By Matthew Hay Brown
The two-year high in unemployment announced today has launched a new round of finger-pointing in Washington.
“As President Bush scrambles to respond with more of the same policies, American workers are losing their homes, seeing their incomes fall and their jobs shipped overseas, and are struggling with skyrocketing energy and health care costs,” House Speaker Nancy Pelosi said in a statement. “This morning’s jobs report confirms what most Americans already knew—President Bush’s economic policies have failed our country’s middle class.”
House Minority Leader John A. Boehner agreed that Americans “are feeling the squeeze” of rising energy, health care and housing costs. But he said that Democratic policies would only increase the damage.
“One year ago today, the 110th Congress opened with promises of a new direction and bipartisan cooperation,” the Ohio Republican said. “But over the past 12 months, the Democratic Majority has offered nothing more than a tax-and-spend, mandate-and-regulate agenda that places American families and small businesses at even greater economic risk. … At a time when American families and small businesses are struggling with financial uncertainty, this irresponsible, job-killing agenda cannot continue.”
The federal Bureau of Labor Statistics reported employment growth of 18,000 jobs in December, the lowest number since the economy lost jobs in August 2003. Unemployment grew from 4.7 to 5 percent, the highest level since November 2005.Pelosi touted Democratic efforts to raise the minimum wage, make college tuition more affordable and pass an energy bill that she said would reduce energy costs while creating jobs. President Bush is considering elements of an economic stimulus package that is likely to lean on tax cuts.
“We favor tax cuts as a measure to promote economic growth,” White House Deputy Press Secretary Tony Fratto told reporters. “We know from experience that it’s been helpful in the past. We’ve done tax cuts before, and it’s led to growth. The President is looking at the data that’s out there.”
Fratto called the economy “a mixed picture.”
“We see job growth that maybe wasn’t as fast as expectations today, but we have to remember we’re in 52 straight months of consecutive job growth. That’s the longest period of job growth in recorded history for this country, so those are positives. …
More Top Picks Best Keurig Coffee Makers
“We see core inflation that’s been largely in check, but certainly energy prices, health care and some other commodities are increasing and prices haven’t had a big rollover into core inflation, but it’s something that we’re keeping an eye on.”
Senate Majority Leder Harry Reid questioned the Bush’s competence to handle the economy.
“The same president who lectures about fiscal responsibility has a shameful history of losing American jobs, turning record surpluses into record deficits and increasing the national debt by $3 trillion,” he said. “Democrats believe it is long past time to restore fiscal discipline, stop spending billions on another country’s civil war and focus on critical needs here at home.”