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LAMBRO: Obamanomics, a synonym for failure
Out of new ideas, president digs up discredited ones
Question of the Day
Yet, no matter how meager the jobs numbers are under Mr. Obama’s remedial reign, the news media goes hyperbolic over them. Network reporters rarely if ever point out that the puny number of jobs being created will not make a dent in the unemployment rate.
The Bureau of Labor Statistics reported that 227,000 jobs were created in February. In a workforce the size of ours, though, that number isn’t going to drive down the jobless rate to more normal levels, says business economist Peter Morici of the University of Maryland.
“The economy must add more than 360,000 jobs each month for three years to lower unemployment to 6 percent. That would require [economic] growth in the range of 4 to 5 percent and is not likely with current policies,” he said Thursday.
This robust level of growth isn’t likely to happen anytime this year or next in a slowing economy that barely grew by 0.6 percent in the fourth quarter last year. Annual growth has averaged 2.1 percent since the recession supposedly ended, and is expected to remain in that range in the first quarter.
Meantime, Mr. Obama and his advisers have been struggling to come up with some new ways to accelerate economic growth and boost job creation. Some are off-the-wall ideas, like the one the administration leaked to the news media this week that had all of the earmarks of a insecure trial balloon.
In a nutshell, the White House wants more home loans made available to people, particularly younger, first-time home buyers, who have weak credit ratings — a high-risk scheme that critics say will plunge the U.S. economy into another subprime housing disaster like the one that led to the last recession.
The administration is pressuring the Justice Department to give bank lenders assurances they will not be subject to legal actions or even financial losses “if they make loans to riskier borrowers who meet government standards but later default,” the newspaper reported Wednesday.
The loans would be fully backed by taxpayers under various housing programs, including the Federal Housing Administration which insures home mortgages against the possibility of default.
That sent up red flags among top banking and housing analysts, who said this was the same irresponsible policy that drove our country into a recession in 2008.
“If that were to come to pass, that would open the floodgates to highly excessive risk and would send us right back on the same path we were just trying to recover from,” said Ed Pinto, a housing analyst at the American Enterprise Institute and former executive at Fannie Mae.
This is how desperate the White House has become as it foresees four years of interminably high unemployment, during which the Obama economy turns into a political synonym for failure and despair.
Donald Lambro is a syndicated columnist and contributor to The Washington Times.
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By Michael P. Orsi
Edward Snowden should declare his patriotism in court
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