Finance / Opinion / Politics

It Took the Obama-Biden Economy More Than Three Years to Create a Single New Net Job

bidenFormer Vice President Joe Biden inherited a recession in 2009 when he and former President Barack Obama were elected in 2008, and if he wins this year, it will happen again.

Although 14 million jobs have already been recovered from the state-led Covid pandemic economic lockdowns in the Bureau of Labor Statistics’ household survey — up to 25 million were lost when labor markets bottomed in April — there is still a long way to go to get back the other 11 million jobs.

Here’s the problem. The last time Biden as in the White House with Obama, it would not be until May 2012 when the U.S. economy would begin creating jobs on a net basis — almost three-and-a-half years after they took office.

To be fair, the economy was still hemorrhaging jobs from the financial crisis at the end of 2008, a trend that began in Nov. 2007, and would not reach a bottom until Dec. 2009, 11 months after assuming office. It took more than two years to stem the tide overall with more than 8 million jobs lost.

Could Obama and Biden have acted quicker? Was the $787 billion stimulus — which easily passed as Democrats nearly had a filibuster-proof majority in the U.S. Senate — enough to provide the American people with immediate relief?

In contrast, President Donald Trump worked with Congress on preempting the Covid recession this spring with the $2.2 trillion CARES Act that included $525 billion of relief for small businesses, supporting 5.2 million small businesses and saving as many as 50 million jobs.

While the 2008 Congress engineered a Wall Street bailout, and the 2009 Congress was focused on wealth transfers to state governments — the 2020 Congress with President Trump worked on a Main Street recovery package.

And so far, it’s been largely successful, with 14 million jobs recovered. The labor market hit its bottom rapidly in this recession in just two months, compared to more than two years in the last recession.

But the headwinds are strong. In September, the limits of the recovery were tested and job creation in the household survey appeared to slow down a bit. 879,000 Americans left the labor force altogether as their unemployment benefits ran out.

The economy,  therefore still has a long way to go, and it will take leadership to get the economy safely reopened. Biden does not appear dedicated to this task, saying he would “shut it down” again if advised by medical professionals even though the scientists are saying you don’t need a lockdown again.

A lot of families are still struggling through the lockdowns. We mustn’t forget them. We need to get America back, no matter who wins the election. This cannot go on forever.

The key to that will be safely reopening schools again so that working families can get back to work, which Biden complained in the first debate would be very expensive to do. But all the same it is absolutely necessary.

In the meantime, Biden has done almost nothing to encourage House Speaker Nancy Pelosi (D-Calif.) and Senate Minority Leader Chuck Schumer (D-N.Y.) to work with the Republican Senate and President Trump on completing the next round of stimulus in phase four legislation.

Perhaps Biden, Pelosi and Schumer are sitting around waiting for a better deal after the election — assuming they are going to win. The risk is that by failing this critical leadership test, the American people might not give them a second chance to disappoint them.

Robert Romano is the Vice President of Public Policy at Americans for Limited Government. 

Reprinted with Permission from - Daily Torch by - Robert Romano

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JohnH
1 year ago

People are afraid to go to work because they might test positive for virus. Trump needs to come up with plan to test people & take away that fear in order for jobs to come back. Have not seen any data on how it worked out when Trump ordered meat packing plants to go back to work, did that work out okay and why?? What did they do that other business can follow??

JohnH
1 year ago

Come up with National Plan to defeat Coronavirus & quit counting on states to do their own thing. And Feds should be funding testing & medical bills for all people associated with virus. The herd immunity method will end up destroying US & a whole bunch of our senior citizens going away. The young may bounce back quicker, but it seems like still questions on long term damages. So why get virus at all ?? A vaccine is good , but will not stop this in tracks like a Nation Plan could. Any plan must have full support from Leadership.

Kim
1 year ago
Reply to  JohnH

I believe the president has made it clear that he wants to get a vaccine and therapeutics out to the public ASAP. He said he will use every resource available to implement his plan to protect the people as soon as the vaccine is proven safe.

Kim
1 year ago

While Obama and Biden were in the White House, my small business had its worst years. And it had been operating for 35 years when they came into office. True, they inherited the Great Recession, and it might have been technically “over” in late 2009. But it wasn’t until late 2012 that it felt as though things had started to turn around.

We had survived several recessions before the one that started in ’07. But administrations during those times were smart enough to implement legislation that actually helped small businesses–not by giving us money. The economy bounced back much faster than the endless trough inflicted upon us by Obama/Biden.

I have a problem with these trillions of dollars being added to the national debt. The pandemic is a great tragedy, for sure, but the only way out of this morass is for business to get back to doing business. Kids need to go back to school; a few families around here are going to have their young children repeat the year. Online learning was a disaster. Half of this state’s restaurants went out of business. Governor’s a democrat.

Biden’s fallback of shutting down the economy will put us in a much worse position. It will be the perfect opportunity for Biden/Harris to achieve the socialist goal of making all of us dependent on government. President Trump proved that his policies work for stimulating the economy and contributing revenues to the Treasury. That’s why we need to re-elect him and V. P. Pence.

Vote for Trump/Pence and other Republicans. Please.

PaulE
1 year ago
Reply to  Kim

The reason the Obama / Biden recovery was so anemic is because they opted to impose so many new regulations on businesses across the board. Banks were hobbled to lend new loans to qualified customers, which dried up capital for both expansion and new business ventures. The EPA went on regulatory spree designed to slow down or stop almost any new business venture that tangentially involved anything EPA had influence over. The mountains of new paperwork and long delays in approval processes to get virtually anything done made a lot of business activity simply unprofitable to pursue. If it is going to take two to five years to get through a simple, straight-forward approval process in the United States, most companies simply opted to either postpone a venture or set up the operation in China. Where the approval process for almost everything is measured in days or weeks. All this “government bloat” of regulation on top of regulation meant job growth here would be pathetic and the economy would be sluggish.

Trump could see the problem as well as anyone else in the business sector at the time. Over regulation here in the United States was crippling our economy, while boosting the economy of China and the rest of Southeast Asia. Which is why Trump was so insistent on streamlining the regulatory morass that Obama / Biden had constructed. Anyone stupid enough to vote for Biden / Harris would be voting to not only restore that economy killing regulatory infrastructure, but increase the regulatory burden by a factor of ten. The GND and the rest of the Biden / Harris economic plan is essentially a massive regulatory blanket that will smother our economy.

Kim
1 year ago
Reply to  PaulE

Hi PaulE–

As I was wrapping up my career, a few EPA regulations were about to affect my business–luckily in a small way. The Navigable Waters Act (or whatever it was called) was going to regulate the drainage ditch in my back yard. Also, I was going to have to spray paths and the driveway with water to keep down dust levels. (There was no dust, and I lived on a very small residential plot with a paved driveway.) The state was trying to get the Rain Tax passed. I don’t know if it did, because I moved then. Our homes lost a tremendous amount of value.

The greatest impact to our small businesses was the uncertainty cast on the economy by an administration that had no idea how it worked. I’ve since moved, but living just outside Washington, D.C. at that time, anything the Obama/Biden administration did sent shock waves through surrounding communities, like a rock thrown in a pond. People were scared, so they pared back their purchases. Many of them lost jobs or lost hours, so our customers disappeared for years afterward. My income was cut by 75%. Lots of our customers worked for the federal government, and, even though they sympathized with the businesses, their shopping habits also changed drastically.

Most of us looked for work elsewhere, but no one was hiring. Some literally lost the farm, and others moved in with family. So for me, and for many other small businesses across the country, the fear factor was more devastating than anything else. But certainly, especially for larger companies, over-regulation and lack of credit availability prolonged the recession.

Trump/Pence!! Keep the democrats out of office!! (Great debate last night…)

JohnH
1 year ago
Reply to  Kim

I have read somewhere, that the formation of EPA and ensuing regulations were one of Communist goals to harm the USA. And looking back, it appears that way.

Kim
1 year ago
Reply to  JohnH

I’ve been sympathetic with environmental causes all my life—yes, a tree-hugger. That’s why many friends and acquaintances were surprised when they learned I was a Republican (actually, closer to Libertarian). “I thought Republicans didn’t care about the environment,” they’d say. But, through the course of an almost 50-year career in horticulture, I was able to educate (without being too overbearing) my customers, and to live according to the tenets of conservation.

Also, importantly, was the wish for an economically prosperous America—for everyone. I respect the Constitution. I pay as little in taxes as the law allows, and support candidates that cut silly regulations and lower taxes. The more regulations on the books, the more jobs disappear. It’s much healthier for a society to have people working at jobs they like, making a living that’s comfortable for them, than being assigned tasks by politicians (e.g., Biden’s reference to doing programming instead of coal mining). That will happen with Biden/Harris in office. Their policies will attack your right to choose your own future; they will limit what you have access to.

So, yes, the EPA has, at times, overreached its authority. But, unless we assume individual responsibility and protect the environment to the extent that each of is able, flagrant abuse will need to be addressed. But I will not stand for an EPA that will make me buy something from Tesla or demand that I water my driveway.

Whether the EPA is part of a Communist plot, well…you decide. If people who disagree with these regulations sit home on Election Day, well…there you go.

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