PERSPECTIVE: Credit for continued US job growth goes to Trump, not Obama

The Bureau of Labor Statistics (BLS) released its April jobs report last week revealing the economy had produced over 164,000 jobs last month, while March employment was revised up by 35,000.

Leading the job surge was the professional and business services, which added 54,000 jobs; manufacturing, which grew by 24,000 jobs; healthcare, which saw an uptick in jobs of 24,000; and mining, which surged by 8,000 jobs in April.

According to its monthly account on the health of the job market, BLS also indicated the overall unemployment rate broke four percent and now rests at 3.9 percent, and unemployment rates for females, African-Americans, Hispanics and Asians all dropped.

Some economists are now optimistic unemployment will drop to 3.5 percent by the end of the year.

Breaking new ground, the unemployment rate among Black citizens hit an all-time low at 6.6 percent, and for Hispanics the rate dropped to 4.6 percent, tying a record set in 2006.

In addition to these good numbers, the number of long-term unemployed dropped by 340,000.

Although the numbers reflect a healthy, growing job market, not all indicators were sterling.  Wage growth was slow, the labor force participation rate remained consistent, only dropping from 62.9 to 62.8 percent from the previous month, and the 164,000 jobs fell short of expectations of 194,000.

“I thought the jobs report was very good. The big thing to me was cracking four [percent].  That hasn’t been done in a long time; we’re at full employment. We’re doing great,” Trump told reporters.

Perspective

Mr. Trump’s policies have unchained the economy.

Under President Trump’s anti-regulatory and tax policies, the whole U.S. economy is benefiting employers, employees, blue-collar workers, and the stock market.  By dismantling the regulatory state and passing dramatic tax cuts for corporations and tax payers, the government will see an increase in tax revenue and a decrease in government expenditures, which will reduce the deficit.

Similarly, in 2017 alone, Trump’s first year, unemployment dropped over 12 percent, from 4.7 to 4.1 percent; long-term unemployment dropped a whopping 19 percent, and wages, long stagnant under Obama, are finally beginning to rise.  GDP also surpassed three percent in the last two quarters of 2017.

Unfortunately, some misguided former Obama administration officials don’t see it this way, and are attempting to claim responsibility for the surge in job growth since Mr. Trump took office in 2017.

Let’s specify up front presidents often are held to account for the state of the economy when they should not.  If a president had absolute or even some control over the economy, there would never be a recession.

One confused former Obama administration aide, Valerie Jarrett, did as much in a recent interview when attempting to lavish praise on Mr. Obama on CNN.

However, since partisan bickering often spills into areas it should avoid, let’s assume both Mr. Trump and Mr. Obama are responsible for job and economic growth as Jarrett did on CNN.

Asked by Camerota for a reaction to the April jobs report, Jarrett dodged the question and shifted to praising her former boss.

An answer delivered to salvage what remains of the Obama legacy, Jarrett neither looked at the bottom line in the BLS report nor did she care to.

The main difference between Trump’s economy and Obama’s is elementary.  Unlike the current administration, Obama often oversaw somewhat consistent job growth in retail and health care, but manufacturing, mining, durable goods and professional and jobs services lagged badly.

Often high-wage jobs, positions in these key sectors were virtually nonexistent due in large part to Obama’s suffocating regulatory policies, but have surged under the deregulation of the Trump White House.

While it is true job losses were massive and regular in Mr. Obama’s first year, to suggest job growth from 2017 onward is a result of Mr. Obama’s policies finally taking effect is absurd.

“Since I signed Obamacare into law, our businesses have added more than 15 million new jobs,” Obama stated at a farewell press conference in December 2016.

Total fiction, Mr. Obama’s hollow claim of 15 million jobs created during his two terms contradicts facts uncovered by two Ivy League economists, both of whom have deep ties to former President Bill Clinton during his two terms in office.

According to a study conducted by Lawrence Katz of Harvard University and Alan Krueger at Princeton University, the pair drew the startling conclusion an astounding 94 percent of jobs created under Obama were either part-time or contract positions.

Expressed another way, of the 15 million jobs Obama claimed were created during his terms in the White House, only 10 million were actually created, 9.4 million of which were part-time gigs or contract jobs.  By percentage, Krueger and Katz say workers in these fleeting jobs rose from 10.7 percent of the population to 15.8 percent.

“Workers seeking full-time, steady work have lost,” said Krueger.

The two most devastating interpretations the economists offered were one, a million fewer workers overall were working in 2016 than before the start of the Great Recession; and two, conventional work, often referred to as “9-to-5 jobs,” virtually disappeared across every demographic.

Moreover, Krueger and Katz also concluded Obama’s policies injured women in particular, revealing jobs in education and medicine which women often seek, fell sharply under the former president.

The recovery U.S. workers are experiencing today was only delayed by Obama policies, which is precisely why so many former Obama aides or officials have scurried to a bunker when the BLS issues monthly jobs reports.

A man with a peculiar fixation with transgender bathrooms and an obsession with climate change, both of which earned him praise among his far-left base but did little for millions seeking jobs, had Mr. Obama concentrated on the economy when elected, he would not have to witness his loyal assistant make a complete fool of herself in front of a national audience.

If nothing else, Ms. Jarrett is a misguided but a brave woman to utter such foolishness on national television.  We expect her to defend Obama, but if Jarrett is going to assume credit for job now, she must remember to assail Obama in her memoirs for his record in 2009.

The Obama legacy is built on a mound of sand.  Ms. Jarrett knows this, and she should know better.

 

[Reuters] [Washington Examiner] [Investing.com] [Photo courtesy Bloomberg via Wall Street Journal]

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