as for whether this mediocre jobs report can be blamed in large part on sequestration, the answer is probably no. however, it's one factor among many, which is why i was expecting a lousy report. i have no idea how economists figured 200k jobs for March. they need to address flaws in their prediction models.
I say this because supply-side policy can effectively add capital to the market but the market is not short on capital, there is an excess of capital and a shortage of demand.
I would not disagree that political dysfunction is adding the uncertainty that is keeping capital on the sidelines, but I am very confident that actual policy decisions, even Keynesian policy decisions, would settle some of the uncertainty as well as boosting demand, and the capital would flow back into the economy.
I think it is ridiculous to argue that supply-side policy is necessary when there are trillions of dollars in capital out there, supply side policies would just add to the capital that is sitting on the sidelines.
The stimulus was a positive economic policy, and pretty much the last policy Obama could get through as he did NOT have a filibuster proof Senate but for a few months broken over three periods in 2009.
Obama is a Democrat, the Senate has a Democratic majority. So who's policies should move forward with, the GOP policies of the House?
It is the GOP that is making the petulant stand of my way or the highway.
The labor force participation rate has had a downward trend since 2002.the labor force participation rate continues to fall. down to 63.3% from 63.5% in feb.
It's mostly the Baby Boomers retiring. It's a long-term demographic trend, not a short-term event attributable to government policies.
On a side note, I find it hilarious that a small rise in the unemployment rate is a sign of doom, whereas any drop in the unemployment rate is mercilessly hammered as a flawed and politicized data.
Wall Street is doing very well whereas Main Street is suffering. You cannot have a labor force of 155 million with 143 million working and call that success. Nor can you have 51% of the income earning families paying for a 3.6 trillion dollar Federal Govt and expect the economy to grow, create jobs, and provide for economic security.
Supply side is the only economic policy that is viable and makes sense in a consumer driven economy. There are four components to GDP with the largest being consumer spending. Consumers need cash and get that cash when jobs are created. Things like Obamacare, massive regulations, and penalizing wealth creators isn't a prescription for economic growth.
The GOP is fighting for individual freedom, individual wealth creation, personal responsibility all principles upon which this country was built and which are proven to be successful. When you look at the budget you see an entitlement mentality with entitlements making up the lion's share of the budget. That is a prescription for failure as fewer workers are paying for more entitlement spending and a transfer of wealth from the individual to the govt. through higher taxes.
By all standards the stimulus was a complete and utter failure as the results show