The U.S. unemployment rate has now topped 10 percent. This has been predicted for a couple of months now, but still YIKES! Of course Obama warned us that if we did NOT pass the stimulus bill our unemployment rate would reach 9 percent. Too bad he didn’t tell us that if we DID pass it, it would exceed 10 percent.
Update: Mark Tapscott makes the argument that unemployment is now a leading indicator.
Unemployment has hit 10.2 percent, the highest level since the 1983 recession. Obama administration officials will no doubt try to spin this latest bad economic news by noting that unemployment is typically a “lagging indicator.” That was true in the old days, but it won’t cut it in the age of the global economy and Internet-driven 24/7 news cycle. Unemployment may now be something of a leading indicator because business executives make decisions about whether to invest in new jobs much more quickly and based on vastly more data.
Kim adds: A Fox Business Network anchor reminded us this morning on Fox and Friends that economists didn’t expect the unemployment rate hit 10% until next year some time, which was supposed to be its peak. This makes me wonder, has the unemployment rate not yet peaked? Will it only increase further?
Don’t forget that Christine Romer said last month that any “benefit” the stimulus had has already taken place and that we won’t see any “benefits” next year. I’d like to hear from those who have tried to justify this stimulus by saying that it prevented the economy from getting worse than it already is. Will they actually try to argue that the unemployment rate would be even higher without the gargantuan stimulus bill? This is scary stuff, folks, especially since those same people who said this current stimulus was necessary to keep the unemployment rate from going above 8% are now saying we need another stimulus.