Unemployment is tied to deficit spending and debt.

[Carl21014]

Kennedy/Johnson borrowed 6% of what they spent on non-SS spending, and unemployment was an average of 5.5% under Kennedy and 3.8% under Johnson. An obvious downward trend to reward fiscal responsibility.

Nixon/Ford increased borrowing to 14% on non-SS spending and drove the 3.8% unemployment rate they inherited to 7.7 % when they left office.


Year Avg

1973 4.9
1974 5.6
1975 8.5
1976 7.7

Carter borrowed 13% of what he spent. The fiscal situation was unchanged and so was the resulting unemployment rate.

1977 7.1
1978 6.1
1979 5.8
1980 7.1

Along comes Reagan spending like a drunken sailor running up as much debt as he can, he borrowed 25% of what he spent on non-SS spending. Followed by Bush I who borrowed 28% of what he spent. Unemployment went way up at the beginning of Reagan when he spent the most and trended down after Congress passed the deficit reduction act of 1984. Unemployment trended back up when Bush I actually borrowed more than Reagan.

1981 7.6
1982 9.7
1983 9.6
1984 7.5
1985 7.2
1986 7.0
1987 6.2
1988 5.5
1989 5.3
1990 5.6
1991 6.8
1992 7.5

Clinton borrowed 6% of what he spent primarily in the early years. He constantly borrowed less until he was in surplus and unemployment constantly trended down.

1993 6.9
1994 6.1
1995 5.6
1996 5.4
1997 4.9
1998 4.5
1999 4.2
2000 4.0

Bush borrowed 23% of what he spent through 2002 and look we are trending up.

2001 4.7
2002 5.8

Bush's projected spending is 32% borrowed in 2003. So if the trend holds true unemployent is going to continue to trend up and this short blip is unsustainable. In fact the 03' average is already higher than 02', so the increase in borrowing has already continued the upward trend in unemployment.

Far from the excuses provided by fiscally irresponsible Republican's, it wasn't a bubble that burst. It was the National piggy bank that Bush took a fucking hammer to, and as a result higher unemployment is a certainty.

[La_Serpiente]

1. THe DNC should send a pamphlet of this to every household

in America. I didn't know about this until now.

[Don_G]

2. It Makes Sense

A high rate of debt reduces the available money supply so business is forced to compete with the government to borrow the same money. Businesses can't expand profitably and has to cut costs.