The chickens came home to roost last Friday when the BLS had to gulp and (1) revise downward March and April jobs data, and (2) boost their count participants to the job market — the statistical aberration that was making the unemployment rate look like it was going down
Last Friday’s dismal jobs report shouldn’t have been much of a surprise to loyal readers. As we’ve said often, CEOs are dismayed by Team Obama’s economic, regulatory and pro-union policies and won’t do any serious hiring while Obama is in power. Period.
For the record, the Homa Files pitched this case over 2 years ago in a post titled: “Why private sector jobs won’t be coming back any time soon … Hint: it’s called passive aggressive resistance” … the punch lines:
Given the Administration’s anti-corporate rhetoric, actions, and proposed game-changing rules, I doubt that many CEOs will be taking on added costs and risks to boost the administration.
More likely, they will let unemployment continue to creep along, and will slow roll the process of rehiring.
Corporate chieftains will sit back and watch the President squirm and spin his “4 million jobs – saved or created”. As Rev. Wright would say “the chickens will have come home to roost”. Passively aggressive resistance at its very best.
Unfortunately, that means we’ll be seeing high unemployment for some time – at least through the 2012 Presidential elections.
The full original post is worth another read !
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Ken’s current take:
Certainly there won’t be any meaningful hiring until the 2012. elections are in the book.
CEO heels are dug in. I’ve heard cocktail party chatter like “Each job added is a vote for Obama … Fool me once, shame on you … fool me twice, shame on me”
CEOs started to relent a bit when the Congress tilted GOP and Obama extended the Bush tax cuts. (Whatever happened to Immelt’s job creation task force?)
But, recent moves – e.g. stopping Boeing’s move to South Carolina, stumping again for higher taxes, especially on off-shore profits – have more than offset any momentum.
We’ll be stuck with unemployment in the 8s until 2013 … or until there’s a substantial policy roll-back .
And, the latter just ain’t gonna happen …