmdIvIK9wPGKFNGsfSYK/story.html

From the US Labor Department August 30, 2012.

“In the week ending August 25, the advance figure for seasonally adjusted initial claims was 374,000, unchanged from the previous week’s revised figure of 374,000. The 4-week moving average was 370,250, an increase of 1,500 from the previous week’s revised average of 368,750.”

http://www.dol.gov/opa/media/press/eta/ui/current.htm

Obama lies from Stepanie Cutter, Obama campaign spokesperson lies about Obama job growth compared to Bush and Reagan, Bureau of Labor Statistics

Obama lies from Stepanie Cutter, Obama campaign spokesperson lies about Obama job growth compared to Bush and Reagan, Bureau of Labor Statistics

“the Times of the nineteenth of December had published the official forecasts of the output of various classes of consumption goods in the fourth quarter of 1983, which was also the sixth quarter of the Ninth Three-Year Plan. Today’s issue contained a statement of the actual output, from which it appeared that the forecasts were in every instance grossly wrong. Winston’s job was to rectify the original figures by making them agree with the later ones.”…George Orwell, “1984″

“And if all others accepted the lie which the Party imposed
–if all records told the same tale–then the lie passed into
history and became truth. “Who controls the past,” ran the
Party slogan, “controls the future: who controls the present
controls the past.”…George Orwell, “1984″

“Propaganda must not serve the truth, especially not insofar
as it might bring out something favorable for the opponent.”
… Adolf Hitler

From News Busters August 26, 2012.

“‘Fact Checkers’ AWOL After Obama Spokesperson Lies About Jobs Created Under Reagan and Obama”

“Obama campaign spokesperson Stepanie Cutter, appearing on MSNBC earlier this week, claimed that “over the past, you know, 27 months we’ve created 4.5 million private-sector jobs. That’s more jobs than in the Bush recovery (or) in the Reagan recovery.”

A Thursday Investor’s Business Daily editorial plaintively asked: “Where are those allegedly unbiased fact-checkers when you need them?” As will be seen shortly, the answer is “AWOL.”

First, to debunk Cutter’s lie (source: Bureau of Labor Statistics):”


“Thanks to the graph, yours truly doesn’t need to bore readers with lots of numbers. Outside of very small blips, there is virtually no point on the above graph where the trajectory of job growth under Obama is as high as that seen under Reagan, even though the Reagan-era workforce was about one-third smaller. If done on percentage of workforce, the slope of the Reagan-era ascent would be even steeper.

For those who crave some numbers — In its first 37 post-recession months, the economy under Reagan added more than 9.8 million nonfarm payroll (NFP) jobs, over 7 million more than the 2.7 million added under Obama. To replicate the Reagan-era performance, the economy under Obama would have needed to add over 14 million jobs since the recession’s end; it has really added less than 20% of that. The Reagan-era private sector margin is over 5.7 million jobs.

And of course, there’s an obvious point to be made about the unemployment rate, as IBD noted:

What’s more, after 29 months of allegedly stellar job growth under Obama, the jobless rate is still 8.3%. By this point in the Reagan and Bush jobs recoveries, the unemployment rate was 7.2% and 4.9%, respectively.
If we were one of those fact-checking organizations, we’d give Stephanie Cutter the “Lying Liar from Liersburg” award.
A Google News search done this morning on “Stephanie Cutter Reagan” (past week, not in quotes, sorted by date with duplicates) returned six items (the final result listed pre-dates Cutter’s lie). The results are from American Thinker, Real Clear Politics (2), National Review, Washington Examiner, and United Liberty.

The same search at the Associated Press’s main site returned nothing.

AP’s “Presidential Campaign Fact Check” appears to be limited to what the presidential and vice-presidential candidates say. The wire service is currently carrying its interview with President Obama, naturally headlined “AP INTERVIEW: OBAMA CALLS ROMNEY’S IDEAS ‘EXTREME’,” on its “Top Story” page. Zheesh.

As to “fact-checkers” like PolitiFact and others, nothing demonstrates that they have turned themselves into just another tool of leftist bias than the “fact” that they haven’t called out Stephanie Cutter’s lie for four days and counting while trying and failing to nitpick the Romney campaign over its true statement about women’s job losses during the recession several months ago. PolitiFact falsely claimed it was “Mostly False.”

Oh, by the way, as James Pethoukouis noted in his second crucifixion of Cutter’s comment (his original post relating to Reagan is here), “both the Reagan and Bush recoveries were stronger than the current recovery under President Obama.””

http://newsbusters.org/blogs/tom-blumer/2012/08/26/fact-checkers-awol-after-obama-spokesperson-lies-about-jobs-created-unde

Obviously, congress is mostly at fault. The Democrats controlled both houses beginning in 2007 to create a “perfect storm” of failing liberal policies with the help of Obama.

Consider the following:

Reagan inherited an economic mess from Carter. Many of you remember the long gas lines and 18 percent mortgage rates from the Carter years.

In January 1983, 2 years after Reagan took office, the unemployment rate was 10.4 percent. In January 1989, when reagan left office, the rate was 5.4 percent.

When George Bush took office in January 2001, the unemployment rate was 4.2 percent. When the Democrats took control of congress in January 2007, the rate was 4.6 percent.

So, the impact of a Democrat congress with the addition of Barack Obama in January 2009 led to an unemployment rate of 9.1 percent in January 2011.

The Republicans took control of the house in January 2011. The stated unemployment rate is 8.3 percent but would be much higher if so many folks had not dropped out of the labor force.

Check for yourself:

http://data.bls.gov/timeseries/LNS14000000

From the Ulsterman,  February 24, 2012.

For a bit of contrast check out thiscomparative chart detailing the Reagan recovery vs the Obama recovery. One president charged ahead with plans to greatly reduce taxes, lessen regulations, and pushes to increase domestic energy production in the United States. The other president – Barack Obama, called for more taxes, more regulation, and has fought increasing domestic energy production at every opportunity – such as his shutting down of the much-needed Keystone pipeline:”


“The truth is clear – the Obama presidency has been a near-complete disaster for working Americans.  This might explain a term growing in popularity of late – “ABO”  –  Anybody But Obama in 2012…”

US unemployment claims rise 4000, NC unemployment rate 9.8 percent, Unemployment rate increased in 26 NC counties, Charlotte Mecklenburg rate 10 percent

US unemployment claims rise 4000, NC unemployment rate 9.8 percent, Unemployment rate increased in 26 NC counties, Charlotte Mecklenburg rate 10 percent

“Guilford (Large NC County) appears on it’s way to a third consecutive year with annual jobless rates in double digits. Economists say that likely hasn’t happened since the Great Depression.”…Greensboro News Record December 2, 2011

“North Carolina currently has the fourth-highest unemployment rate in the country and has stayed well above the national average through 2012.”…WRAL, August 17, 2012

“We tried our plan—and it worked. That’s the difference. That’s the choice in this election. That’s why I’m running for a second term.”…Barack Obama

From the US Labor Department August  23, 2012.

“In the week ending August 18, the advance figure for seasonally adjusted initial claims was 372,000, an increase of 4,000 from the previous week’s revised figure of 368,000. The 4-week moving average was 368,000, an increase of 3,750 from the previous week’s revised average of 364,250.

The advance seasonally adjusted insured unemployment rate was 2.6 percent for the week ending August 11, unchanged from the prior week’s unrevised rate.

The advance number for seasonally adjusted insured unemployment during the week ending August 11, was 3,317,000, an increase of 4,000 from the preceding week’s revised level of 3,313,000. The 4-week moving average was 3,311,500, an increase of 6,500 from the preceding week’s revised average of 3,305,000.”

http://www.dol.gov/opa/media/press/eta/ui/current.htm

From the NC Department of Commerce August 24, 2012.

“North Carolina’s statewide unemployment rate (not seasonally adjusted) was 9.8 percent in July. This was a 0.1 of a percentage-point decrease from June’s revised rate of 9.9 percent, and a 1.1 percentage-point decrease over the year.

Over the month, the unemployment rate decreased in 47 counties, increased in 26 and remained the same in 27. Thirty-four counties had unemployment rates below the state’s 9.8 percent rate.

Scotland County recorded July’s highest unemployment rate at 17.6 percent, remaining the same as the previous month. Graham County had the second-highest rate at 15.2 percent. Currituck County had the lowest unemployment rate at 4.7 percent, followed by Chatham, 7.0 percent; and Orange, 7.1 percent.”

http://www.ncesc1.com/PMI/Rates/PressReleases/County/NR_July2012CountyRate_M.pdf

Mecklenburg County, the home of the 2012 Democrat convention in Charlotte, has an unemployment rate of 10 percent.