Obama administration policies are sabotaging job growth.

Today, the Labor Department released its July jobs report and yet again, the numbers are dismal. Unemployment rose to 8.3 percent and 12.8 million of Americans  are out of work, of which 5.2 million have been out of work for at least half a year.

While it is good news that 195,000 jobs were added in July, unfortunately it is not enough to keep up with the jobs needed to pull the economy out of its withering growth rate.

In the past few years, Obama Administration policy has perpetually chosen the path to discourage job growth and slow the economy. Here are three of those policies:

  • Obamacare–  By requiring companies with 50 or more employees to  provide healthcare, Obamacare will de-incentivize companies from growing and hiring new employees.  Research shows, “the cost to an employer of hiring a full-time worker increases to at least $10.03 per hour and for those with family health coverage, it is at least $13.75 an hour” this could lead to employers reevaluating new hires due to the additional fixed cost of providing government mandated healthcare coverage.
  • Failed Stimulus Package– As part of President Obama’s Stimulus Package, unemployment benefits are extended up to an additional 20 weeks. Although the government distributes the unemployment checks, it is the former employer who must  pay the taxes on those unemployment benefits. How do you control this? The New York Times answered by saying “By making as few hires as possible”.
  • Increased Environmental Protection Agency Regulation– The EPA has begun to place more stringent regulations on sulfur dioxide emissions that will cut down coal production and close production plant which employ thousands of workers and contributes to $1.3 billion dollars of Texas’s state economy. The impact in Texas is a small example of what is to come if Obama continues to place stringent regulations on coal manufactures.

 What do you think of the July jobs report?

Comments (57)

Jean Smusz - August 3, 2012

The above 3 points are valid and realistic. I have heard conversations, from employers, and they will be holding back on new hires and cannot be offering health insurance because of the cost. It’s small business! What else can one say or think. This President is on a calculated path of destruction and who is to stop him? People who like him, on the surface, will not look down deep and see him for his beliefs.

Nelson Whipple - August 3, 2012

Maybe the number should be 4. Energy policies have been very costly for employment, prices, foreign trade balances and so on. Oil, natural gas coal and nuclear have all suffered.

Wilfred O. Uhl - August 3, 2012

One month’s job report doesn’t mean much. We need to look at it quarterly or annually. From this perspective, this is the slowest job recovery following any recession. Obviously this is unsatisfactory. There may be many causes, some of which are attributable to Administration policy, some to congressional deadlock, and some to outside influences (Euro trouble for example).

Charles Bonuccelli - August 3, 2012

ObamaCare has pushed up the cost of healthcare insurance significantly. By mandating certain care as required with no co-pay (its term is “free”) such cost is absorbed by the insurance premium whether you use it or not. Together with a current push to increase the minimum wages the job losses are staggering. Unemployment among teens and young adults is around 50%. And companies also absorb the hidden costs of unemployment with many states increasing the unemployment tax rates on employers that have not been laying off employees. All of this increases the minimum cost of having employees. Add this to the moral objections that employers and individuals have for funding abortions and other dictated benefits and many companies will be dropping coverages for employees altogether for both moral and financial reasons..

Donald Greene - August 3, 2012

The July jobs report is a farce. Firstly, the Federal Government has done absolutely nothing to “create jobs,” despite Obama taking credit for it. Secondly, he and his Administration have done precisely the opposite by promoting and implementing ObamaCare, and by imposing burdensome — and in too many cases, impossible to comply — regulations (coal-fired energy producing being an example). Thirdly, he and his Administration have castigated the private business community by characterizing it as having been created and supported by others than the founders and owners (Obama’s pronouncement “if you own a business, you didn’t build that — others provided the support to allow it to exist and thrive,” being a recent example but by no means the only one). Fourthly, He and his Administration are insistent on allowing the demise of the “Bush tax rates” for those earning $200,000 or more — a category that includes numerous small business owners, the primary creators of new jobs. Fifthly, the unemployment rate (U3) has increased to 8.3% (actual rate, U6, is 15%) which actually shows the “jobs growth” is a wash.

Lorraine Turowski - August 3, 2012

The fact that Obama thinks the jobs report is good just proves that he hasn’t a clue!

James C. Ferris - August 3, 2012

Those are three bad mistakes Obama has made but they are because he is not an American and knows nothing about America, he even thinks we have 57 states or maybe even as he said he had visted 57 and was going to visit the rest of them. His biggest mistake was th billion dollars he gave to his friends and the other spending that improved nothing and put us just into more debt.

Paul W. Burkett - August 3, 2012

I have clients now that have over 100 employees that are telling those employees that after October 1, 2012 they will not be providing health care insurance. These companies would rather pay the $2,000 per employee tax penalty effective January 1, 2013. I beleive that we are going to see more of this type of business decisions making over the next two years. The costs with healthcare provided are to high for current and new employees. These employers feel that their business will not be competitive in a marketplace. Particularly in a marketplace that grows only at a rate 1.5% GDP.

Duncan Smith - August 3, 2012

Were it not for its possible negative effect on his reelection, Obama would be quite pleased with the sluggish economy. The longer the problems last, the more people will be dependent on the Federal Government for some element of their subsistence. As the great dispensers, the Democrats are the big winners. There was a reason that only “freeholders” were given the right to vote by the Founders.

William Bissette - August 3, 2012

Regarding ObamaCare, I don’t understand how it can possibly be constitutional. Please take the time to read a short article I wrote for one of our local newspapers. Someone schooled in Constitutional law from your organization needs to explore:

A fourth category?
The Constitution makes clear that taxes paid by individuals are in two categories – direct and indirect. Direct taxes must be apportioned among the states according to population, i.e., everyone is assessed equally. Direct taxes are individual or personal taxes exacted directly from the taxpayer. Indirect taxes, however, are optional; they relate to activities, products, and the acquisition of property. They include excise, sales, and property taxes.
In 1913, the states approved the 16th Amendment to the Constitution, granting Congress the legal authority to enact a progressive income tax. The 16th Amendment created a third category of tax. Income taxes are exacted directly form the taxpayer, but aren’t assessed equally.
Ruling that the Affordable Care Act (ACA) is constitutional, the Court ruled that its insurance penalty is the legal equivalent of a tax. Just what kind of tax is a tax/penalty? Clearly, this tax is not an income tax nor is it optional. Since it is exacted directly from the taxpayer, it appears to be a direct tax. According to the Constitution, direct taxes must be assessed equally.
Oops! As the law is written, the amount of tax/penalty is determined as a percentage of people’s adjusted income. Perhaps for that reason, the Chief Justice declared that the tax “does not fall within any recognized category of direct tax.” Somehow, he likens it to a tax on gasoline. Taxes on gasoline, however, are sales taxes that fall into the optional category of indirect taxes. This is confusing!
The tax/penalty in the ACA (ObamaCare) occurs for NOT buying insurance. Congress has never passed a tax on a failure to buy gasoline, or for any other product; nor can I find a tax for inactivity in the Constitution. I am left with the conclusion, therefore, that a tax/penalty is a fourth category of tax. This is troublesome. If it isn’t recognized in the Constitution, how can it possibly be constitutional?

Bill Bissette
Charleston, S.C.

B Gogel - August 3, 2012

It should definitely be four. The chilling actions of Obama’s NLRB discourage employers from growing and being a target. Employers remember the problems Boeing had opening a new production line in South Carolina.

Jim Smith - August 3, 2012

Job killers also include:
1) Oil Drilling Moratorium,
2) Keystone Pipeline,
3) ANWAR drilling denial,
4) every EPA regulation makes it harder to do business, 5) every increase in costs to a business that then must be passed on to the consumer,
6) every dollar spent inefficiently that the Free Market did not authorize,
7) featherbedding and money spent on inefficient labor costs (unions) that the Free Market would spend elsewhere.

Steve Gilbertson - August 3, 2012

As a small business owner ( in manufacturing) my customers require a cost saving goal of 3% each year. When this increase starts we will need to pass on increases and not be able to create any savings. Depending on the size of those increases we may see them move some of the parts we currently produce to low cost countries.

Donald Bolster - August 3, 2012

Whipple is right — Energy independence is the KEY to job creation. We need to drill on and off shore, FRACK for more natural gas, mine for more coal, build more refineries & nuclear power plants, and be a competitor of OPEC’s, not their customer! Let private sector lead in alternatives to fossil fuels with a 10 to 15 year phase over to hydrogen engines (unlimited supply, cost effective and no pollutants emmitted.

Anthony Curcio - August 3, 2012

Obama’s policies are a disaster for this country. Deregulation and lower taxes are the key to growing jobs. Not government programs that redistribute money from the producers to the non-producers. Obama’s policies reward people for buying houses they should not have been approved to purchase in the first place. Then the government penalizes the lenders for foreclosing on a home that they were forced to provide a loan for. The fed prints money hand over fist. Obama’s policies have run trillion dollar deficits every year he has been in office. He tries to divide Americans against one another: men against women, straights against gays, blacks against whites, arabs against jews, christians against muslims, parents against students and on and on. Meanwhile, Obama want to tax us more so the government can throw our money away on failed programs, corruption, redistribution of wealth. Let’s deal this guy a big blow in November!

Ben Kelley - August 3, 2012

Three good examples. I agree with Nelson that the energy policies have been terrible for economic growth as well. Just by saying Yes to the Keystone XL pipeline he could have created 20,000+ jobs that would not have cost anything to the taxpayers. Like Rush would say, Obama is in an ideological straitjacket, and he absolutely refuses to try anything new. He has doubled down on his own failed policies that have driven up the deficit and halted job growth for years.

Charles W Eisenhuth - August 3, 2012

Who’s surprised?

Andy Haradson - August 3, 2012

I think Obama’s done a lot of things to stagnate the economy, and I think economic stagnation is his intention. The recession and slowed growth are largely consumer-driven, and Obama’s restricted changes, such as growth in domestic gas, oil and coal mining, that would decrease retail energy costs and make consumers believe that the economy is improving.

But it’s more than that. Whether Obama truly is a loose-cannon radical or he merely speaks like to one to impress his America-hating constituency, he says a lot of things that make people unsure. He creates uncertainty and division. With Obama as president, America is more divided as a nation than it ever has been. It’s almost as though it’s two countries instead of one. He and his constituency have stagnated this country with inner conflict, and I dare say that’s exactly what he and his constituency want to do.

Joseph C Beck - August 3, 2012

The thing never emphasized is how many people are no longer in the work pool. Even with the drop in the job seekers, the unemployment rate still went up rather than down with the glorious number of new jobs. Somewhat of a paradox. All of the three points are certainly valid and the continuing regulations will continue to cut down on the incentive to hire.

Just Questioning - August 3, 2012

What do I think…it is time to make the US the # 1 energy producer for the foreseeable future.

John Larsen - August 3, 2012

From the beginning of the Obama administration they have thrown one roadblock after another at anyone in business or thinking of starting one. Business leaders one after another have said stop with the added regulations,health care taxes. and the constant demeaning of business owners. The auto takeover,Keystone pipeline,failed green energy companies as well as the threat of card check are just a few issues holding back job growth.

Janice Wyman - August 3, 2012

Obama’s policies are working. He is systematically putting us in fiscal crisis to further his socialistic ideals. According to his plan to fundamentally change America he wants everyone to be dependent upon the Government and therefore the governmental ruling class will have all the power. What he doesn’t foresee is what will happen when there is no one left to work to pay taxes to support his Government. All socialist/communistic society have failed but he seems to believe his plan will work. When will most people realize he is not incompetent but skillful in his implementation of overreaching Executive orders.

John Martin - August 3, 2012

While I agree with all of these, however one thing that is above all these is the fact that this president and his administration scare most company executives. They never know which additional regulation will be next. On the economy- no one can believe the numbers since they are all false- opinion of a common worker. Go out into the workforce and ask employees or the people how the economy looks. I have been acutely aware of the desperation out there since I call on many plants for business. Right now the economy is worse than reported and many planst are shutting down units or cutting back- looks like another 2009.

nick - August 3, 2012

he is wrong in all that he and his scars do–we need the change

Judy Gitchel - August 3, 2012

There is no reason why the economy shouldn’t be booming by now except that President Obama has done everything to prevent that from happening. How can a man get a college degree and a JD without understanding the basics of economic theory?

Robert Heinrich - August 3, 2012

Are these unintended consequences or deliberate actions to grow dependence and increase the size of government? Obama is a rigid ideologue and he utilizes multifaceted nefarious schemes to achieve his ends. Prediction- An October action against Iran to bolster his election chances. RH

Bonnie Smith - August 3, 2012

No surprise..JUST PRAYING THAT AMERICA WAKE UP!
Just keep thinking of John Kennedy’s book: “While England Slept”. May no one write another on the consequences of ” While America Slept.”
Thank you Heritage for sounding the alarm!

Mike “the Herrett” - August 3, 2012

The 3-Obama blunders are just the tip of his iceberg. I am hoping that November will rid us of several in DC presently. And, I would like to mention a few initials: Harry Reid, Nancy Pelosi, Jim Cooper, Joe Biden, land ast but not least – Mister O, himself!!! Voters: we can change American politics by voting many a DC-crooked politico out of a job. See all of you at the polls!!! 😉

Walter Mattson - August 4, 2012

I agree with the above 3 points and agree with number 4 submitted by Nelson Whipple that energy is a critical factor.
The Republican platform should promote job creation by their own stimulus package that addresses existing energies. Coal, oil, natural gas and nuclear. They should cut all federal taxes on gasoline and fuel oil. This would stimulate all of the US economy. It would help the poor the most since fuel is a large factor in their budgets. It would stimulate farmers, transportation industry, auto industry, food, manufacturers, etc, etc. The platform should promote the drilling of all energy sources such as off shore, Alaska, federal lands etc. Making the US the low cost producer of energy would also act as a lever on foreign sources and help drive down the cost of oil world wide. Thus it would assist the foreign countries in their task of improving their own economies.

Colin - August 4, 2012

Jobs Report… It’s just more of the same, month after month. He has implememnted these policies, ie Obamacare etc as mentioned above. Obama does not intend to do anything which will relieve the situation. I just hope people can see this and will vote this Marxist out come November.

Bart Owens - August 4, 2012

Any job created is despite the federal government restrictions. Without the restrictions job creation would explode,not because a goal of private business is to create jobs but increased business requires more people..I have owned two companies and never has hiring more people been a company goal in our yearly business plan.

Lloyd Scallan - August 4, 2012

It’s truly mind-boggling that so many Americans, including conservatives, do not realize Obama is deliberately destroying everything American. Obama must have high unemployment to continue to bleed the system by forcing more and more citizens onto government support. Obama is not stupid. He know exactly what he is doing.

Steve Kitcoff - August 4, 2012

The true unemployment rate for those who are not counted, those who are underemployed, and for those who have given up looking is more like 22%. Every month more people come off unemployment and they are no longer counted.
When is the media going to tell the truth? It is the same sort of lie by the numbers that is used to hide the true debt to GDP figure. It is a fraud on the public and a distortion that is being promoted in the election.

Michael Cox - August 4, 2012

Reduce the jobs available, thus helping to discourage people from looking for work. Advertising for people to apply for disability, after their unemployment checks stop. LYING about the true unemployment rate, which is actually closer to 15-17% than it is to 8%. All of this adds up for me to making more people totally dependent on the government, which will cause them to vote for the people that are making sure they get their government checks. Looks like election politics to me.

William Freebern - August 4, 2012

Or maybe the number should be 5. The uncertainty about an increase in taxes sabotages growth. (Also, choosing not to raise taxes should not be perceived as “a cut.”)

Si Simonsen - August 4, 2012

It continues to perpetuate the lie that the economy is growing, when anyone can see it is not by observing the facts in his/her locale.
Job increases must be over 150,000 per month just to keep up with population growth!

William E. Corey - August 4, 2012

This country currently sits on the greatest amount of energy resources in the world. We have more oil, natural gas and coal than any other nation. It represents enough wealth to support every U.S. citizen for the rest of their lives and Obama will not let us drill for it while he simultaneously works to destroy the coal industry. Amazing!
Even more mind boggling, If the numbers are to be believed, half of the people want to re-elect him.

robert english - August 4, 2012

i’ll wait for the revised numbers

James Klauke - August 4, 2012

The problem is that you are preaching to the choir. You need to get in my daily paper or on my local evening news program. Perhaps you should comment on my personal quote, “The biggest on going crime in America today is the Liberal media and their failure to tell the people the truth”.

Alan Heine - August 4, 2012

The economy is 3/4s of the current issue, but the lasting affect of creating a dependent society is the future struggle we have to begin fixing if we are luck to replace Obama. This can only be cured with, Responsible, Moral and intelectual honesty. Secularism is not selective in its destruction.

John E Munger - August 4, 2012

According to NYT article and Sy Hardin column today the July numbers could be off by 60% due to seasonal adjustments that get figured in. Thus, we should not be surprised if the number is significantly revised – as I think the last 40 or so have been? July is the worst month for this Sy says.

Robert McDougal - August 4, 2012

What Obama policy has created jobs in the U.S.?

Karen Newton - August 4, 2012

Closeing coal fired electricity producing plants, derailing the Canadian pipe line and closing off shore drilling should be at the top of the list! Where is the nuclear plant he said he would start. These things would give us jobs and cheap energy. If our congress is too lazy to impeach him, we must vote him out by a land slide.

merbeau - August 5, 2012

The jobs lost was almost equal to the jobs created making for a net zero in revitalizing the economy. Those jobs created were service industry jobs either part time or minimum wage. No one in the media or for that matter a lot of commentors speak of the benchmark for recovery during Reagan’s term. Over 400,000 jobs were created monthly to pull the economy out of recession. We need to place more disposable income into conumer’s hands to make progress which will require (in my opinion) outside the box thinking.

Steven Distelrath - August 5, 2012

Typical path of the corrupt government to adjust the numbers to justify stealing even more money from the sheeple as with global warming they can create more fines, fees and regulation which will kill the economy to satisfy their lust for power.

Simon A Tucker - August 5, 2012

The largest employer in the US is the government, second largest employer is the fast food industry.
Are we going broke yet????

john uhrhammer - August 5, 2012

The 3 points are important and valid as is Whipple’s 4th point. I suggest that there is a 5th point, the federal government’s invasive and detrimental controls in our education process. When we have ourselves “dumbed down” then we become a 4th world nation! Look at how some of the 3rd world countries became that way – socialism does NOT work!

Paul Phillips - August 5, 2012

I don’t believe anything Obama can do now will change the situation because business can’t and won’t trust him not to revert to type after the election if he changes his course and wins. I think it will be after November that there will be any possibility of improvement.

Geoffrey Boynton - August 5, 2012

You miss a vital point. The Obama administration has no understanding of capital markets or the formation of capital. Saving is the foundation of any healthy economic activity. Government exists by capturing the energy of the people. This is done through taxing or borrowing which is an indirect tax. The most positive action that government can take is to protect and foster that special energy of the people, for without honoring this relationship the society will eventually suffer and fail. Obama has taken the extraordinary position that he is motivated by the promotion of fairness in the society. This is an open-ended position which takes no responsibility for unintended consequences. Life is full of risk, and to remove or diminish it except in the most extreme or most needy situations is to extinguish incentive and creativity, essentially stealing that special energy with which we are all endowed . So the
government has a tricky role to play if it truly wishes to preserve the energy of the people that enable it to exist. The history of the US began with unbounded energy of the people. It has taken generations for the savings (the storing of extra energy) to be depleted by various actions: the list is long. We are now a a point where there are no more savings, only diminishing credit which is fast disappearing. The people actually believe that the answers of false promises without the sweat and blood of their energy will lead them to safety. This course will not end well.

Lorraine Root - August 5, 2012

The jobs report is pathetic. I think the unemployment rate is higher than 8.2 or 8.3%.

Steven Rankens - August 6, 2012

It is of course a failure due to the current administration’s policies. The president has no clue on how to create jobs, what he is good at is standing on the throats of job creators. Just because a 160,00 or so jobs were created, what the main stream media is not telling American’s is that there are approximately 150,000 people entering the work force every month, so if you look at it month by month, it has been a net loss of jobs, not to mention keeping up with population growth. The real jobless numbers are between 12% and 15% unemployment, even when this administration cooks there own books they can’t even get below 8%! Being a social organizer and never really having a job, it’s no wonder this incompetent president is doing exactly what he knows, NOTHING! He has created jobs however, gave money to Brazil to help them drill for oil, gave money to a car company in Finland to produce electric cars, gave money to China, Mexico… all totaled of 29 billion dollars, he has disdain for America, Capitalism, and our military. We should be leading the world in everything, not playing catch up, that’s the American spirit. Obama does not share OUR ideals, he need’s to be returned to private life and forgotten about. We have a long road ahead of us, even the new President (Romney) is going to have a hard job. I know that he will not make excuses or blame the past administration, but do the work that need’s to be done. VOTE OBAMA OUT, OR WE WILL BE “HOPELESSLY CHANGED”.

Rick - August 6, 2012

As a small business owner myself, I totally agree with B Gogel that the NLRB is a tremendous part of the problem. You can’t protect yourself from the abuse and you certainly can’t afford to fight any actions they bring which then encourages more abusive and fraudulent claims from employees.

L. B. - August 6, 2012

Nonsense! That isn’t a drop in the bucket! Take off the Obama shackles and our economy will soar! This country is full of people waiting for the Opportunity to show what they can do. Obama & company know this and do everything possible to tie them down!!!!

Debbie - August 6, 2012

As with so many things concerning President Obama, I have generally found it more useful to look at his actions versus listening to his words because the actions are instructive. The words, on the other hand, are distractions. From ObamaCare to his alleged energy policy, to the regulatory over-reach, I think it’s clear that he really does NOT want to create jobs.

Jim - August 6, 2012

I own a small business, started in 1982. Right now I don’t have any employees, have had as many as 6. My busness is service, could right now handle 1 or 2 employees. Part of the reason not to have employees, they seem to want to tell me how to run the business, also the Government work that it takes for everyone. Like holding out taxes, you don’t get payed for any of the Gov work, the IRS employees that our taxes pay for to check forms get payed. Almost all business have to collect sales tax, send it in, receive very little or in some cases nothing. Our sweet Pres is doing all he can to put most business, out of business. I started this business without help from our Gov, got loan and took all the risk, all alone without employees and now I am that way again. I am 65 still working and not drawing SSI. I could fill this page with neg comments but will stop. THANKS

Todd Lester - August 7, 2012

One of the biggest problems gets overlooked – Obama’s pro-marxist, anti-business posture. Businesses owners are scared stiff that he will get re-elected with his radical policies and anti-business ideology, and for good reason. If he’s been this radical with a re-election to be concerned with, imagine what he’ll be like when he knows there will be nothing to restrict him in a second term.

Bob Kornblum - August 11, 2012

We all know that the 8.3 percent is only one half of the
real figures. The 2700 pages in the Obama health care
plan need to be put in the center of the Mall and burned.
The EPA at this time is run and controlled by proggressive socialist who want to completly destroy
the free market.

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