Trouble Signs Point To Continuing Struggles
For The Obama Economy
SOARING PRICES, A SLUMPING HOUSING MARKET AND PERSISTENTLY HIGH
UNEMPLOYMENT ARE DRAGGING DOWN ECONOMIC GROWTH
The Latest “Jobs Report Has More Bad News Than Good News.” (Jeff Cox, “Jobs Report Has More Bad News Than Good News,” CNBC’s “Net Net” Blog, 5/6/11)
• The Real Unemployment Rate Rose To 15.9 Percent. “Another measure of unemployment rose as
well: the so-called ‘real’ unemployment rate, which rose to 15.9 percent, up two-tenths from the
prior month.” (Jeff Cox, “Jobs Report Has More Bad News Than Good News,” CNBC’s “Net Net” Blog, 5/6/11)
• “Job Creation Barely Kept Up With The Expansion Of The Labor Force.” “In particular, the
household survey, which is an actual head count, suggested that the job creation barely kept up with
the expansion of the labor force.” (Jeff Cox, “Jobs Report Has More Bad News Than Good News,” CNBC’s “Net Net” Blog, 5/6/11)
• The “Meager” Job Gains Can’t Make A Dent In The Ranks Of The Unemployed. “The U.S. economy
has now created jobs for seven straight months, but the gains have been too meager to make much of dent in the pool of 13.7 million Americans out of work.” (“Job Creation Much Better Than Expected; Rate Hits 9%,” Reuters, 5/6/11)
Jobless Claims Surge To Eight-Month High In “Sign Of The Economy's Struggle In Creating Jobs.” “New
claims for jobless benefits unexpectedly surged last week to their highest level since last summer, according to data giving another sign of the economy's struggle in creating jobs.” (Jeff Bater and Luca Di Leo, “Jobless Claims Surge,” The Wall Street Journal, 5/5/11)
• Unemployment Claims Jumped By 43,000 To 474,000 Claims. “Initial unemployment claims
increased by 43,000 to a seasonally adjusted 474,000 in the week ended April 30, the Labor
Department said Thursday in its weekly report.” (Jeff Bater and Luca Di Leo, “Jobless Claims Surge,” The Wall Street Journal, 5/5/11)
“Gas Prices Are Surging And Are Approaching The 2008 Record High Of $4.11 A Gallon.” (Dennis Jacobe, “Americans' Economic Confidence Declines Further,” Gallup, 4/26/11)
• “Food Prices Are Also Surging, And Jobs Remain A Major Economic Problem.” (Dennis Jacobe,
“Americans' Economic Confidence Declines Further,” Gallup, 4/26/11)
• Bloomberg Consumer Comfort Index: “Consumer Confidence Dropped Last Week To The Lowest Level In More Than A Month As Rising Fuel Costs Squeezed American Household
Budgets.” (Bob Willis, “Consumer Comfort In U.S. Falls On Surging Gas Prices,” Bloomberg, 5/5/11)
“Inflation Is Back, With Higher Prices For Food And Fuel Hammering American Consumers, And This
Time It Really Hurts.” (Neil Irwin, “Inflation Inflicting Pain, As Wages Fail To Keep Pace With Price Hikes,” The Washington Post, 4/4/11)
• Inflation Could Make The Weak Economy Even Weaker. “Today, raising interest rates might make
a weak economy even weaker, stifling what meager growth there has been in wages.” (Neil Irwin, “Inflation Inflicting Pain, As Wages Fail To Keep Pace With Price Hikes,” The Washington Post, 4/4/11)
• And Make The “Massive Budget Deficits” Even More Expensive. “Moreover, higher interest would
make the nation’s massive budget deficits even more expensive to finance, taking an additional toll
on the economy.” (Neil Irwin, “Inflation Inflicting Pain, As Wages Fail To Keep Pace With Price Hikes,” The Washington Post, 4/4/11)
“Home Values Posted The Largest Decline In The First Quarter Since Late 2008, Prompting Many
Economists To Push Back Their Estimates Of When The Housing Market Will Hit A Bottom.” (Nick
Timiraos, “Home Market Takes A Tumble,” The Wall Street Journal, 5/9/11)
NFIB: “Hiring By Small Businesses Almost Ground To A Halt In April” “Hiring by small businesses
almost ground to a halt in April after making gains in February and March, a survey published on Thursday showed, adding to expectations that Friday's national employment report will likely be weak. The National Federation of Independent Business said its survey of 1,985 businesses found that "twice as many owners released employees as increased employment" and the average number of net new jobs slipped to 0.04 from 0.17 per firm.” (Corbett B. Daly, “Small Business Job Creation Stalls In April: NFIB,” Reuters, 5/5/11)
“[U].S. Productivity Slowed In The First Quarter As The Economic Recovery Stumbled And Labor
Costs Started To Rise Again.” (Jeff Bater and Luca Di Leo, “Jobless Claims Surge,” The Wall Street Journal, 5/5/11)
• “Economic Growth Braked Sharply In The First Quarter As Higher Food And Gasoline Prices
Dampened Consumer Spending And Sent Inflation Rising At Its Fastest Pace In 2-1/2 Years.”
(Lucia Mutikani, “Economic Growth Slows, Inflation Surges,” Reuters, 4/28/11)
AMERICANS’ CONFIDENCE IN THE ECONOMY, AND IN OBAMA’S ABILITY TO MANAGE
IT, ARE AT ALL TIME LOWS
“Gallup's Economic Confidence Index Dropped To -39 In The Week Ending April 24 -- A New Weekly Low For 2011.” (Dennis Jacobe, “Americans' Economic Confidence Declines Further,” Gallup, 4/26/11)
• 70 Percent Of Americans Think The Country Is On The Wrong Track. (New York Times/CBS News Poll, 1224A, MoE 3%, 4/15-20/11)
• “Nearly Half Of Americans Rated Current Economic Conditions ‘Poor’ During The Week Ending
April 24 -- The Highest Level Of Negativity On This Measure So Far This Year.” (Dennis Jacobe,
“Americans' Economic Confidence Declines Further,” Gallup, 4/26/11)
Source: Research Republican National Committee www.gop.com
