by Dr. Roy Cordato
Senior Economist, Emeritas
Touting the unemployment rate for September of 7.8%, President Obama said at a campaign stop in VA that “this economy has come too far to turn back now.” Well, exactly how far has it come? What was the unemployment rate when he took office in January 2009? Was it 10 percent or 9 percent or 12 percent? Nope, it was 7.8%. And over the next 3 years, in spite of, or I would argue because of, his massive stimulus plan which, according to Keynesian theory was supposed to be a short term shot in the arm to the economy, it never approached 7.8% again, until now. So the economy has come far only in the sense that one has come far after a long roller coaster ride where you have highs and lows all well above your starting point with possible vomiting along the way.