« | »

US Will Never See Full Employment Under Obama

From CNS News:

CBO: America Will Never See Full Employment Under Obama

By Terence P. Jeffrey | March 26, 2013

(CNSNews.com) – The Congressional Budget Office is now projecting that the U.S. economy will never achieve full employment during the eight years Barack Obama serves as president.

That would make Obama the only American president during the post-World War II era who never presided over a year in which the U.S. economy offered full employment to the American people.

Yet another way in which Obama’s Presidency is unprecedented and historical.

The CBO defines “full employment” to be when the national unemployment rate is at or below what it calls the “natural unemployment rate.”

The natural unemployment rate, according to CBO, is the “rate of unemployment arising from all sources except fluctuations in aggregate demand…

In a blog entry published last week, CBO Director Doug Elmendorf said “we think it will take four more years to get back close to full employment.”

In fact, baseline data CBO released last month indicate that the “natural unemployment rate” will be 5.5 percent through the rest of Obama’s presidency and that actual unemployment will never drop below 6.0 percent in any quarter between now and the end of 2016.

According to CBO, unemployment will remain above 7.0 percent through the third quarter of 2015. It will then drop to 6.8 percent in the fourth quarter of 2015, and gradually decline to 6.0 percent by the fourth quarter of 2016.

In the first quarter of 2017, when the next president is being sworn into office, the unemployment rate will drop to 5.8 percent, CBO projects. That would still be above the natural unemployment rate of 5.5 percent.

Finally, in the first quarter of 2018, according to CBO’s projections, unemployment will drop to 5.5 percent. At that point, a year after Obama has left office, the U.S. economy will finally achieve full employment for the first time since 2007.

And, lest we forget, the CBO’s predictions have been hilariously ‘rosy’ for the Obama administration. (Which is in stark contrast to their predictions under the evil Bush administration.)

Thus, according to CBO’s projections, America will never see full employment under Obama even though the CBO has increased what it considers to be the natural unemployment rate during Obama’s tenure. From the first quarter of 1999 through the first quarter of 2008, CBO calculated that the natural unemployment rate was 5.0 percent. Thus, for the economy to achieve full employment during that nine-year span, actual unemployment had to fall to 5.0 percent or lower.

In other words, under the evil George Bush the CBO’s standard for full employment was 10% higher. It has been lowered for the Saintly Obama.

Despite this higher standard, the economy did achieve full employment on a number of occasions from 1999 through 2008. This included, on average, the entire years of 2000, 2001, 2006 and 2007.

So despite a higher standard for full employment, Bush achieve it in four separate years. Years that included 9/11 and two wars.

During the tenures of each American president from Harry Truman through George W. Bush–according to the average annual unemployment rates published by the Bureau of Labor Statistics and the natural unemployment rate calculated by CBO–there was at least one year in which the U.S. economy achieved full employment…

But Mr. Obama is also our first black President (apart from Bill Clinton), and everyone knows the jobs market is racist.

This article was posted by Steve on Wednesday, March 27th, 2013. Comments are currently closed.

One Response to “US Will Never See Full Employment Under Obama”

  1. Liberals Demise says:

    Part-time nation is what we have become under Dinglebarry and absolutely
    nothing to show for it but higher taxes.

« Front Page | To Top
« | »