Morning Bell: Unemployment Goes Up, Obama Declares Victory

Mike Brownfield / June 03, 2011

Unemployment in the United States increased again last month to 9.1 percent, with the Obama economy adding only 54,000 jobs—the fewest in eight months. Today’s terrible jobs report is much worse than expected. Economists surveyed by Dow Jones Newswires had grimly predicted 160,000 new jobs and an unemployment rate of 8.9 percent earlier this week.

But despite the dismal news that 13.9 million Americans remain unemployed, President Barack Obama is holding a victory party today at a Chrysler plant in Toledo, Ohio, trumpeting the only jobs he can manage to create—those bought and paid for directly by the U.S. taxpayer.

The President’s celebration comes amid word that Fiat SpA will pay $500 million for the U.S. government’s remaining 6 percent stake in Chrysler Group LLC, taking majority control of the company. For the Obama Administration, that’s news enough to signify a corporate turnaround following its bailout of Chrysler and GM in 2009, a bright spot in a day where millions are out of work. But what the President likely won’t mention is the continuing costs of the auto bailout that have fallen on the backs of U.S. taxpayers. (more…)