Unemployment soared in October to 10.2%, the highest rate in over 26 years. The 0.4% jump was much larger than the slight 0.1% increase expected by analysts. Non-farm payrolls shed 190k jobs, also larger than the 175k expected.
The Democratic stimulus plan is a complete and utter disaster. Here’s the update of the graph comparing reality to the Administration’s projections (light blue is the administration’s no-stimulus projection):
This no-stimulus scenario is looking pretty good now. Also, recall what President Obama himself said last January about the economy and his stimulus plan:
Economists from across the political spectrum agree that if we don’t act swiftly and boldly, we could see a much deeper economic downturn that could lead to double digit unemployment and the American Dream slipping further and further out of reach.
That’s why we need an American Recovery and Reinvestment Plan that not only creates jobs in the short-term but spurs economic growth and competitiveness in the long-term. And this plan must be designed in a new way—we can’t just fall into the old Washington habit of throwing money at the problem.
(Emphasis mine.) (Via IBD.)
Of course, later the president embraced throwing money at the problem:
So then you get the argument, well, this is not a stimulus bill, this is a spending bill. What do you think a stimulus is? (Laughter and applause.) That’s the whole point. No, seriously. (Laughter.) That’s the point. (Applause.)
To get a picture of how badly the president’s policy has failed, let’s take a trip down memory lane. In 2004, President Bush was running for re-election and was being savaged for the “jobless recovery”. Tom Daschle made it the centerpiece of his response to Bush’s 2004 State of the Union address.
But what were the actual figures? Between January 2001 and November 2004, seasonally adjusted non-farm payrolls cut 274 thousand jobs. This is according to the establishment survey, which the media preferred because it made Bush look worse. According the more-complete household survey — which includes self-employment — the economy actually added 2.5 million jobs.
Between January 2009 and today, we have already lost 3.5 million non-farm jobs (3.8 million in the household survey). If we start the clock six months into Obama’s term (a courtesy generally not afforded to Bush), which happens to be when the recession ended, we have lost 867 thousand non-farm jobs. On the household survey, we have lost 1.9 million.