Much of the blame for Obama’s “job
killing” has been placed on the Affordable Care Act (ACA), commonly referred to
as Obamacare, which all of the current Republican candidates running for president
promise to repeal in toto if they are elected in November. What they will
replace it with…well, don’t worry about it. They’ve got a plan, but you’ll have
to put them in the White House if you want to see it.
Bobby Jindal, ex-Governor of Louisiana
and amateur exorcist, once said of the ACA, “Why not delay all of the mandates
in Obamacare [which] has become such a job killer in our economy.” Ted Cruz,
Canada’s least favorite son, said, “It’s been a disaster. It is the biggest
job-killer in this country; millions of Americans have lost their jobs.” Marco
Rubio said that the ACA was a “certified job-killer”. So, is Obama in general (and
the ACA in particular) really a job killer? Is Obama a Marxist who has crushed businesses
large and small in an attempt to destroy capitalism?
Let us begin by looking at what President
Obama was faced with when he took office in January, 2009. Mr. Obama’s predecessor,
George W. Bush, inherited a 4.2% unemployment rate (courtesy of Bill Clinton).
When he left office the nation was in a recession and unemployment was at 7.8%.
I guess “trickledown economics” didn’t quite trickle down the way it was expected
to. When Obama sat behind his desk in the Oval Office for the first time he
found himself sitting at the helm of a nation that was losing 700,000 jobs a
month, and whose stock market was sinking faster than the Titanic.
An economy in freefall can’t be
turned around on a dime, and over the first nine months of Obama’s presidency the
unemployment rate continued to rise, peaking at 10.1% in October, 2009, two
months before Obama’s greatest “job killing” bill, the ACA, would be passed by the Senate. Since then the
unemployment rate has fallen to 4.9%, the lowest it has been since February,
2008. Here is a graph showing the official unemployment rate over the last ten
years (recession
period shaded gray):
“But how can this be?”, some of you
may be asking. Didn’t Donald Trump say that the real unemployment rate may be
as high as 42%? Trump’s claim seems to have been gleaned from a column by Ronald
Reagan’s budget director David Stockman. Politifact explains Strockman’s
reasoning thusly:
Stockman calculated that there are currently 210 million Americans between the ages of 16 and 68 -- what he calls a "plausible measure of the potential workforce." If you assume that each of those people is able to hold down a full-time job, he wrote, they would offer a total of 420 billion potential working hours. However, during 2014, Stockman noted, only 240 billion working hours were actually recorded by the Bureau of Labor Statistics.
Using this formula Strockman calculated that the unemployment rate was really 42.9%. However, as the same Politifact article
makes clear, Strockman’s calculation treats people working part-time hours as
partly unemployed, and doesn’t account
for the valid reasons why many part-time workers may be doing so by choice,
e.g. parents unable to work full-time because of child-rearing duties, students
who are balancing work and school, and the disabled.
“Okay,” you may concede, “the
official unemployment rate, also called the U-3 rate, may be 4.9%, but what
about the U-6 rate, which includes those who are officially unemployed as well
as those who are working part time for economic reasons and those who are ‘marginally
attached’ to the work force?”
And I would ask, “Why are you
speaking like that? Talk like a normal person!”
It’s true that the U-6 rate, now and
always, is higher than the U-3 rate. The current U-6 rate is 9.9%, down from a
high of 17.4% in the same month that the official unemployment rate peaked in
2009, and from 14%, which was where it was at in the month that Obama first
took office. Another graph showing the unemployment rate over the last 22 years
(U-3 in red, U-6 in green):
As stated above George W. Bush left
office with a U-6 rate of 14% compared
to 7.3% when he took office. So we see that both the U-3 and U-6 rates have
markedly improved under Obama compared to where they were when he started his
first term.
Yet 53% of Republicans still think
the unemployment rate has risen under Obama, a misconception happily reinforced
by the Right-Wing Spin Machine and the party’s presidential candidates. The truth
is that under Obama the economy has had a record 71 straight months of private-sector
job growth, while the size of the government, which the Right claims is too big
and bloated, actually shrunk.
Here are three charts showing the
performance of Bush v. Obama using three different measurements, fig. 1: private sector job creation, fig 2: official (i.e. U-3) unemployment rates,
and fig. 3: corporate after-tax profits
(this last puts the lie to the Right’s claims that Obama is a Far Left
Socialist who has spent seven years destroying business in this country):
There is a saying attributed to
former Senator Daniel Patrick Moynihan (D-New York): Everyone is entitled to
his own opinion, but not his own facts. The 53% of Republicans who think
unemployment has gone up under Obama are not entitled to their own facts, to
say nothing of the 43% who believe he his is a Muslim, or the 35% who believe he was born outside of
the United States. Neither Obama, nor the ACA, is a job killer. It’s not just
me saying that; reality is saying that.
Lastly, let’s talk about the ACA, a
bill that the Right warned would lead us down the road to jackboot Socialism,
mass unemployment and ultimately the death of the American Dream. Since 2010 the
rate of uninsured Americans has fallen from 16% to 9%:
That seven point drop isn’t just a
number--it’s millions of Americans who no longer have to worry about what will
happen if they get sick, Americans who will no longer have to wait until a treatable
condition escalates and become untreatable, who will no longer be clogging emergency
rooms for illnesses that would be more cost-effectively treated by a family doctor.
People no longer have to fear that they will be denied health coverage because
they have a pre-existing condition, or that they will be dropped on a technicality
if they already have insurance and they get sick, or hit an arbitrary cap on benefits
set by their insurer.
How many more Americans would have to
access to life-saving health coverage if the governors of the 19 states that
have refuse to expand their Medicare programs (nearly all of these states being
governed by Republicans) would stop their political posturing? How many people
have died, or will die, because a small group of people, many of whom pride themselves
on their Christian values, have decided that turning their noses up at the President
is more important than the health of their citizens?
sources:
http://www.bls.gov/news.release/empsit.t15.htm
http://www.macrotrends.net/1377/u6-unemployment-rate
http://www.macrotrends.net/1339/unemployment-rate-last-ten-years
https://www.washingtonpost.com/news/the-fix/wp/2015/11/20/the-amount-of-misinformation-about-our-economy-is-amazing/
https://www.washingtonpost.com/news/fact-checker/wp/2014/02/26/is-obamacare-a-job-killer/
http://www.forbes.com/sites/adamhartung/2014/09/05/obama-outperforms-reagan-on-jobs-growth-and-investing/#1efb688820bc
http://www.forbes.com/sites/dandiamond/2015/11/05/americas-uninsured-rate-is-now-historically-low/#71964ef76f70
http://www.politifact.com/truth-o-meter/statements/2016/jan/29/ted-cruz/ted-cruzs-pants-fire-claim-health-care-law-nations/
http://www.politifact.com/truth-o-meter/statements/2015/sep/30/donald-trump/donald-trump-says-unemployment-rate-may-be-42-perc/
http://www.motherjones.com/politics/2016/01/cruz-claims-%E2%80%9Cmillions%E2%80%9D-have-lost-their-jobs-because-obamacare
http://mediamatters.org/research/2016/02/26/rubio-and-cruz-echo-right-wing-media-with-their/208840
http://money.cnn.com/2016/01/08/news/economy/us-economy-jobs-second-best-year-since-1999/
http://obamacarefacts.com/uninsured-rates/
http://historyinpieces.com/research/us-unemployment-rates-president
https://ourfuture.org/20141208/bush-vs-obama-on-the-economy-in-3-simple-charts
https://www.dpcc.senate.gov/?p=blog&id=462
http://www.pewresearch.org/fact-tank/2015/01/14/job-shifts-under-obama-fewer-government-workers-more-caregivers-servers-and-temps/
http://www.theguardian.com/world/2013/apr/02/americans-obama-anti-christ-conspiracy-theories
http://www.usatoday.com/story/news/politics/elections/2015/09/01/iowa-poll-republicans-believe-obama-not-born-us/71502150/
http://familiesusa.org/product/50-state-look-medicaid-expansion
sources:
http://www.bls.gov/news.release/empsit.t15.htm
http://www.macrotrends.net/1377/u6-unemployment-rate
http://www.macrotrends.net/1339/unemployment-rate-last-ten-years
https://www.washingtonpost.com/news/the-fix/wp/2015/11/20/the-amount-of-misinformation-about-our-economy-is-amazing/
https://www.washingtonpost.com/news/fact-checker/wp/2014/02/26/is-obamacare-a-job-killer/
http://www.forbes.com/sites/adamhartung/2014/09/05/obama-outperforms-reagan-on-jobs-growth-and-investing/#1efb688820bc
http://www.forbes.com/sites/dandiamond/2015/11/05/americas-uninsured-rate-is-now-historically-low/#71964ef76f70
http://www.politifact.com/truth-o-meter/statements/2016/jan/29/ted-cruz/ted-cruzs-pants-fire-claim-health-care-law-nations/
http://www.politifact.com/truth-o-meter/statements/2015/sep/30/donald-trump/donald-trump-says-unemployment-rate-may-be-42-perc/
http://www.motherjones.com/politics/2016/01/cruz-claims-%E2%80%9Cmillions%E2%80%9D-have-lost-their-jobs-because-obamacare
http://mediamatters.org/research/2016/02/26/rubio-and-cruz-echo-right-wing-media-with-their/208840
http://money.cnn.com/2016/01/08/news/economy/us-economy-jobs-second-best-year-since-1999/
http://obamacarefacts.com/uninsured-rates/
http://historyinpieces.com/research/us-unemployment-rates-president
https://ourfuture.org/20141208/bush-vs-obama-on-the-economy-in-3-simple-charts
https://www.dpcc.senate.gov/?p=blog&id=462
http://www.pewresearch.org/fact-tank/2015/01/14/job-shifts-under-obama-fewer-government-workers-more-caregivers-servers-and-temps/
http://www.theguardian.com/world/2013/apr/02/americans-obama-anti-christ-conspiracy-theories
http://www.usatoday.com/story/news/politics/elections/2015/09/01/iowa-poll-republicans-believe-obama-not-born-us/71502150/
http://familiesusa.org/product/50-state-look-medicaid-expansion