Skip Navigation
Derek Thompson

Derek Thompson - Derek Thompson is a senior editor at The Atlantic, where he oversees business coverage for the website.
More

He is a visiting research fellow at the Committee for a Responsible Federal Budget at the New America Foundation. Derek has also written for Slate, BusinessWeek, and the Daily Beast. He has appeared as a guest on radio and television networks, including NPR, the BBC, CNBC, and MSNBC.

4 Reasons We Aren't Creating Jobs (#4: Blame Obama)

By Derek Thompson
Jul 7 2010, 9:31 AM ET Comment

FiveThirtyEight finds four reasons for the unacceptable lingering of unacceptably high employment almost a year after economic production turned positive: (1) unused capacity; (2) lower hours/week; (3) rising productivity; (4) uncertainties in the economy.

Read the whole thing for the graphs and analysis. Here let's focus on the last, most controversial reason. Critics of the administration charge that Obama's pro-reform agenda is roiling the already-turbulent economy and scaring employers from taking risks on new loans and new employees. On the other hand, the White House would respond that businesses are hesitant to hire because consumers are hesitant to buy their goods and services. The first group says the government is doing too much. The second group says the government is doing too little.

And then there's the administration itself, which apparently believes both things: that they need to stimulate quickly so that they can stop stimulating, quickly. How admirably nuanced and confusing! It's like Kenyes meets Kafka. Paul Krugman is hating:

I was on Good Morning America this not-so-good morning, doing what I could. But I was struck by something that George Stephanopoulos said: he claimed to have been speaking to an administration official who asserted that what we need to get businesses investing is for business to know that the government has stopped -- presumably, that means no new spending, no new regulation, whatever.

PK calls the White House's reasoning "shocking" and wrong. I agree, but as somebody who's never owned a business, I'm not prepared to comment conclusively on the mindset of all America's business owners. At the very least, the Obama team is doing a poor job of selling their economic policies if they're begging the G20 to continue pro-growth stimulus while whispering to Good Morning America that ongoing government stimulus is an obstacle to growth.


Presented by

More at The Atlantic

Buying a Piece of America: Why Chinese Shoppers Love U.S. Brands Why Chinese Shoppers Love American Brands
The Brash Hypocrisy of Lanny Davis This Man Represents Everything Wrong in Washington
How the Global Middle Class Can Save the American Middle Class How the Global Middle Class Can Save America's Middle Class
The Revenge of the Rust Belt: How the Midwest Got Its Groove Back The Revenge of the Rust Belt
The Right-Wing Ideologue's Guide to Obama's Teenage Pot Smoking How to Spin Obama's Teenage Pot Smoking

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register.
blog comments powered by Disqus

Just In

View All Correspondents

The Biggest Story in Photos

Where in the World? Part 3: A Google Earth Puzzle

May 25, 2012

Subscribe Now

SAVE 59%! 10 issues JUST $2.45 PER COPY

Facebook

Newsletters

Sign up to receive our free newsletters

(sample)

(sample)

(sample)

(sample)

(sample)

(sample)