An Era Of Diminished Expectations
The Bureau of Labor Statistics reported that the United States economy had a net gain of 117,000 jobs, and upwardly revised job reports for May and June. The headline unemployment rate dropped by a tenth to 9.1%. The New York Times front page headline states that US Posts Solid Job Gains Amid Fear. It's story has the more accurate headline US Posts Stronger Job Gains Amid Fear.
Today the talk will be how things are not as bad they seemed. This is the Era of Diminished Expectations. While certainly a +117k jobs number in July is better than the May and June numbers, it is simply not good enough. Indeed, it is a sign, in my estimation of continued economic weakness. But because our expectations have been diminished, a number that would have been worrisome in May, now is cause for relief. This is bad for policy. It leads to government doing nothing about the jobs situation. It is bad politically for the President because people do not vote today on his reelection, or even this November. The President will come out today at 11 and tout this number. Sure, he'll say we have to do better, but he will say we are on the right track. We aren't. More. . .
|< But Other Than That, How Did You Like The Play? | The Argument On GOP Obstruction >|