Another good jobs report last week initiated another round of applause by Republicans and handwringing by Democrats.
But don’t worry.
It’s all good.
“The Labor Department reported Friday that employers added 263,000 jobs in April, well above what analysts had forecast,” reported the New York Times.
The Times seems aghast that Trump’s economic recovery could do what Obama’s didn’t: Add jobs in a manner that ignites wage growth.
See the New York Time’s appendix article The Economy That Wasn’t Supposed to Happen for further liberal explanations about Trump’s jobs recovery.
Liberals are crazy that Trump’s economy is doing many things deemed impossible by that noted economist, jurist, and peacemaker, Barrack Hussein Obama.
What the NYTM’s piece really does, however, is expose how Democrats don’t understand the economy, history, math and journalism—amongst other things.
And like all appendix, no one is really sure what the purpose of this appendix article is. I wouldn’t say it’s rotten, but an appendectomy would be justified.
Getting past the purely partisan nature of the commentariat on both sides, there is a lot to like about the jobs report-- which is surely what the Democrats don’t like very much.
First-- and it’s a point often missed by liberals-- people have newly created jobs.
Congratulations to the 263,000 people who have new jobs. You get to pay taxes, you get to go shopping, and you’ll likely get more love from yourself and your family.
Maybe someday we can repeal Dodd-Frank banking reform and you’ll be able to buy a house.
Getting a job is usually how the American Dream begins. That’s why the jobless recovery under Obama felt so soulless. Back then, the American Dream was replaced by a rebate you got on a tax return or portable insurance that you were forced to buy in lieu of jail time.
Or, for a limited time… a free cell phone.
I think we all can agree that a new job is preferable.
Congratulations are also due to the American workers as a whole, because these jobs don’t just benefit a small group of 263,000 people.
As the jobs roll in month after month, wages are beginning to increase as the labor force tightens.
We were told for eight years that a soft labor force was the new normal and the government had to intervene in hefting the minimum wage.
An unfortunate by-product of our Keynesian trained economists that dominate government policy is that they have a bias against rising wages dictated by the marketplace. If oil prices go to $100 economists are nonplussed. If wages rise even slightly due to market pressures they want to slam on the economic brakes.
That economists at the Fed have resisted the urge to slam on the economic brakes by increasing interest rates more than they have already done, is largely the result of Trump publicly calling them out.
But now everyone’s wages are rising with little sign of inflationary effects, so there is no reason to raise rates.
You get to pay more taxes, you get to do more shopping, and maybe one day you’ll be able to buy that house you dreamed of.
And, finally, those jobs that are being created-- those wages that are going up-- are part of a larger phenomenon.
GDP growth rates, the key component of job creation, have a baseline under Trump that’s higher than under Obama. Some may dismiss 3.2 percent GDP growth in the first quarter as average, but under Obama, more often than not, we were treated to some explanation, usually involving especially cold weather—which inevitably was due to global warming—as to why first or fourth quarter GDP was much lower than expected.
Yes, Winter Storm Obama was upon us-- that great, cool, vapid, low-pressure system that often required a declaration of emergency or disaster in its wake.
There was an 18 month period from 2014 to 2015 when the economy under Obama managed to post six consecutive quarters (of 32) of higher-than two percent growth—but besides that, a few pedestrian quarterly GDP results would be followed by a poor performance or two. It was normal under Obama to learn to live with the disappointing economic results.
But now even the NYT reports:
“The U.S. economy is in a very good place,” the Fed vice chairman, Richard Clarida, said in the text of remarks that he delivered on Friday. He also said recent employment gains appeared to be sustainable and were not a sign of an overheating economy.
Hurray: So, you’ll get to pay more taxes, you’ll get to do more shopping, and maybe one day you’ll be able to buy that house you dreamed of.
And that’s what’s so good about jobs.
Or, as the Fed would say so “very good”.