New Unemployment Claims Surge – Double Dip Recession?

By Rod Pennington

Business people hate uncertainty. With everyday something new being discovered about the implications of the sweeping health care reform and financial reforms rammed through by the Democrats, the private sector is not hiring. In fact, they are still trimming. This week, new applications for unemployment insurance rose to their highest level since February.

While analysts had expected a drop; first-time claims for jobless benefits edged up to a seasonally adjusted 484,000 for the week.
This, along with a series of other bad economic reports, has many on Wall Street concerned about a dreaded “Double Dip” recession. There is also grumblings about the way the Obama Administration’s policies may have actually prolonged the down turn. Recently a Washington Examiner article: Time to admit Obamanomics has failed has the blogosphere buzzing.

Unlike previous administrations which used cut taxes and suspended regulations to encourage job creation, Obama has done the exact opposite. The results have been predicable to everyone except a liberal Democrat.  By focusing on health care reform and new financial regulations instead of boosting the economy we are now in the longest recession since World War II and there is no end in sight.

With an election only 80 days away, this is very bad news for any incumbent and particularly bad for the Democrats. The voters will likely be in a “throw the bums out” mood.

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Posted by Rod Pennington on Aug 12 2010. Filed under Business & Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry