Yes, I know that unemployment is up to 7.2%.
How bad is that? Most economists consider that 4.5% is full employment.
So we are not in any Great Depression mode. We don't need a: "a down-in-the-dumps Prognosticator-in-Chief...." Cheer up BO! You"re lucky to be elected in 2008 rather than 1980 or 1932!
Larry Kudlow has a post on 7.2% unemployment:
"A series of market-price indicators suggests a bottoming economy that may gradually rise in the months ahead — believe it or not."
Captain Ed puts Friday's unemployment report in some historical context, specially the silly comparisons to 1945:
"Total employment in December 1945 was 39.111 million Americans.
Total employment in December 2008 was 138.078 million Americans.
For the mathematically challenged, the difference between 2.6 million jobs lost in 1945 and in 2008 is that the former represented a whopping increase of 6.2% in unemployment, while the latter represents a 1.89% jump.
It’s bad, but it’s not even in the same ballpark as 1945.
And it’s worth noting that the US bounced back nicely in 1946, with unemployment below 4%, and managed to do that without massive new deficit spending by the federal government.
Furthermore, it’s hardly unprecedented.
We had more than a decade from 1975 to 1986 when the average unemployment was higher as a percentage than it is now.
Three of those twelve years had unemployment higher than 8%, and two of them (1982-3) at almost 10%.
In those years, the US had over 10 million people unemployed, worse than now."
Please, let's cut out the doom and gloom! Most economies in the world would love to have 7% unemployment!
Don't get me wrong. I don't like 7.2% unemployment either. However, I understand that our economy works in cycles.
It will bounce back if we don't mess with its natural rhythms!
Here is my worry: We will do too much for this economy! We will pass a monstrous package that doesn't create jobs!
The Orange County Register has a good editorial:
"It has become increasingly clear that the presumed agent of fundamental change in the way Washington does business is firmly committed to the oldest tool in the Washington toolbox: the notion that government, using our money, can spend its way to widespread prosperity."
What should government do? Do very little!
Let the free market take care of the US economy.
Let's do some targeted tax cuts and get out of the way.
What should Pres. Obama do in his first year in office? He should keep his nose out of the US economy!
