by Frank James
Economists may be fairly united in believing that today's jobs report, with the increase of the unemployment rate to five percent from 4.7 percent, and the anemic 18,000 jobs added in December making last month a terrible, horrible, no good, very bad time for the employment part of the economy.
Some are even using the R word, saying that the economy may be in or nearing recession.
But you'd never know any of that from the press release issued this morning by the White House in response to the Labor Department's employment report:
December 2007 Marks Record 52nd Consecutive Month Of Job Growth
More Than 8.3 Million Jobs Created Since August 2003 In Longest Continuous Run Of Job Growth On Record
Today, the Bureau of Labor Statistics released new jobs figures – 18,000 jobs created in December. Since August 2003, more than 8.3 million jobs have been created, with more than 1.3 million jobs created throughout 2007. Our economy has now added jobs for 52 straight months – the longest period of uninterrupted job growth on record. The unemployment rate remains low at 5 percent. The U.S. economy benefits from a solid foundation, but we cannot take economic growth for granted and economic indicators have become increasingly mixed. President Bush will continue working with Congress to address the challenges our economy faces and help facilitate long-term economic growth, job growth, and better standards of living for all Americans.
The U.S. Economy Benefits From A Solid Foundation
Ø Real GDP grew at a strong 4.9 percent annual rate in the third quarter of 2007. The economy has now experienced six years of uninterrupted growth, averaging 2.8 percent a year since 2001.
Ø Real after-tax per capita personal income has risen by 11.7 percent – an average of more than $3,550 per person – since President Bush took office.
Ø Over the course of this Administration, productivity growth has averaged 2.6 percent per year. This growth is well above average productivity growth in the 1990s, 1980s, and 1970s.
Ø The Federal budget deficit is down to 1.2 percent of GDP (in FY07), well below the 40-year average. Economic growth contributed to the highest tax revenues on record and a $250 billion drop in the deficit over the last three years.
Ø U.S. exports in October 2007 were 13.7 percent higher than exports in October 2006.
President Bush had a previously scheduled meeting on his calendar this afternoon with Treasury Secretary Henry Paulson and Federal Reserve Board Chair Ben Bernanke to discuss continuing administration efforts to help ease the crisis in the credit markets caused by the sub-prime mortgage calamity.
After the meeting, he commented on the economy, using some of the talking points that appeared in the press release but acknowledging that there was plenty of concern to go around.
"This economy of ours is on a solid foundation. But we can't take economic growth for granted. And there are signs that cause us to be ever diligent and make sure that good policies come out of Washington.
For example, we've had 52 straight months of job creation, but job growth slowed last month. Core inflation is low, but U.S. consumers are paying more for gasoline and for food. Consumer spending is strong yet the values of many of the homes in America are beginning to decline..."
Beginning to decline? That's an understatement.
Anyway, Bush clearly wanted to communicate that he was fully aware of the economic anxiety washing over many Americans. He made clear that increased taxes were not on the table as far as he was concerned.
Bush said:
"The Congress and the president have got to work together when they come back to, one, make sure taxes remain low. If the foundation is strong yet indicators are mixed, the worse thing that Congress could do is raise taxes on the American people and American businesses."
So forget any efforts by Congress to pay for new spending by raising taxes, that's a non-starter was Bush's implied message.
Expanding oil refineries and oil exploration in the continental U.S. "in environmentally friendly ways" could help with high gas prices, he said.
He added this:
"And so when Congress comes back I look forward to working with them to deal with the economic realities of the moment and to ensure American people that we'll do everything we can to make sure we remain a prosperous country."
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Comments
I see Frank, like his mentor, Bill Neikirk, desires a recession. The U.S. media has been desiring a recession since the last one ended at the beginning of 2002.
If there is a recession and Tribune, er Zell, revenues decline, my suggestion to Sam to cut costs would be to get rid of recession cheerleaders at the Tribune first. Then we'll see if those reporters continue to be recession cheerleaders.
Posted by: John D | January 4, 2008 2:56 PM
"This economy of ours is on a solid foundation..."
This is the same guy who declared "Mission Accomplished" and touted proof of WMD stockpiles in Iraq.
Posted by: Rick/Sneads Ferry, NC | January 4, 2008 4:53 PM
JOhn D,
The tribune just raised the cost of there daily dead tree by 50%. I guess they think they will sell more papers that way, sort of like libs thinking that if taxes are raised, weconomic activity will increase.
Posted by: Terry | January 4, 2008 4:53 PM
Bush and the R word. Would that be RETARD!!!
Posted by: Bush/Cheney/Impeach/Imprison | January 4, 2008 4:55 PM
John D,
Yeah, kinda like GWB and Karl Goebbels Rove wanted a recession in 2000.
You can dress up in a tux all you want, but you still come off as Mr. Hanky.
Posted by: C.Morris | January 4, 2008 5:36 PM
Core inflation is low, but U.S. consumers are paying more for gasoline and for food. Consumer spending is strong yet the values of many of the homes in America are beginning to decline...
_____________________________
Right, inflation is low if you don't include things like food to feed your family and gas to get to work so you can buy expensive food to feed your family. Nice parsing there. But when you have to choose between clothes, rent, gas, food or say, buying health insurance (which is the mantra of every repubic here) core inflation is not as important as, say, "Do I feed the kids or go to work?"
But we all know that bu$hco and juannieed hate Americans.
Posted by: rncbs | January 4, 2008 5:52 PM
Thanks to Big Oil, Big Banks, and Big Business, corporate greed is killing this country for the shrinking middle class. As the misery levels rise, anger will build even more and it will virtually assure Barrack Obama the office of the presidency.
Look out, greedy 2% that owns America; your good times are almost over.
Posted by: Liz | January 4, 2008 6:04 PM
To John D-
Yes that's the intelligent reaction. If the news is bad, blame the messenger! That is precisely the method GWB uses in his management style. What we need more of is candid analysis for all citizens to witness, not just wishing things were different. Adults CAN HANDLE the truth.
Posted by: Thad L | January 4, 2008 6:51 PM
These people think we are all morons.
"Real after-tax per capita personal income has risen by 11.7 percent – an average of more than $3,550 per person – since President Bush took office."
So just because the billionaires are having a good time, the rest of us, whose incomes are stagnant or worse, are "averaged" so that we are all gaining 11.7 %.
Do YOU feel 12% better off than 7 years ago?
Posted by: athena | January 4, 2008 8:10 PM
athena,
Yeah, it's like if Bill Gates and a plumber are in a bar, the average income is $30 Bizzillian a year.
Posted by: C.Morris | January 4, 2008 9:24 PM
[quote]
December 2007 Marks Record 52nd Consecutive Month Of Job Growth
[/quote]
Dubya has been president for 84 months - so he has 32 months of JOB LOSSES that he and people like Geographically Challenged Dumb Dumb Little Johnnie Dyslin are ignoring because they hate reality.
[quote]
More Than 8.3 Million Jobs Created Since August 2003 In Longest Continuous Run Of Job Growth On Record
[/quote]
Bush has been president since January 2001, NOT August 2003 - so people who live in the real world know about the over 2 million jobs LOST during that time period, giving Dubya a grand total of 6.1 million jobs created in 7 years. That's over 12 MILLION LESS than Clinton created in the same number of years!
Posted by: BC | January 4, 2008 9:47 PM
Athena,
I feel 120% better than I did 7 years ago. Seven years ago, our economy was sliding into a recession. A recession that would occur 39 days after President Bush took office. The tax cuts worked to bring the country out of the recession and also after a terror attack. If this economy is toward the end of its cycle, then maybe its time for more tax cuts to keep economic growth going.
According to the libs,the economy's health is primarily a function of the gov't, then what has changed in gov't over the past year? Maybe its the democratic Congress???
Posted by: Terry | January 4, 2008 9:50 PM
Dumb Dumb BC, who is the only6 person in the world who doesn't think Cuba borders the Gulf of Mexico, again shows his lack of knowledge.
BC, unemployment began rising in 2000, BEFORE Bush became president. A recession hit the U.S. just as Bush BECAME president. IN other words, Bush inherited a recession from Bill Clinton. Then 9/11 hit and the economy took a $1 trillion hit. Unemployment rose to about the mid to upper 5s, still on the lower end of unemployment rates.
The economy has largely been growing, though, since the first quarter of 2002, with every month showing growth for 52 in a row now.
Posted by: John D | January 4, 2008 10:50 PM
"YES I'M BACK WITH MY CAPS"
THE ECONOMY IS IN THE TANK BECAUSE....GUESSS WHAT I'M GOING TO SAY....
BECAUSE S BILL 1639 DIDN'T PASS. YES THAT BORDER SECURITY, ECONOMIC OPPORTUNITY, IMMIGRATION REFORM ACT OF 2007.
NO ECONOMIC OPPORTUNITY HAPPENED WHEN THE BILL FAILED BECAUSE AMERICA WASN'T READY TO JUST SELL IT'S SOUL TO "the secretary."
SO HEAR WE SIT, AWAITING A BETTER "CONGRESSIONALCHURN" TOWARDS "OVERSIGHT"
2.4 trillion dollars in debt just to take your souls, your neighbors soul, your friend in the car with you that you never even cared where he came from, soul, HE TOOK YOUR MILITARY SOULS!
all for AN ECONOMIC OPPORTUNITY on the backs of 12 million people SITTING AND WATCHING A NEW BERLIN WALL BEING BUILT TO LOCK THEM IN. Z PEOPLE! NOT CONSTITUTIONAL.
DOES A WOMAN REGRET BEING ABLE CREATE A LIFE? IF MAN COULD WOULD HE? SATAN BILL 1639 DIDN'T PASS SO WHY ARE WE MARCHING IN IT'S DAWN STILL?
Posted by: Roger Morris | January 4, 2008 11:13 PM
Economy is not bad and it is not good. It is like getting a C in Math Class.
Passable but not great!
Posted by: Lou | January 5, 2008 2:34 AM
Roger the caps ARE A TURN OFF!!!
"Do YOU feel 12% better off than 7 years ago?"
Posted by: athena | January 4, 2008 8:10 PM
In a word NO! Vote democrat! Obama in 2008!
Posted by: Alec Baldwin | January 5, 2008 4:28 AM
The economy has largely been growing, though, since the first quarter of 2002, with every month showing growth for 52 in a row now.
Posted by: John D | January 4, 2008 10:50 PM
Revenue from that growth largely benefited the wealthy, did not extend to the middle classes.
That growth was artificially juiced through tax cuts for the wealthy which created three trillion more in the national debt.
Clinton left us with surpluses, Dubya will leave us with decades more in debt and a crumbling house of cards economy. Oh, and did I mention a $12 billion a month war? Heckuva Job, Jr.
Posted by: dt | January 5, 2008 4:31 AM