News of the Day - 01/09/11

Obama Created More Jobs In One Year Than Bush Created In Eight

This morning, the Labor Department released its employment data for December, showing that the U.S. economy ended the year by adding 113,000 private sector jobs, knocking the unemployment rate down sharply from 9.8 percent to 9.4 percent — its lowest rate since July 2009. The “surprising drop — which was far better than the modest step-down economists had forecast — was the steepest one-month fall since 1998.” October and November’s jobs numbers were also revised upward by almost 80,000 each. Still, 14.5 million Americans remain unemployed, and jobs will have to be created much faster in coming months for the country to pull itself out of the economic doldrums.

Will Our Economy Ever Recover From the "Greatest Recovery"?

Mark Provost | Saturday 08 January 2011

In a January 2009 ABC interview with George Stephanopoulos, then President-elect Barack Obama said fixing the economy required shared sacrifice: "Everybody's going to have to give. Everybody's going to have to have some skin in the game." [1]

For the past two years, American workers submitted to the president's appeal - taking steep paycuts despite hectic productivity growth. By contrast, corporate executives have extracted record profits by sabotaging the recovery on every front - eliminating employees, repressing wages, withholding investment and shirking federal taxes.

Let Obama’s Reagan Revolution Begin

By FRANK RICH

BARACK OBAMA’S Christmas resurrection was so miraculous that even a birther or two may start believing the guy is a Christian.

Nothing captured the president’s sudden reversal of fortune more vividly than the Linda Blair-like head spin of the conservative pundit Charles Krauthammer, who pronounced the Obama agenda “dead” on Fox News on Nov. 3 only to lead the bipartisan media hordes anointing him “the new comeback kid” six weeks later. Last week Obama’s Gallup job approval rating fleetingly hit 50 percent for the first time in eight months. Even in post-shellacking mid-December, polls found that Americans still trusted him more than Washington’s Republican leaders to fix the nation’s ills — health care included, according to the ABC News-Washington Post survey on that question.

America's housing bubble still deflating

As they failed to spot the bubble, most economists seem oblivious of the threat of further market falls to come

Dean Baker | Wednesday 5 January 2011 14.00 GMT

If house prices fall by 15% in 2011, the likely cut in consumer spending could cost 1% in GDP.

How many economists does it take to see an $8tn housing bubble?

The answer to that question has to be many more economists than we have in the United States. Very few economists saw or understood the growth of the $8tn housing bubble, whose collapse wrecked the economy. This involved a degree of inexcusable incompetence from the economists at the Treasury, the Fed and other regulatory institutions who had the responsibility for managing the economy and the financial system.