Unlike Ronald Reagan Obama Doesn’t Use Government Hiring To Create Jobs

Over the weekend I put on my econ hat and started digging into the jobs numbers of President Obama and the President many conservatives enshrine, President Reagan.

This video from my radio show USAprogressive shows four different St. Louis Federal Reserve line graphs I put together using data from the bureau of labor and statistics.

It turns out the trajectory of job creation under both Obama and Reagan are very similar, about a 45 degree angle, from the depths of job losses to job creation and economic expansion.

Here is the difference, when Reagan came into office the job losses were nowhere near as devastating as when Obama came into office. This means the hole was a lot deeper when President Obama took the reins.

The other statistic I found was that President Reagan’s unemployment rate drop was helped significantly by all governments, local, state and the federal also hiring. President Obama doesn’t have that luxury.

President Obama’s private sector job gains have been off set by massive layoffs in the public sector.

By Reagan’s last year of his first term is when the economy began adding jobs at a rate of 3.3 million jobs that year.

We are just beginning Obama’s last year of his first term. So let’s compare his third year.

President Obama’s economy added almost 2 million jobs in 2011. The kicker is during Reagan’s 3rd year, government employment didn’t lay off. They did under Obama, over 250 thousand people.

In 1985, Reagan reduced unemployment further with government hiring 1.8 million people. Those 2 million people spent money and caused even more growth in the private sector through increased demand.

If the public sector was hiring as it did under Reagan, unemployment may be 8% or less today, rather than 8.5%. This is why the Republicans do not want to pass the Obama jobs bill, because they know that if the country can stop the bleeding of public sector layoffs, unemployment will drop and an Obama re-election would be inevitable.

11 Replies to “Unlike Ronald Reagan Obama Doesn’t Use Government Hiring To Create Jobs”

  1. “If the public sector was hiring as it did under Reagan, unemployment may be 8% or less today…”

    but, but, but, what would be left for the Republicans to throw hate-filled tantrum-rants over?

    If every American that wanted a job had a job, the GOP would crumble under the weight of their fear-mongering obstructionism.

    I say we will succeed in spite of them.

    Obama/Biden 2012

  2. I hope enough Americans are fed up with Republican politicians only serving their party interests and not the people to vite these fuckers out of office. I’m afraid misguided loyalty and hateful brainwashing against “liberals” by jerks like Limbaugh may run so deep as to keep people from using common sense when voting – again. Let’s hope common sense can prevail!

  3. This looks like even more evidence that the GOP is willing to harm the USA and Americans in order to defeat Obama in 2012. We should vote out every single one that is willing to put his politics above his country. (Can we charge them with treason instead?)

  4. They want so badly for the president to fail that they seem to regard the millions of Americans hurt by their actions as “collateral damage” that they find acceptable. Along with re-electing Barack Obama, every do-nothing Congressional member needs to be voted out to be replaced with genuinely caring people.

  5. Brainwashed… If you define your party affiliation as either Republican or Democrat you are brain washed. To think that either party cares about voters or this country for than themselves or their friends is pure ignorance. I only wish the end of the world would happen in 2012, all the wars and financial crisis, it’s one man made disaster after another. Only the rich prosper on either side, only the Dems justify their wealth by giving middle America’s money away to the poor as an act of kindness.

    I’m not anti capitalism, I’m anti profitieering.

  6. No that’s true. He doesn’t. But he does force homosexuality on America and for that he should be impeached.

  7. The headline is incorrect as Obama has used government hiring to create jobs to a greater degree than Reagan. Reagan added 29,750 non-military federal employees per year and so far Obama has added 42,500 federal non-military employees per year. If you include the military in that then it’s a growth of 40,500 per year for Reagan and 118,500 per year for Obama.

    The source for this data is http://www.opm.gov/feddata/HistoricalTables/TotalGovernmentSince1962.asp The numbers for 2011 will be released in August.

  8. Marc probably disregarded the footnote – includes TEMPORARY jobs for the census. But if he had, he would then have complain that the President create temporary jobs. Permanent jobs are always preferable even when in the government.
    Try as you may, you just can’t have it both ways.

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