Another Summer of Suffering in the Obama Economy

July 6, 2012

Another Summer of Suffering in the Obama Economy

Economic Data Continues to Show a Weak Economy, But Democrats Won’t Abandon Their Job-Destroying Agenda

Economic data out this week sparked new fears of weakness in the economy as manufacturers struggle and wages stagnate.
These grim economic signals come as millions of Americans are already unemployed and suffering.
To make matters worse, ObamaCare remains a major hurdle for job creators, but Democrats continue to defend their job-destroying law.

Economic data out this week sparked new fears of weakness in the economy as manufacturers struggle and wages stagnate:

RETAILERS POST WORST JUNE SALES IN THREE YEARS: “As economic uncertainty sapped both consumer confidence and sentiment in June, shoppers also exercised caution with their wallets and delivered U.S. retailers’ worst monthly sales in three years. Total June sales at stores open at least a year … rose 0.1%, missing the 0.5% gain Wall Street was looking for…More than two-thirds of 20 retailers that reported their results missed estimates” (Andria Cheng, “Retailers Post Worst June Sales in Three Years,” The Wall Street Journal, 7/5/12)

CNN: 73% OF AMERICANS RATE ECONOMY AS “POOR”: (CNN | ORC Poll, 7/3/2012)

SERVICE SECTOR POSTS SLOWEST GROWTH SINCE JANUARY 2010: “In another signal of a slowing U.S. economy, the services sector grew at its slowest pace since January 2010, according to an index released Thursday. The Institute for Supply Management said its services index dropped to a reading of 52.1% in June from 53.7% in May.” (Steve Goldstein, “Service Sector Weakest Since January 2010,” The Wall Street Journal, 7/5/12)

“FOR SMALL FIRMS, LOWER HIRING EXPECTATIONS FOR THE NEXT 12 MONTHS”: (Anna Louie Sussman, “For Small Firms, Lower Hiring Expectations for the Next 12 Months,” Reuters, 7/2/2012)

“U.S. MANUFACTURING SHRANK IN JUNE FOR THE FIRST TIME IN NEARLY THREE YEARS”: “U.S. manufacturing shrank in June for the first time in nearly three years, adding to signs that economic growth is weakening. Production and exports declined, and the number of new orders plunged, according to a monthly report released Monday by the Institute for Supply Management.” (Christopher S. Rugaber, “US Manufacturing Shrinks for First Time in 3 Years,” Associated Press, 7/2/2012)

Business leaders’ confidence in the economy has dropped dramatically: “…according to a new survey by the Conference Board. More CEOs surveyed view the economy negatively than positively. Only 17 percent viewed the economy positively in the second quarter of 2012, compared to 67 percent in the first quarter. Only 20 percent expect an improvement in six months, down from 59 percent.” (Erik Wasson, “CEO confidence in economy drops dramatically: survey,” The Hill, 7/5/12)

“SLOWDOWN COMES AS U.S. EMPLOYERS HAVE SCALED BACK HIRING”: “The slowdown comes as U.S. employers have scaled back hiring, consumers have turned more cautious, Europe faces a recession and manufacturing has slowed in big countries like China.” (Christopher S. Rugaber, “US Manufacturing Shrinks for First Time in 3 Years,” Associated Press, 7/2/2012)

“WAGES DROP, ONLY THE FIFTH TIME IN 33 YEARS”: “In the latest demonstration of the struggling economy that threatens President Obama’s reelection, average weekly wages fell in 2011, one of only five declines since the category was created in 1978 by the Bureau of Labor Statistics.” (Paul Bedard, “Wages drop, only 5th time in 33 years,” Washington Examiner, 7/2/2012)

These grim economic signals come as millions of Americans are already unemployed and suffering:

12.7 MILLION UNEMPLOYED AMERICANS: (“Labor Force Statistics From the Current Population Survey,” Bureau of Labor Statistics, 7/3/2012)

DEMS SAID UNEMPLOYMENT WOULD BE AT 5.7% UNDER THEIR STIMULUS: (James Pethokoukis, “Miserable May Jobs Report Suggests U.S. in Recession Red Zone,” The American, 6/1/2012)

40 STRAIGHT MONTHS OF UNEMPLOYMENT ABOVE 8%: (Tweet from James Pethokoukis, The American, 6/1/2012)

UNEMPLOYMENT RATE ROSE TO 8.2% IN MAY: “The unemployment rate rose to 8.2 percent from 8.1 percent in April, the first increase in 11 months.” (Christopher Rugaber, “Updated: US Hiring Slow Sharply as Economy Looks Weaker,” Associated Press, 6/1/2012)

UNDEREMPLOYMENT RATE AT 14.8%: (Table A-15, Bureau of Labor Statistics, 6/1/2012)

ONLY 69K JOBS IN MAY: “The U.S. economy suddenly looks a lot weaker. U.S. employers created only 69,000 jobs in May, the fewest in a year, and the unemployment rate ticked up. The dismal jobs data will fan fears that the economy is sputtering.” (Christopher Rugaber, “Updated: US Hiring Slow Sharply as Economy Looks Weaker,” Associated Press, 6/1/2012)

PRIVATE SECTOR JOBS UP ONLY 82,000: (Tweet from James Pethokoukis, The American, 6/1/2012)

“CORE 25-54 EMPLOYMENT RATES STILL NEAR HISTORIC LOWS”: (David Hogberg, “Core 25-54 Employment Rates Still Near Historic Lows,” Investors’ Business Daily, 6/1/2012)

REVISED MARCH AND APRIL DATA SHOW 49,000 FEWER JOBS: (Tweet from James Pethokoukis, The American, 6/1/2012)

300,000 INCREASE IN THE LONG-TERM UNEMPLOYED: (Tweet from James Pethokoukis, The American, 6/1/2012)

UNEMPLOYMENT AMONG HISPANICS UP 0.7% IN ONE MONTH TO 11.0%. (Stephanie Czekalinski, “Unemployment Up for Hispanics, Blacks,” National Journal, 6/1/2012)

To make matters worse, ObamaCare remains a major hurdle for job creators, but Democrats continue to defend their job-destroying law:

PELOSI: “DECISION IS A VICTORY FOR THE AMERICAN PEOPLE”: “This decision is a victory for the American people. With this ruling, Americans will benefit from critical patient protections, lower costs for the middle class, more coverage for families, and greater accountability for the insurance industry.” (“Pelosi Statement on Supreme Court Decision Upholding Health Care Reform,” Office of the Democratic Leader, 6/28/2012)

OBAMA: “IT’S TIME FOR US TO MOVE FORWARD”: “The highest court in the land has now spoken..What the country can’t afford to do is refight the battle of four years ago. With today’s announcement, it’s time for us to move forward… (Susan Crabtree, “Obama Urges Country To Move On After Health Care Victory,” The Washington Times , 06/28/2012)

LAW IS “UNWORKABLE AND UNAFFORDABLE” FOR SMALL BUSINESSES: “While it may have been ruled constitutional, the Affordable Care Act is truly unworkable and unaffordable for our country’s small business owners – particularly franchise owners.” (Catherine Monson, “Why the Health-Care Ruling May Stop Franchises from Opening New Stores, Creating New Jobs,” The Washington Post, 6/29/2012)

U.S. CHAMBER OF COMMERCE: “FUNDAMENTALLY FLAWED” LAW WILL “UNDERMINE JOB CREATION”: “Legislative changes and genuine reforms now urgently needed… the health care law is fundamentally flawed. Left unchanged, it will cost many Americans their employer-based health insurance, undermine job creation, and raise health care costs for all. It is imperative that policymakers and the business community now work together to develop and support genuine reforms…” (“U.S. Chamber Will Continue Efforts to Improve the Health Care System,” U.S. Chamber Of Commerce, 6/28/2012)

NATIONAL FEDERATION OF INDEPENDENT BUSINESS: OBAMACARE IS “RESULTING IN JOB LOSS AND CLOSED BUSINESSES”: “…small-business owners are going to face an onslaught of taxes and mandates, resulting in job loss and closed businesses. We will continue to fight for the repeal…” (“Supreme Court Ruling Limits Freedom, Strengthens Government,” National Federation Of Independent Business, 6/28/2012)

NATIONAL ASSOCIATION OF MANUFACTURERS: “ESCALATING HEALTH CARE COSTS ARE JOB KILLERS”: “Escalating health care costs are job killers, forcing manufacturers to pay more in premiums rather than investing in their business and creating jobs… it is essential that Congress repeal the law and replace it with reform that benefits manufacturers and their employees.” (“Affordable Care Act Ruling Isn’t the End of Efforts to Lower Health Care Costs,” National Association Of Manufacturers, 6/28/2012)

INTERNATIONAL FRANCHISE ASSOCIATION: “3.2 MILLION JOBS AT FRANCHISE BUSINESSES CONTINUE TO BE PUT AT RISK”: “…the law is unworkable, unaffordable and wrong for our country’s small business owners who continue to struggle in a still sluggish economic climate… 3.2 million jobs at franchise businesses continue to be put at risk due to the employer mandate provision, thereby discouraging and disincentivizing the creation of new jobs and business expansion.” (“High Court Ruling Puts Jobs at Franchise Businesses at Risk,” International Franchise Association, 6/28/2012)

NATIONAL RETAIL FEDERATION: “LAW WILL HAVE A DRAMATIC, NEGATIVE IMPACT”: “This law will have a dramatic, negative impact on every employer and employee in the United States and further constrain job creation and economic growth.” (“Retailers Dismayed by Supreme Court Decision,” National Retail Federation, 6/28/2012)

NATIONAL COUNCIL OF CHAIN RESTAURANTS: OBAMACARE “WOULD DO SIGNIFICANT HARM TO JOB GROWTH AND THE ECONOMY”: “…the law would do significant harm to job growth and the economy… Many chains have indicated they will have no choice but to cut back on workers’ hours or close restaurants in order to avoid the penalties.” (“Chain Restaurant Industry Laments Supreme Court Decision,” National Council Of Chain Restaurants, 6/28/2012)