ane Sawyer in an interview last January, “The purpose of a politician is to get re-elected.” A bothersome statement coming from a president…but insightful. With the campaigning for the mid-term elections in play, it’s foreseeable that the August jobs report could be used politically not economically. Washington and the press suggest the report demonstrates a turn around. A closer look suggests otherwise.The August unsuccessful numbers were the third month in a row. This would suggest that government spending and control over the credit markets are failing to meet the goal of job creation. From the report: 54,000 job losses this past month. An unemployment rate at 9.5%. The recovery strategies are not creating enough new jobs to decrease the ranks of the 14.9 million unemployed. (Possibly political, the report did not include the involuntary part time workers of 8.9 million.) One in seven people are unable to find a full time job. So how is the private sector doing?
For profit businesses added 67,000 jobs for an overall labor force expansion of 550,000 since May. Average hourly wages increasing .3% in August. Manufacturing jobs receded in August, yet, since January a successful sector. Construction and healthcare continue to expand.
A number of pundits suggest a double dip recession. The August report points to something other than recovery. The August numbers, put into the perspective of an 18 month trend show that continued slow and low growth may continue. With the failure of previous stimulus spending, politicians doing their job “to get re-elected” will pull out a few tricks for votes. Some will divert attention from the economy, some will promote little jolts like cash for clunkers and home buyer tax credits – short term small impacts that the past 12 months show did not help.
It appears government spending does not have the positive impact on unemployment as we would hope. Ten years ago the United States was the top industrialized nation for employment. Now it is the worse. Will the political messaging change this fall to divert attention away from the reality of the economic reports?
PUBLIUS
3 comments:
Wow neat! This is a really great site! I am wondering if anyone else has come across something
exactly the same in the past? Keep up the great work!
Thanks. Greatly appreciate it. Any topics you care for me to address? Anything you'd like to submit? Feel free to post in your local paper. I do and I usually get some fun responses...mostly nuts. But folks in the neighborhood are appreciative.
Publius
Chris ::: need to see more posts::: dad
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