February Job Numbers: Caused By Heavy Snow, Or A Blizzard Of Bad Policy?

By Sofia Sanchez -University of New Mexico/Talk Radio News Service

While the White House says last month's 'snowpocalypse' helped keep the nation's unemployment rate at nearly 10%, a Republican from Texas attributed the numbers on Friday to a "blizzard of bad policy proposals."

“The administration attempted to spin these numbers as a result of storms in the northeast, but in truth it is a blizzard of bad policy proposals, higher taxes, health care mandates [and] dangerous levels of debt that is the real reason businesses are delaying key investments in hiring,” said Rep. Kevin Brady (R-Texas), during a Joint Economic Committee hearing on the newly-released statistics.

Brady's remarks disputed those of White House Council of Economic Advisers Chair Dr. Christina Romer, who said Friday that the snow did play a factor in keeping businesses from operating, and people from working.

“As many analysts have discussed in recent weeks, the large snowstorms in the Mid-Atlantic region in mid-February likely had a substantial negative impact in this number,” she said.

In a statement released Friday, House Majority Leader Steny Hoyer (D-Md.) agreed with Romer's assessment.

“It’s widely acknowledged that this number [36,000] would have been better except for the snowstorms that hit the Northeast last month."

Administration officials and Democrats in Congress contend that the weather forced individuals to miss work, thereby keeping them off monthly payrolls. Brady, however, said he doesn't buy that argument.

“I know the President and Congress are well-intentioned in all these efforts [to restore jobs], but I am puzzled by the President's economic approach. I don’t know what you call it, maybe ‘Blame-onomics?'"

Comments

[Dave]

The Effects of a Bottom-Up, Demand-Side, Consumer Tax Cut that nobody wants to talk about
The Positive Effects of a Bottom-Up, Demand-Side, Consumer Tax Cut

Republicans make a mistake when they say the Obama raised taxes.
Consider this:

Consumer spending makes up about 70% of the US Economy.

On April 1, 2009, low- and middle-income workers started seeing a bit more in their paychecks, thanks to the "Making Work Pay" tax credit in the federal recovery act. The tax credit is 6.2 percent of a taxpayer’s earned income with a maximum credit of $800 for a married couple filing a joint return and $400 for other taxpayers. The benefit will generally be spread out over the paychecks workers receive beginning in spring 2009 and will continue until the end of 2010.

Tens of billions of dollars have been pumped back into the economy through this bottom-up tax cut. All other positive economic indicators have followed.

After at least a 3 year decline, Consumer Spending began to rise in April of 2009.

After a 5 year decline, GDP began to rise in April of 2009.

After a 2 year decline, the Leading Economic Index began to rise in April of 2009,
and is currently higher than at any time in many years.
Historically, it's one of the few reliable forward indicators that exist.

After a dramatic 1 year increase, Job losses began shrinking in April of 2009.

From its low on March 9th, 2009, the current S&P recovery began to rise in April of 2009 and has outperformed the 1974 and the 2002 rebounds over the equivalent period.

“A tax cut of 1% of GDP raises GDP by between 2 and 3% over the next three years.
When households and businesses are liquidity-constrained by reduced lending, any money put in their pockets is more likely to be spent.
The economy is likely to be operating below its normal capacity for the next several years. In that environment, what we need is to stimulate demand in general.”
Christina D. Romer
Chief Economic Advisor to President Obama
February 27, 2009

“You didn't get a tax cut; there's no question you didn't get a tax cut. Nobody got a tax cut. The tax cuts they're talking about were onetime tax credits -- you go out and buy a new muffler was what the original idea was.”
Rush Limbaugh
Feb 17, 2010

So far, only 12% of the public think they got a tax cut. The republicans, who all voted against this tax cut, don't want to talk about it. They will continue to try and create a narrative that Obama has raised taxes.

But the liberals say tax cuts are a waste of money. I don't understand this. This is the perfect antithesis to the Reagan/Bush/republican trickle-down, supply-side, investor tax cuts which create bubbles, not jobs. Consumers create jobs through demand for goods and services. Liberals and Progressive should support tax cuts for working men and women while pushing for tax increases for the wealthy investors.

Ronald Reagan had 10 months of unemployment above 10%. So far, Obama has had only 3 months.

Somebody ought to start talking about this.

Dave Rusk
Estes Park, CO