Final budget deficit under Obama projected at $600B

By Dave Boyer in The Washington Times

July 15, 2016

The White House predicted Friday that the federal government’s budget deficit for current fiscal year will hit $600 billion, an increase of $162 billion over last year’s and a final sour note on President Obama’s watch.

While the figure was expected, the increase represents a reversal from previous years, in which budget deficits had steadily declined from the massive $1.4 trillion annual deficit early in Mr. Obama’s first term during the recession.

Read more at The Washington Times

Obama’s 229 Major Regulations Cost $108 Billion Each Year

By Milton Padilla and Tori Whiting at The Daily Signal

June 23, 2016

The Obama administration is responsible for thousands of new regulations—including a historic number of major regulations. As the costs of these regulations add up, they place more of a burden on economic freedom in America.

In 2015, 43 new major regulations went into effect, increasing regulatory costs by more than $22 billion, according to the latest “Red Tape Rising” study from The Heritage Foundation.

Read more at The Daily Signal

The Strange Omission From The White House’s Report On Unemployment And Labor Participation Rates

By Tim Worstall at Forbes

June 21, 2016

The Council of Economic Advisers has released a report through the White House looking at the problem of declining labour market participation rates among prime aged males. If this is all entirely voluntary then this isn’t a problem of course – glory to be alive in a society rich enough that some people don’t have to work. If it’s involuntary then it is a problem, a problem on two grounds. One is that we know that involuntary unemployment is one of the most misery inducing experiences that a human can go through, the other is that we’re missing out on those things that could be produced by that willing labour.

So this is definitely a problem that we should all be looking at, trying to puzzle our way through. But of course, when looking at absolutely any economic problem we have to be aware of the definitions of the statistics that we’re using. Not just what are the numbers but how are they composed? That composition being the key to what the numbers are actually telling us. And the thing is, this CEA report doesn’t pick up on a very important difference in the way that these numbers are compiled across countries.

Read more at Forbes

3 Economic Facts That Counter Obama’s Recovery Narrative

By Stephen Moore at The Daily Signal

June 20, 2016

President Barack Obama needs a reality check. Earlier this month in Indiana, he accused his critics of ignoring the “facts” and purporting “myths” about his economic record. But if Republicans are truly ignoring the facts, Obama should consider it a blessing.

A quick look at the facts will show that Obama’s economic performance has been weak—even by his own standards.

Read more at The Daily Signal

How Obama Has Made It Harder for Companies to Hire

By Patrick Tyrrell at The Daily Signal

June 10, 2016

Government data released on Wednesday shows the number of private-sector job openings was at an all-time high in April. Companies, however, hired the fewest number of people on a seasonally adjusted basis in nine months. Why the disparity?

The JOLTS (Job Openings and Labor Turnover Survey) data the government released show there were 5,289,000 private-sector job openings in April—114,000 more than in March. The government report also shows that private-sector hires declined by 169,000 compared to March.

Read more at The Daily Signal

This Recovery Has Been So Weak Because Government Action Has Been So Strong

By Jeffrey Dortman at Forbes

June 5, 2016

The 2007-2009 recession was very equivalent to the 1982 Reagan-Volker recession in terms of unemployment, yet the recovery from this recession has been much weaker. The Reagan-era recovery featured real GDP growth that averaged 4.8% per year, reached as high as 7.8% for a calendar year (1983), and never had a year of economic growth slower than 3%. Meanwhile, the recovery under President Obama has averaged only 2.1% annual real GDP growth and has never exceeded 3% growth for a calendar year (or any twelve month period). Some claim the slower growth is because the recession coincided with a financial crisis, others believe it is because government intervention was too timid. The reality is government intervention was so pervasive that it impeded the normal, free market path to recovery. All that government “help” has held the economy back.

For a little historical perspective on past stimulus packages, I annually assign each of my macroeconomic students to find the amount of stimulus spending in one of the recessions since World War II. What they find is that the stimulus spending for the 2007-2009 recession was greater than for all previous recession together, even after adjusting for inflation.

Read more at Forbes

Workers Don’t Need Government’s Help to Earn Higher Wages

By Veronique de Rugy at reason.com

June 2, 2016

One of the assets of the American economic model is a relatively flexible labor market, especially when compared with labor markets in many European countries. It explains some of the consistently lower U.S. unemployment rates and higher economic growth. Unfortunately, this flexibility is increasingly threatened by government policies that would increase the cost of employing workers. These policies include the Department of Labor’s recent overtime rules, the call for employer-paid family leave, and a minimum wage increase.

Some of these calls are driven by pure politics and self-interest. The typical union business model, for instance, is built on the notions that workers are treated unfairly by employers, that abuse is systemic to the labor market and that things get worse over time. The argument is that hamstringing employers into paying workers more for the same amount of work would be beneficial to workers, in spite of evidence to the contrary.

Read more at reason.com

 

Jobs Report Numbers at Odds With Obama’s Economic Spin

By James Sherk at The Daily Signal

June 3, 2016

On Wednesday President Barack Obama took an economic victory lap in Elkhart, Indiana. The Bureau of Labor Statistics’ employment report, which came out Friday, shows he was far too optimistic.

Both the household and payroll surveys showed employment growth slowing to a crawl in May, while hundreds of thousands of Americans stopped looking for work. Seven years after the recession officially ended the economy is not out of the woods.

Read more at The Daily Signal

U.S. economy creates an anemic 38,000 jobs in May, likely stalling Fed interest rate

By Jim Puzzanghera in Los Angeles Times

June 3, 2016

Job growth ground nearly to a halt in May, with the U.S. labor market having its worst performance in more than five years, the Labor Department said Friday.

The economy added just 38,000 net new jobs last month, a steep falloff from April’s disappointing 123,000 and well below analysts’ forecasts. The huge decline in job creation makes it unlikely Federal Reserve policymakers will increase a key interest rate when they meet to assess the state of the economy later this month.

Read more at Los Angeles Times