Say Anything Blog

Despite the massive housing slowdown, the jobs picture has not taken a hit.  From money.cnn.com:

NEW YORK (CNNMoney.com)—Job growth jumped and unemployment dipped unexpectedly in March, the government reported Friday, signs the labor market is holding up better than economists had thought.

Employers added 180,000 jobs to payrolls last month, the Labor Department reported, up from 113,000 in February, which was also revised higher. Economists surveyed by Briefing.com had forecast a gain of 135,000 while Reuters’ survey showed a consensus for 120,000.

The unemployment rate dipped to 4.4 percent - the lowest since October - from 4.5 percent in February. Economists had bet the rate would creep back up to 4.6 percent. October and March are the only two months since May 2001 that unemployment has been this low. The unemployment rate for college graduates is down to 1.8 percent.

“I think this is really encouraging. It shows that employers were in a hiring mode,” said Rich Yamarone, director of economic research at Argus Research. “We’re not going to have blistering job growth. But the nation is (essentially) at full employment.”

But perhaps the most interesting part is that all of the new jobs growth was obviously by Walmart and evil corporations that pay below the new Democrat desired minimum wage, so one would expect that wages continue to decline and the decline is even worse when inflation is factored in:

Average hourly wages rose 0.3 percent to $17.22, in line with forecasts and down from the 0.4 percent increase posted in February.

That left wages up 4.0 percent over the last 12 months, meaning typical hourly workers are seeing their paychecks grow faster than prices. A separate Labor Department reading shows a 2.4 percent increase in prices in the 12 months ending in February.

Ooops. 

The problem that the MSM and the Democrats have is that the objective numbers tell a starkly different story that contradicts their class warfare agenda.  Unemployment is at 4.4%.  Wage growth is at 4% while inflation is at 2.4%.  And the economic and jobs numbers are constantly being revised upwards after the initial assessments underestimate every measure.  Tax revenues are up on lower marginal tax rates.

This completely vindicates every single Bush economic policy and the tax cuts.  The economy is performing superbly, so instead of using objective numbers like Kerry tried to do in 2004 to tell the story of a miserable economy, they turn to subjective stories about annecdotal evidence of individuals who have financial problems.  And they love to mix in people that have health problems at the same time so that they can A. discredit the tax cuts that they opposed B. push for minimum wages to rise (which will stop these gains, drop employment levels, and based on the numbers show is completely unnecessary) C. push for nationalized healthcare and D. avoid the real economic crisis that keeps worsening--social security.

Tax cuts, regulation reductions, and having a government that has encouraged business as opposed to “defended worker rights” has led to better wages, lower unemployment, and far more jobs than the French model that Democrats keep pushing for. 

Amazing that a few scandals and the Iraq War would lead the American people to ignore economic policies that work simply to send a message that they are not happy with foreign policy of scandal.  If the current tax cuts expire, expect that this situation will turn around dramatically and that tax revenues will decline.