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February 16, 2015 


Job Growth in 2014 


President Barack Obama takes full credit for the job growth in 2014. Democrats 
on the Internet relentlessly push these growth rates with typically goofy 
superlatives like "highest ever" or "highest growth rate in decades." 

So, what did Obama and the Democrats do in 2013 and 2014 that led to the growth 
we saw last year? 

Well, Obama refused to renegotiate with Republicans on any unemployment or 
budget reforms. 

 
<http://r20.rs6.net/tn.jsp?f=001faJ02ZCy1NhYmFjuQ-dA4X6oo84kIju2TKK9D54AH_vghytRaT2XLBTg3qC0o4XNbgF_0AC5xYpc84vZwQ3n_H_dKcxNQw6Zas2RQPG3YwfRh0TjwU1hlOY3Mv7nqB_4IKiffBgMrmlgNBY2SiMCgzdtKuhiAlImM-RD0ukqIW87jatbpHIbaA==&c=603jIUm9yeViyv_VjIdmYG5i5Df4VNFBVAVNqBdP090GvZt_ZyAF1A==&ch=8wrSAfD-2XDb23ZNswLVCodw9vEUbiSP9_yn1w7CD0JQxuz8wYajLw==>
 As 2013 ended, we heard Democrats complaining that stingy Republicans were 
letting federal government extensions of unemployment compensation (which had 
been re-extended many times) lapse altogether. Obama predicted disaster. The 
Keynesian economists who circle the Democratic Party like moths to a candle 
held to a simple prophecy: because of a hit to "aggregate demand," unemployment 
would increase. 

Instead, in 2014 employment bounced back. 

In a droll quasi-opinion piece, "President Costanza's Jobs Boom 
<http://r20.rs6.net/tn.jsp?f=001faJ02ZCy1NhYmFjuQ-dA4X6oo84kIju2TKK9D54AH_vghytRaT2XLBTg3qC0o4XNIXQoOqJm_uf03hJ7ExyKEXqJXRXVXNybTLTKX8rYjQK2xt_805HTdaZ_HfXSzy8d2Q707v3KIfX2_JaaWtMHwJ0GtIkX3wWQYNyBpFr41VDmduNgS4fz2Pko9HXx6wiL90m3bQXHJUJxoP6jxuRXiaQZJm-A_E2lwSSHunU0Cms=&c=603jIUm9yeViyv_VjIdmYG5i5Df4VNFBVAVNqBdP090GvZt_ZyAF1A==&ch=8wrSAfD-2XDb23ZNswLVCodw9vEUbiSP9_yn1w7CD0JQxuz8wYajLw==>
 ," the Wall Street Journal reports that "job growth in 2014 was roughly 25 
percent higher than any post-2009 year. Joblessness plunged to 5.6 percent from 
6.7 percent. Net job creation averaged 246,000 a month." 

Citing a National Bureau of Economic Research study 
<http://r20.rs6.net/tn.jsp?f=001faJ02ZCy1NhYmFjuQ-dA4X6oo84kIju2TKK9D54AH_vghytRaT2XLBTg3qC0o4XNn2GXMH6GdqVdf-iRvFgFKLwOcB6my0A9WcsZOYw0fH8J1y3l-bZ8L9gzuMAfhjshbRYid_-qZmWw3cSSYi-EZcQOh14G4PZ5ulARhzzGMG8dqGK2SkdVcLejStvt1mjL&c=603jIUm9yeViyv_VjIdmYG5i5Df4VNFBVAVNqBdP090GvZt_ZyAF1A==&ch=8wrSAfD-2XDb23ZNswLVCodw9vEUbiSP9_yn1w7CD0JQxuz8wYajLw==>
  by economists Marcus Hagedorn, Iourii Manovskii and Kurt Mitman, which 
treated the abrupt policy change as a "natural experiment," the Journal reveled 
in the knowledge that the increase in incentives from lapsed benefits led 
unemployed workers to (gasp!) seek jobs. 

And they found them. Granted, many of the new jobs are not as good as their 
pre-bust jobs. But they are jobs, which is better than nothing. 

So when your big-government promoting friends attribute 2014's job growth to 
Democratic policies, ask which policies, precisely. And ask why Obama's 
predictions of 2013 for disaster in 2014 didn't pan out. 

This is Common Sense. I'm Paul Jacob. 

Comment on this episode 
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Today


On Feb. 16, 1878, the Bland-Allison Act, which provided for a return to the 
minting of silver coins, became U.S. law. Today, the value of American money is 
secured only by public faith in the stability of the government, but during the 
19th Century, money was backed by actual deposits of silver and gold. 


Thought


  
<http://thisiscommonsense.com/wp-content/uploads/2012/03/grover-cleveland-portrait.jpg>
 The people of the United States are entitled to a sound and stable currency 
and to money recognized as such on every exchange and in every market of the 
world. 
— Grover Cleveland 


Video


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Common Sense is sponsored by Think Freely Media, a 501(c)3 nonprofit 
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