The Media is working overtime trying to get the American People to respond to the Obama Administration’s words. “We’re about to come back,” “We’ve bottomed out”, “Our backs are no longer against the wall,” “We’ve got Green Shoots,”…There Are No Green Shoots!…And The Job Losses Keep Coming!

Here’s a chart along with last weeks weaker than expected employment report

The chart shows unemployment during every recession since WWII. For every recession there is a falling employment line on the left and a dramatic uptick on the right side forming a U shape as jobs are gained. Some recessions were deeper than others and some lasted longer.

It’s important to note that “something” happened in each recession that caused a bottom to the left downward trend and shot employment dramatically upward on the right. That “something” in each case involved putting money in the hands of the people through tax cuts and incentives to businesses that led to hiring in the private sector, putting people back to work, and led to more purchases as well as increased tax revenues.

The recession that we are currently in is shown on the chart as a Red Line and it is in a “Direct Nose Dive” with no “U” shaped upturn in sight. it’s a Bright Red Line all by itself. So with stimulus and tarp falling flat like we knew it would, what magic trick does Obama and administration have to jump start the economy and put people back to work? Nothing!…There isn’t one Obama or Democrat Party policy that is going to advance economic and jobs growth. The CARS program might sell a few automobiles, but a lot of folks with “clunkers” are not going to qualify for vehicle loans the way things are. That “Red Line” aint going no where but further down…

Right now, Prudent Employers are applying a combination of strategies that include laying workers off while changing the status of others from full time to part time. This is changing the standard work week from 40 hours per week to 33 hours per week. So not only is unemployment continuing to increase but our weekly productivity and earning power is decreasing.

If you are a smart business owner your focus right now is just to stay in business. You are not hiring workers. You are looking over the political and economic landscape and thinking “What happens to me and my business with the passage of this cap and trade fiasco. What will this nationized health care do to me if it passes?” These two huge unknowns are paralyzing business. Businesses can’t make plans when they have no idea what the economic climate is going to be and everything is so up in the air.

Before any uptick in employment ever takes place smart employers will first increase the work hours of their existing employment before hiring any additional help.

So look for that “Red Chart Line” to keep on going down, down, down for quite a while…