As we mentioned last Friday, put us down as "realists" concerning last month's jobs report. In other words, we are realistic not pessimistic.
Yes, we like the job creation or the new 212,000 private-sector jobs. However, we have a lot of work ahead of us before we start calling this any kind of a recovery.
First, the 8.5% unemployment rate last month most likely reflects the fact that more and more Americans have given up looking for a job. Did you hear about the participation rate?
More important, we are not creating enough jobs. We need to create over 300,000 jobs monthly just to keep up a recovery.
"At that rate, the economy would pick up about 4 million jobs annually; 8 million jobs were lost during the recession."
Moreover, the U.S. economy isn’t immune to a relapse. Europe’s debt crisis remains a ticking time bomb, along with the prospect of higher energy prices if U.S.-Iran tensions accelerate.
Employment hits also will result from the Pentagon’s plans to reduce the size of the military and as troops return from Iraq and Afghanistan.
Four years into the worst housing slump in decades, this remains a drag on the U.S. economy."
Beyond that, there is the political reality that the federal government is broken. We do not have presidential leadership. No one is in charge, in other words.
Pres BO has never put any serious plans on the table, whether it's entitlement reform or deficit control or even telling the Senate Democrats to pass a budget. (The Senate Dems have not passed a budget in 3 years)
We desperately need leadership and "we ain't got any"!
Check out our conversation with Mario Yngerto:
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Tags: Another word on the jobs report and the US economy To share or post to your site, click on "Post Link". Please mention / link to the My View by Silvio Canto, Jr. Thanks!