When the monthly job numbers are released, most people focus on the unemployment rate.
On many occasions, I’ve cited that number, usually to point out that the unemployment rate is far higher than the Obama Administration promised it would be if the so-called stimulus was enacted.
That episode should be additional proof that Keynesian economics is misguided.
But that’s not the issue we should be worrying about now. Instead, our concern should be what appears to be a permanent reduction in the share of the working-age population that is employed.
As I explain in this interview for Blaze TV, our ability to produce is governed by the quality and quantity of labor and capital in the economy. Unfortunately, it appears that the Bush-Obama policies of bigger government have had a negative impact.
To build upon that interview, here are the very latest numbers from the Bureau of Labor Statistics.
To be fair, the drop you see on the chart started before Obama took office. But he can be fairly blamed for the fact that there’s been no recovery.
The moral of the story is that bigger government is not a recipe for prosperity.
The burden of government spending is too high, the tax code is too punitive, red tape is hindering entrepreneurship, and various handouts are creating a dependency culture that discourages work.
Should we be surprised that the employment-population ratio is grim?