The Democrats' Job Killing Policies Kill Jobs

The latest jobs report is solid evidence that Obama’s big government, high tax, Washington-centered, bureaucratic, politician-dominated system is going to kill jobs and extend the current economic problems far longer than what is normal for a recession.

None of this should come as a surprise. Job-killing policies kill jobs. It is that simple and direct.

In my new book To Save America: Stopping Obama’s Secular-Socialist Machine (#5 last week and #2 next Sunday on the New York Times bestseller list) and in a keynote speech to the Detroit Chamber of Commerce last week,  I outline the concept that 2+2=4 is the most important political and governmental slogan of the next 25 years.

2+2=4 matters because it reminds us that facts and basic principles are real and cannot be avoided even by the most articulate orators and demagogues.

The numbers from last week’s report on job creation were truly sobering.

In April, the private sector added 218,000 jobs.

In May, the private sector added only 41,000 jobs. That is exactly the opposite pattern from a normal economic recovery.

Normally, in the depths of a severe recession, the recovery accelerates month by month as confidence recovers, businesses invest and consumers come back into the market.

The shocking numbers for May (an over 80% decline in new private-sector job creation) combined with the fallout from the European fiscal crisis and the economic costs of the BP-Obama oil disaster in the Gulf will further slow down the economy. 

These indicators suggest that there is a real danger of a second downward leg in the recession.

The fact is that of 431,000 nonfarm jobs added in May, 412,000 are temporary government jobs for the 2010 census, whose layoff in the fall will send unemployment rates up.  Furthermore, the unemployment rate came down from 9.9% to 9.7% only because 322,000 Americans dropped out of the job market and quit looking for work.

Amazingly, the President actually adopted the position that these dismal economic numbers were encouraging, saying “The economy’s getting stronger by the day,” and a sign his policies are working. 

The President is either being willfully dishonest or is ideologically blind to reality, seeing no difference between stable private-sector jobs and temporary government jobs.

To be clear, it will take 292,000 new jobs added every month until 2015 to get back to 5% unemployment.  For the economy to remain flat, it would need to add 125,000 jobs a month. 

Considering that these census jobs are all temporary, the data suggests that the economy became weaker in May, not stronger, as the President claimed.

This blindness to reality is dangerous because it is a sign the Democrats will continue to follow job-killing policies.

(If you are wondering how 41,000 private sector jobs could have been created when 412,000 of the 431,000 jobs added in May were federal government jobs (for a difference of 19,000), it is because 22,000 state and local government jobs were lost.  For a full breakdown, click here).

Jobs Here, Jobs Now, Jobs First

We clearly need a new course away from the job-killing policies of President Obama and the Democrats.

American Solutions COO Dan Varroney has been working with members of our small-business task force on an aggressive plan to jump start private-sector job creation in the United States.  The plan combines five key tax cuts with American energy development and a real plan to balance the budget. 

We call it Jobs Here, Jobs Now, Jobs First because, as Dan puts it, “It’s time Congress acts to create jobs, not more government.”

A few weeks ago, Dan made the exciting announcement that Congressmen Jim Jordan (R-Ohio) and Jason Chaffetz (R-Utah) have introduced legislation based on the tax cuts in our Jobs First plan. They call it the Economic Freedom Act and it includes:

• Reducing the payroll tax by half for 2010 to provide immediate liquidity for companies and employees;

• Eliminating the capital gains tax to encourage investment in new companies;

• Reducing the corporate tax rate to 12.5%, to make us competitive globally;

• Permanently eliminating the death tax so small businesses and family farms can continue creating jobs for future generations;

• Providing immediate business expensing so American workers have the best equipment and are the most productive.

We are encouraging you to contact your member of Congress today and urge them to co-sponsor the Economic Freedom Act (H.R. 5029).

The Obama stimulus has clearly failed.  It’s time to get back to what we know works for job creation.  2+2=4


P.S. Callista and I are in Krakow, Warsaw, and Rome this week premiering Nine Days that Changed the World [].  We will report on our trip next week. 

P.P.S. We are running Father’s Day specials at on autographed books and DVDs, including autographed copies of Gettysburg for just $19.95. Visit the Store at

Newt’s Quick Links

• The continuing expansion of federal power comes at the expense of individual freedom. In a piece posted at Renewing American Leadership, Congressman Rob Bishop examines the founder’s concept of federalism as it relates to freedom and how we can recapture it today. You can read the piece here

• The Americano covers how Hispanic evangelicals are launching a national voter registration campaign. Click here

• The next American Solutions Real Jobs Summit is in St. Louis, Mo., on June 23.  Click here to RSVP.