Merry Christmas: Geithner Says No Job Growth Until Spring
Which sort of puts all the liberal jubilation over the .2% drop in the unemployment rate in November in perspective. That month the rate went down, but total unemployment went up .3%. The .2% drop in the unemployment rate was only caused by people leaving the job market entirely due to an inability to find a job.
WASHINGTON (Reuters) – Treasury Secretary Timothy Geithner said on Wednesday that the economy was recovering, but it may be some months yet before jobs are being created instead of lost.
“Most economists would say that, by the spring, we’ll have positive job growth,” Geithner said in an interview on ABC’s “Good Morning America,” conceding that it is unlikely there was any job growth in December.
We may, in fact, see some recovery by spring. The CBO said, way back in February, that we’d probably see recovery by the end of this year. The question is, what happens when the bill comes due for all this “stimulus” spending? What happens when the bill comes due for TARP? And the auto bailouts?
The answer is that we’re either going to have to slash spending (bloody unlikely given this Congres) or raise taxes significantly.
That coupled with the tax hikes already in the pipe for (potentially) this health care bill, (potentially) cap and trade and (potentially) the end of the Bush tax cuts and we could be heading for a nice, nasty double-dip recession.
And by “could be” I mean we absolutely are under this current political leadership.



