The private sector is doing fine

The Private Sector is Doing Fine

In a press conference in Washington on June 8, 2012, President Obama said that “the private sector is doing fine”.

He added that “Where we’re seeing weaknesses in our economy have to do with state and local government, oftentimes cuts initiated by governors or mayors who are not getting the kind of help that they have in the past* from the federal government“.

Several times during his remarks, which included taking questions from three reporters, the president suggested that the private sector was in a good place. “We’ve seen record profits in the corporate sector,” he said.

 

With an official unemployment rate of 8.2%, and with private jobs down 4.6 million since they peaked in January 2008 – does this make any sense?

Of course it does!

Here’s why.

According to the Census Bureau, in March 2010**, the economy had 223,800 fewer small businesses*** than it did two years earlier.
Now that all the weak businesses that couldn’t ride the storm and couldn’t hold on during the recession have failed and gone under – now the private sector is doing just fine!

As to the federal government not helping out governors and mayors as it has in the past* – that can easily be explained by the federal government running out of money, partially because its work force has grown during the same period by 11.4% – a staggering 225,000 more federal-government employees.

 

Alright!  Calm down. Relax. There is a solution to this. Really. A simple one.

David Axelrod, president Obama’s top campaign strategist said on Sunday June 10, 2012, that the country needs to “accelerate” job creation in the private sectorby hiring more teachers, police and firefighters.

“The private sector, we need to accelerate job creation in the private sector,” Axelrod told CNN’s “State of the Union,” before adding: “One of the ways that we can do that is putting teachers and firefighters and police back to work because those are good middle-class jobs.”

Told that teachers and firefighters are part of the public sector, Axelrod continued to defend his statement. “But that will help accelerate the recovery,” Axelrod said.

 

A footnote on federal-government employment

  • During President Reagan’s 8 years in office – the federal government’s workforce grew by 12,000 employees.
  • President Carter, during his 4-year term, added 100,000 new federal employees.
  • President Obama, in his 3½ years in office, has so far added 130,000 new federal employees.

* Referring to the $780 billion stimulus of early 2009 which funneled massive funding to state and local governments.
** More recent data is not yet available
*** Companies with under 100 employees

One thought on “The Private Sector is Doing Fine”

  1. The ‘problem’ with these ‘gaffes’ is that they really aren’t! As a ‘big Government’ ideologue, our President truly believes what he says about Government not doing well. Just as he believes that Government ‘built that’. Regardless of later explanations that his words were ‘taken out of context’ – these ‘gaffes’ reveal his true beliefs.

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