MORE (ON) UNEMPLOYMENT
December 1, 2009
It's the first of December and we now begin that short wait for the employment figures from the Department of Labor. On Friday we should find out whether the unemployment rate rose to 10.3, 10.4, 10.5 or higher. Early tracking shows that it is possible it could have risen just a bit. Possibly to just 10.3.
Whereas 10.3 is more than two-times higher that it stood in December, 2007 (when it was 4.6), it is still way too high. If it jumps just one-tenth of a percent, the Democrats will hale it as a positive sign. The GOP will rattle on that it is a disgrace (because it is still climbing) but the real issue is will it ever get lower? In other words, how can new jobs be created when Congress and the White House are hell-bent to raising taxes on all businesses - not just the big corporations?
Unemployment is spreading like a virus across the country. The more Barack Obama and his team do to try to "fix" the problem, the more people lose jobs. And now we see that the American people are starting to wake up from their "hope and change" coma and are realizing that this is not the change they had hoped for.
Higher taxes on businesses means, first and foremost, layoffs. Then, higher taxes makes it harder for businesses to hirt in the future. As unemployment rises, so do the taxes levied on businesses in order for states to pay unemployment insurance. Couple this with the laundry list of taxes that Obama wants to impose on American families, and America is in deep trouble.
As noted in a report by the Associated Press, "As if small businesses needed another reason not to hire, consider their latest financial burden: The cost of rising unemployment itself."
Employers already are squeezed by tight credit, rising health care costs, wary consumers and a higher minimum wage. Now, the surging jobless rate is imposing another cost. It's forcing higher state taxes on companies to pay for unemployment insurance claims.
Some employers say the extra costs make them less likely to hire. That could be a worrisome sign for the economic recovery, because small businesses create about 60 percent of new jobs. Other employers say they'll cut or freeze pay.
The Wall Street Journal reports that in October, 29 states recorded increases in unemployment rates. That national unemployment rate jumped from 9.8% in September to 10.2% in October. In May 2007, the unemployment rate stood at 4.4%.
To see how unemployment has spread through the U.S. on a county level, just click on the graphic below. Watch the map, and don't be confused by the percentage statistic at the top as this only pertains to county states as a whole and not the totality of the populace:
Does Obama have a government job for these people? Will he raise taxes on everybody in order to pay for more "job creation?" Not even Obama can raise taxes that high, but it just goes to show that the entire approach by Obama and his socialist allies misses the mark.
Does this virus of unemployment reflect the loss of government jobs? No. These are private sector jobs being lost by workers in companies and businesses large and small. Jobs are created by businesses. It is so misguided and utterly stupid that when a recession hits and jobs are lost, that the first impulse by the left wing is to raise taxes and actually make it harder for hiring to occur.
Government can't magically "fix" the problem if it attacks the resources for job creation: American businesses and companies. Taxes should be cut, not raised. Regulations should be reduced, not increased. And those who do the hiring should be given a climate in which more hiring can occur. The best solution? Have government get out of the way! But that has never been a Democratic solution, at least, not since Woodrow Wilson!
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