White House predicts slow employment growth
[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2010/images/02/11/art.romer.file-gi.jpg caption="Christina Romer said Wednesday she expects an average of 95,000 jobs a month to be created this year, and that the nation's GDP will expand at a 2.5% rate."]New York (CNNMoney.com) - Companies will begin slowly adding to their payrolls in 2010, according to an annual White House review of the economy.
The White House Council of Economic Advisers, which on Thursday released a 462-page analysis of the president's economic initiatives, said that the unemployment rate will be at 10% during 2010. It is now at 9.7%.
"With millions of Americans still unemployed, much work remains to restore the American economy to health," the report said. "It will take a prolonged and robust GDP expansion to eliminate the large jobs deficit that has opened up over the course of the recession."
On a call Wednesday with reporters, Council Chairwoman Christina Romer said she expects an average of 95,000 jobs a month to be created this year, and that the nation's GDP will expand at a 2.5% rate.
The report, which is delivered to Congress, looks at the actions President Obama took to deal with the recession over the past year. It also discusses the economic challenges that lie ahead for the nation, but offers little insight that's new.
Overall, the analysis enthusiastically supports the administration's handling of the economic crisis and its proposals to strengthen the country's fiscal standing in the future.
Romer called the report "a page-turner" and noted that it's available for download to Kindle and other e-readers.
The report places blame on the Bush administration for running up debts and cutting taxes.
Romer blogged about the study on WhiteHouse.gov. "Largely because of two tax cuts, two wars, and a major new Medicare drug benefit that were not paid for, the budget surpluses of the 1990s had been replaced by substantial actual and projected future deficits long before the recession began at the end of 2007," she wrote.
She also took another whack at Obama's favorite new target: Wall Street.
"Much of the economic growth that the United States experienced in the past decade was fueled by consumers and the government running up large debts, aided by a financial system better at making short-term profits than managing long-term risks," she wrote.
Republicans were quick to react the report, calling it fluff and noting that the report says that unemployment won't fall back to its 2008 level for another seven years.
"The Obama Administration's report is full of blame for the policies of years past, praise for its own failed policies of the past year, and promises about their ideological agenda to grow government, said Rep. Eric Cantor, R-Va., the House GOP whip. "Instead of praising themselves and blaming others, a greater focus on small businesses and smart solutions to reduce uncertainty and create jobs would be welcomed and is long overdue."
The report has kind words for the $862 billion American Recovery and Reinvestment Act, the centerpiece of Obama's economic policy in his first year.
Calling the program the "great unsung hero of the past year," Romer reiterated that the program has funded up to 2 million jobs and helped turn the economy around.
Going forward, the report highlights several areas of financial concerns. These include health care, the deficit, living standards, business investment and trade, climate change and financial regulation. As consumers spend less, the government must foster an atmosphere which allows companies to ramp up their investments and exports.
The report lays out the administration's proposals to address these issues.
Obama has made job creation his central focus in his second year in office. He has recently traveled the country promoting tax credits for small businesses, the source of many new hires. And on Tuesday, he brought together congressional leaders to push for a bipartisan agreement on legislation to boost hiring.
As long as Obama and the liberals keep attacking capitalism and spending us into bankruptcy, there won't be any job growth - except government payrolls.
Slow job growth is better than no job growth.
I find a report laughable that blames the deficits all on Bush policies when he has had no part in Obama's 862 billion stimulius, billions for auto bail outs and a 600 billion accumulative increase in the last two Obama budgets. That is way over a trillion in new Obama spending all on borrowed money that Bush had nothing to do with. The only Americans stupid enough to believe Obama's bull are his blind liberal/progressive followers.
It is clear Obama knows independents have deserted him and will vote for Republicans in the November elections. So he has mounted a campaign to increase bashing of Bush and Republicans to try and win back indpendents.
But that won't make the stimulus work, won't make the terrible health care reform bills look any better, won't create any jobs, won't make cap and trade look like a good idea, won't cut spending and won't reduce the deficits. Republicans will continue to oppose the Obama policies on all those issues and until Obama does something on those issues that independents actually like, they will remain opposed to his agenda.
Don't worry. Employment will pick up starting January 2011 when the new majorities take control of both houses of congress and businesses understand it's OK to make a profit again.
What is this administration smoking? Can California legalize it? I am sure they will jiggle the numbers to look good all year, but what in pray tell have they done to stimulate PRIVATE SECTOR jobs? The growth will only come from government jobs at an average of $265K per job. Pretty good wages for a ditch digger.
Government policies have favored the rich for decades. The working class and poor have always known this. It's only now that the poverty is trickling up to the disappearing middle class that Joe 12-pack is getting angry. Even the mighty propaganda machine of the ruling elite can not hide the facts much longer, only buy a little time by redirecting this neo-populist anger at big bad government and creeping "socialism" instead of where it sould be directed: global capitalism. How's that trickly downy thing workin' out for ya? Sure, tax cuts and deregulation create jobs. In China. Have a nice day!
Without taking sides on the debate on how to fix our economy, I'd like to add my two cents on whether or not Obama truly represents a change from "business as usual" in politics.
Why is Christina Romer being the spokesperson instead of Geithner? It seems to me that Mr. Geithner's absence from the public eye is a political move decided by the White House after seeing his unpopularity. This indicates to me that Obama operates just like other politicians: Make decisions based on gaining looking good.
We are very lucky Obama won the election and got right to working hard despite all the problems and political coruption that were working against him and the US. He has done so much in his first year – saved us from the Second Great Depression, supported (and probably saved) the US Auto industry, brought about the stimulus bill that saved thousands of jobs, to name a few.
All while the opposition party of "NO" tried to obstruct everything. Obama used only facts to defeat the lies and deceptions of the tea-baggers, fox media, and hate radio. So keep up the hard work President Obama – the anti-American mob is still out there working to destroy our society and all that America stands for.
And what about the 95,000 plus jobs a month that gets laid off.
Odumbo must be making union jobs for his buddies, I wouldn't put it passed him. He is way sneaky.
2010/2012 REAL Change is coming
Somehow I can't take Ms. Romer seriously and think she would be better kept offscreen. She may be brilliant but she comes across as the third grade teacher you'd like to forget. Cheery and silly.
I know the Job loss rate will fall. Obama is doing all the correct things. I applaud him! What a brilliant man. We are so lucky to have him lead us. Its a breath of fresh air considering what we had before. A man with an IQ of 2, maybe 3. Now, if only the dems would stop watering these bills down, so real progress can get underway we will be in business!
Obozo and this administration are completely incompetent. Hey CNN, while you continue to bash Sarah Palin every 2 seconds, Iran is making us look pathetic, unemployment is terrible, and we are in complete debt to China. This administration is a disgrace. CNN has become a joke. You guys should be ashamed to call yourself a balanced news organization. This is why your ratings are in freefall. PATHETIC
So let's review:
1. all the bad stuff is Bush's fault...
2. all the good things are due to the Messiah Obama
3. the $850B stimulus that no one read is the reason why the economy will improve
In the past, such logic would land you in a sanatorium. Today it will earn you a leadership position in the Democrat party.
An $850B "stimulus" program is going to lead to "slow employment growth?" Are you kidding me? Why hasn't anyone been fired yet? Why hasn't the mainstream murder scream bloody murder yet?
If the the goal is to create 95,000 jobs per month then the unemployment rate will rise because to keep it at 10% requires creation of around 150 to 200,000 jobs per month. In order to reduce the unemployment rate to 5% the economy will have to create 250,000 jobs for each of the next 48 months, which isn't real practical. Not my numbers but numbers from the leading economists
Overall, the analysis enthusiastically supports the administration's handling of the economic crisis and its proposals to strengthen the country's fiscal standing in the future.
_____________________________________________________
Coming from the White House Council on Economic Advisors, we really can't expect a thrashing, can we? ( Yeah, great results from that Stimulus spending...millions of jobs I tell ya, millions of jobs! )
"and that the nation's GDP will expand at a 2.5% rate"...an the average
American waistline will expand at a 4.8% rate.Which one of these will be considered a problem and which will be considered acceptable?
Wow, really taking a risk there, huh? Duh.
Screw the Republicans and their asinine complaints... Same goes for that 25% of the nation in the lower end of the intelligence bell curve who think Sarah Palin would make a good "President" (she couldn't even make a successful governor you fools!).
Citizens of America let the President know it's time to take the reins and stimulate the economy and create jobs for people who are suffering.
Revolt against the Rich and Corporate interests and their puppet dogs in the Republican Party!!!
After all of the fraudulent information/reports coming from the Obama Admin regarding unemployment and the economy........the majority no longer believes any of the claims coming from the White House.
All of their information/reports are based on cooked books and fuzzy math.
If anyone believes that under the Obama Admin 95,000 jobs are going to be created each month............I have a bridge that I want to sell you in the Mojave Desert.
Is this woman goofy or what? She is always smiling while telling how many people are out of work, cannot pay their bills.
I think they put something extra special in her kool-aid
its demand.... less taxes... more spending ,,,more jobs,,,,
I was just inspecting the FED jobs roster for a potential job and noticed that FDIC has some $200,000./yr plus jobs for some banker types. If I am understanding this, the Fed closes the small banks down for mismanagement and insolvency putting these guys out of a job. Then they turn around and hire them to help close some of their buddies banks down? This is the same kind of philosophy we are seeing with Bernanke and Geithner, I mean does anyone else see what is going on or should I just go back to bed and sleep it off?
R-E-G-U-L-A-T-E Corporate Profits with Fair Taxation. No More Corporate Welfare at the collective Bank of We The People! P-E-N-A-L-I-Z-E those who refuse us decent work and send our work out to predatorily injure other people's lives as these steal everything they can squander!
Consider the continuous drumbeat of propaganda which leads the most vulnerable educationally to believe these constant lies that Unions, Paper Voting, Acorn, the Muslims (read not like us Christians), the "Illegal Aliens" (read: those invaders with brown skin from anywhere!) are Bad, Bad, BAd, taking your jobs, stealing your services, criminal elements, and the like.
This Competitive mantra that only the Wealthy may rule the masses rewards only those who can grow to become the biggest predators while unfairly causing the very poverty in the abuse and use of Labor!
Consider how these pervasive, dominant, current, competitive, sacrosanct, and duplicitous belief systems hurt everyone except those who wield the Power of Money (an exclusive construct). Much of this power long-held and kept in the hands of mostly those who can, do, and will continue to pay the most for elections which undermine our chances for the supposed hallowed "Pursuit of Happiness"! Hmm? Wake up, my brothers and sisters.
Rise Up, for we are being HAD by most of these Posers! The trends do not look positive, despite the Sown Confusion Which Causes us to fight among ourselves, instead of Show These predatory Capitalists the Door. We are the Answer that Can Lead US ON The Way back to our Egalitarian Roots – memories of former thriving societies that foster Justice and Equality! Peace
There's an understatement, for sure.
"Slow Growth" doesn't represent Christina Romer! Government jobs growth doesn't help. Obama has tripled the debt left by Bush!! What happened to change. What a fraud.