Here is the analysis of the August report by James Pethokoukis of the American Enterprise Institute.
Last night Obama promised in his second term to create tremendous numbers of job through more government “investments” but only a hopelessly naive or partisan person would believe that. What our statist leader doesn’t understand is that jobs are created not by Washington but by decisions by individuals across the country to start or expand business. They only decide to do that when they perceive opportunities to earn a profit (that is, consumers placing more value on the goods or services they produce than the cost of making them) and then take the risk to acquire the needed resources, produce, and see if they were right. With the increasingly heavy burden of regulations and the great uncertainty over future conditions (Obamacare foremost among them), it’s little wonder that there isn’t much entrepreneurial activity in the country.
But here’s how Team Obama will probably spin the numbers. The unemployment rate went down by .2, and if that trend continues for another year, the unemployment rate will be down to only 5.7%! Cheer, everyone!
