So you know, this is going to be an overtly political blog. Because no sane person can listen to the various pronouncements and not take umbrage at the deliberate actions being taken to harm America and American workers- for specific political gain.
I am not going to allow Harry Reid’s (Senate Democratic Majority Leader) statement to stand. He claimed that 8 million jobs were lost under Bush. No, that’s not true- but 4 million jobs were eradicated. (You can possibly up that to 5.5, but that will be clear in the 3rd paragraph down.) Because the banking industry was allowed to run roughshod over common sense. And, while they rail against the Volcker Rule that was imposed, Jamie Dimon- and JPMorgan Chase just showed us what happens when someone thinks they are above the law. They lost $ 2 billion (or maybe $3 billion- but what’s a billion bucks between friends?) in the first quarter. Not enough, thankfully, to take the bank down, but a very large number, nevertheless. One that grew to that size because they were trading in the exact way they did to bring the country to its knees, and deliberately ignored the warning signs.
Oh, and let’s not accept the performance of Dimon on Meet the Press as any fact or truth. David Gregory may be a nice guy, but his economic fortitude is virtually non-existent. Gregory, trying to be affable (plus being in the dark about economics), never once asked Dimon how this trading would be affected by the Volcker rule. Gregory never once confronted Dimon when the claim that these were hedges was propounded.
(Just so you know, a hedge is supposed to reduce risk. [If you want more information on hedging, you can check my post here.] And, what is the prime risk to a bank? A bad loan. These hedges that cost JPMorgan Chase $ 2 billion were identical to those risks. If anything, these were portfolio hedges- which are specifically precluded by the Volcker rule- exactly the restriction Dimon has been lobbying to get removed. Just like WalMart lobbied to water down the Foreign Corrupt Practices Act, when they knew they were guilty- by bribing Mexican officials to grow their business. )
Now, during the first 13 months of Obama’s presidency, a total of 4 million more jobs were lost. Of which 2.3 million occurred in January, February and March of 2009- before any policy changes suggested by Obama could even take effect (especially, since he was not inaugurated until 2/3 of January had elapsed). Since those three months, 2 million new jobs have been created. Not enough, for sure, but a major change.
Now, let’s consider another fact. Forget that Mitch McConnell (Senate Minority Leader) averred that his- and every Republican’s- number one job was to insure that Obama be a one term president. Or, that John Boehner (Speaker of the House, Republican) can’t control his Tea Party Republicans. No, let’s forget that for now. And, recognize that since 2010, eleven states had their control shift to the Republicans. Those same folks whose number 1 job is to insure that Obama be a one term president. Which 11 states? Alabama, Indiana, Maine, Michigan, Minnesota, Montana, New Hampshire, North Carolina, Ohio, Pennsylvania and Wisconsin. And, the loss in the public sector employment in those states comprises 40% of the total public sector job loss in the US. (Look carefully at the size of these states- they don’t comprise 25% of the population OR 25% of the public sector jobs- no where close to 40% either.) Then, for good measure, we’ll add in Texas, which is under Republican control. And, lo and behold, we can now account for 71% of the public sector job loss in the US in that time period. (Just so you know, the other 38 states had very small decreases- or even gains in said employment.)
“So what?”, you say. We probably didn’t need those folks anyway. After all, who needs teachers, firemen, policemen, garbagemen? But, let’s consider another basic fact. 400,000 jobs have been pared by these states. Which, had they still been in place would make unemployment closer to 7% (still not a good number) . (And, does not take into account that these job losses lead to other job losses due to more reduced demand.) And, more public sector jobs have been eradicated than under any other previous administration’s tenure. Just so the Republicans could blame the unemployment problem on Obama. Insure he would be a one-term president. While private sector job growth has continued unabated for some 25 months, now.
I deliberately held this post- which would have been more timely a few weeks ago- to insure that i toned down my feelings as much as possible. Yes, this IS toned down.
See, I like this kind political talk…information, less emotion and pure information. You might feel like you “ranted” but I’ll take this kind of rant over the typical political rant seen on FB any ol’day. Give me facts, figures, and less emotion so informed choices can be made, not choices based on hear-say and emotional vomit! Thank you for the numbers my friend!
Lisa Brandel recently posted..Nursery Ii by Lisa Brandel
Thanks for the comments, Lisa. Glad you liked the post.
Every president inherits the previous presidents problems. It takes at least the first half of their presidency to do it. If it can be done at all. I mean just look at the war Bush started…
I don’t care who was or is PRESIDENT. The executive can only do so much. It’s the legislative branch – and the state legislatures- that need to allocate money to rebuild infrastructure that is beyond decayed (which will up employment) and when the economy is down, the costs are lower.
The 11 states you mentioned are some of the most hardest hit economy wise in the country. I grew up in Montana and for the regular inhabitants there & their elected officials they don’t have enough strength to raise much problem for the president and we just moved from Michigan which is in such bad economic condition they where bleeding so badly they couldn’t lift a collective finger to create problems for anybody.
Its time to stop saying its democratic or republican problem. Our problem is an American one and until we can stand as an united front we don’t have to worry about President Obama being a one term president. We need to worry about the United States standing and remaining as a free enterprise.
shawn recently posted..Is Your Love Running Over?
Actually, they are NOT among the hardest hit. Montana has a 6.2% unemployment rate. Facts are important. I am NOT saying the economy is bad, but the choice of these states to put their state employees out to pasture was a calculated one- just like, as a country, we have made grievous errors in not maintaining our infrastructure. One of the interesting things Virginia did when the economy hit the skids and the construction industry was among the hardest was to begin a major construction effort for schools and the like- which we needed- and to use the lowered pricing to its advantage.
It is NOT a Democratic or Republican issue- but it’s absolutely clear that the choice to terminate employees who provide necessary services, to not build infrastructure, and instead to decide that it’s an immigration issue and a taxation issue is clearly a partisan- and very, very, very bad miscalculation- either deliberate or intentional.
Roy
Well, that is pretty frightening if politicians are calculating the demise of our country in order to insure Obama doesn’t get elected again. Talk about skewed priorities. The politics in this country these past several years is beyond horrifying. Thank you for enlightening me of how scared I really should be!
Suerae Stein recently posted..I’ve got a Hunch!
One would hope not- but we’ve only their words by which to gauge them- and they have been pretty explicit, Suerae.
Roy
Roy, some of the comments seem to be missing… and can we get you on Meet the Press?
Anne Wayman recently posted..Finding Freelance Balance
Anne…
The comments need to be approved by me- to insure they are really comments and not advertisements for some awful sex toy or vacuum cleaner- so there is a delay in their appearance. For that, I’m sorry. For saving you from the trash, I’m thrilled…
I have not been on a panel in many a year (ok, cut the sighs of relief- now!)…I tend to be invited nowadays for the techie discussions, since I am no longer intimately involved in political activities…
Anne…
The comments need to be approved by me- to insure they are really comments and not advertisements for some awful sex toy or vacuum cleaner- so there is a delay in their appearance. For that, I’m sorry. For saving you from the trash, I’m thrilled…
I have not been on a panel in many a year (ok, cut the sighs of relief- now!)…I tend to be invited nowadays for the techie discussions, since I am no longer intimately involved in political activities…
A long time ago my sister Anica worked for a Savings and Loan. Yes, that was a long time ago. She said that the men she worked with could count money, but had no understanding of it. They kept on making loans when the economy was like it became again. What has happened, whether by one party or another, has hurt many, many people in the private as well as the public sector, which hurts more pockets and causes more foreclosures. Meanwhile we fight undeclared wars against -isms, drugs and people coming here who are willing to work for slave wages while paying all sorts of taxes except income tax. The wars we are fighting are making a lot of gangsters and legal people very rich while everyone else is seeing their home drown under water. I don’t see an easy fix. A revolution might work. Has the country gotten to big to control itself? Has the Constitution become a dated document?
The banking industry in particular has a desperate need to be regulated. The removal of Glass-Steagall set us back- and the failure to implement Volker is letting it get worse.