Tags: Ryan | jobs | economy | leadership

Paul Ryan: Obama's 'Failed Leadership' Yields Dismal Jobs Growth, Weak Economy

Friday, 07 Sep 2012 11:58 AM

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A weak labor market and lackluster economic recovery are the products of poor policies put into place by President Barack Obama, GOP vice presidential nominee Paul Ryan told CNBC.

The economy added a net 96,000 nonfarm payrolls in August, well below market forecasts for a gain of around 125,000.

“If borrowing and spending and regulating and taxing was the secret to economic success, we would be entering a golden age along with Greece,” Ryan said.

Editor's Note: You Owe It to Yourself to Know What Obama and Bernanke Are Hiding From Americans

“It’s not, it doesn’t work. We need sound money, low tax rates, fiscal discipline, regulatory certainty and we need to stop this notion of a government-driven economy.”

The unemployment rate was at 8.1 percent in August and has not dipped below the 8 percent mark since Obama took office, and Ryan pointed out the president said earlier in his administration that his $800 billion stimulus measures would take the rate down to around 6 percent.

“This is not even close to what recovery looks like,” he told CNBC.

“This is not what President Obama promised. I would argue this is the result of failed leadership in Washington.”

The August jobs report sparked talk the Federal Reserve will step in and stimulate the economy with monetary stimulus tools, likely through a third round of quantitative easing, under which the
Fed buys bonds such as Treasury holdings or mortgage-backed securities from banks, pumping the financial system full of liquidity to drive down interest rates and spur recovery.

Under such a policy, the dollar weakens and stock prices rise, as do hard assets like gold.

The Fed has twice resorted to quantitative easing since 2008, and critics have said past intervention hasn’t really created jobs and growth they were designed to do, adding the move is merely printing money out of thin air and plants the seeds for inflation down the road.

Fiscal discipline, lower taxes and less regulation are what the country needs to enjoy lasting recovery, not monetary stimulus, Ryan said.

“Our monetary policy has been trying to serve as a substitute for really bad fiscal policy.”

Fed officials have said they cannot rule out stimulating the economy, and the August jobs report cemented such sentiments for many market observers.

“In recent months, the Fed appears to have been closely weighing whether or not to take additional steps to provide additional stimulus, but has seemingly been lacking consensus within the committee on whether or not such steps are warranted at this point,” said Jim Baird, chief investment strategist at Plante Moran Financial Advisors, according to CNNMoney.

“Today’s disappointing report certainly increased the odds that the Fed will take action when it meets next week.”

The Federal Reserve holds its next monetary policy meeting on Sept. 12 and 13.

Editor's Note: You Owe It to Yourself to Know What Obama and Bernanke Are Hiding From Americans

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