

Mort Zuckerman: President Obama’s Economic Programs Have Failed

America has long been a country where almost everyone, including the poor and unskilled, could get a job. Given the will to do a reasonable day’s work, a job was a passport to economic and social well-being; it was the fount of self-esteem and the foundation of family life. Indeed, work was Life.


[See a collection of political cartoons on the economy.]


Discouraged workers dropping out of the labor force make the unemployment rate look fractionally better, but the 8.2 percent headline masks the misery. It is a reflection of the U-3 statistic, which counts only people who have applied for a job in the last four weeks. Among the jobless army, a staggering 42 percent of them are long-term unemployed, without jobs for six months or longer. Look instead at the more relevant U-6 statistic, which counts the number of people who have applied over the last six months. U-6 also includes those who are involuntarily working on a part-time basis. That U-6 unemployment is now in the range of 15 percent. Since 2008, some 3 million people have dropped out of the job market. If they hadn’t, the unemployment rate would be about 10.8 percent. In March, the unemployment rate seemed to fall a tenth of 1 percent, yet the number of people who are actually employed dropped by 31,000. Why? Because the number of people who looked for a job dropped by 164,000 and they are not considered unemployed. Not to mention that half the new jobs are in temporary help agencies.





What has happened? The process of making stuff fosters innovation, leading to new products. When companies go from prototype to mass production, they scale up, figure out where they can build factories affordably, and hire people by the thousands. But many enterprises in America have discovered they cannot compete in engineering or manufacturing with their Chinese or Indian counterparts, which are equally, if not more, productive with workers willing to accept significantly lower wages. In turn, they gain the skills, knowledge, and experience to innovate. Hence our loss of 6 million blue-collar manufacturing jobs.

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