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
O 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.
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O 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.
O 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.
O 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.
O 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.”