I speculated recently that the worm may be turning as it relates to the Obama administration’s political capital. The near Teflon like protection that a fawning press afforded him is being overwhelmed by events that have no regard for lofty rhetoric, such as job losses:
WASHINGTON (MarketWatch) — The U.S. economy shed jobs at a faster pace in June than in May, suggesting that the turnaround in the economy may take longer than expected.
Nonfarm payrolls shrank by 467,000 in June, higher than the 325,000 decline expected by economists surveyed by MarketWatch and the 322,000 jobs lost in May.
The unemployment rate ticked higher to 9.5% in June from 9.4% in the previous month. Economists had expected the unemployment rate to rise to 9.6%.
There was only a very slight 8,000-downward revision to payroll losses in April and May.
Since the recession began in December 2007, payroll employment has dropped by 6.5 million.
Construction, manufacturing and professional and business services reported heavy job losses in June. Construction payrolls fell by 79,000, factory payrolls fell by 136,000, and professional and business employment fell by 118,000.
Democrats are already talking about a second stimulus package. That’s just brilliant. How did that first stimulus package work out for you? And don’t forget that under the Bush administration in 2008 a stimulus package was approved. That one didn’t work very well either.
Those unemployment numbers released today contain some chilling results. For example, note the business and professional job losses. While Democrats love to play class warfare and belittle the misfortune of the rich, they refuse to acknowledge that those professionals are the highest wage earners. Except that they aren’t earning wages now, hence no tax receipts. Get your erasers out and prepare to recalculate the Obama deficit.
Update: Check out this chart