Issac Bailey blog | Job market on streak not seen since Clinton-era boom. Time to stop talking down the economy?
08/01/2014 10:37 AM
08/01/2014 10:38 AM
Because of the hyper-partisan state of our national politics, for many people, bad news is bad news and the only kind that should be highlighted, while good news is also bad news, or not good enough, or should be ignored.
They’ve come to despise President Barack Obama so fiercely that they would rather talk down America than admit what the facts are clearly telling us, that after we fell into the worst economic downturn since the Great Depression after the 2008 crash we are finally seeing a real turnaround. That is especially true of many people in the Myrtle Beach-area who want to see the world through a dark lens and demand others join them in perpetual misery.
Yes, the economic turnaround took longer than anyone wanted, still is neither complete nor perfect, wage grow is slower than we’d like, and it is one of the slowest recoveries since World War II – which makes sense, given the nature of the downturn and because we had experienced nothing like it since the early 20th century. The hole was that deep. The economy was losing 800,000 jobs a month when Obama took office.
We received more proof from the Labor Department this morning that the recovery is on track and has staying power. We added another 209,000 jobs and the unemployment rate ticked up ever-so-slightly, from 6.1 percent to 6.2 percent, for the right reason – because more people re-entered the labor market.
July marked the sixth consecutive month of 200,000+ jobs created and extends the longest streak of monthly private-sector job growth ever. For the past four months, the market has created an average of 260,000 jobs a month. This news followed the GDP report from earlier this week that showed an initial reading of a strong 4 percent growth rate in the second quarter and an initial weekly jobless claims number that was less than half of what it was at the peak of our troubles a few years ago.
It means Main Street has begun to make gains and has Wall Street nervous that the Fed will accelerate its plans to pull back from the help it has been providing to what had been a too-weak economy.
Such facts will grate on the sensibilities of those wearing doom-colored glasses, but that makes them no less true. We know that optimism is an important factor in recoveries, that once expectations rise, they can lead to a positive feedback loop that leads to more investment, more business creation, more spending, higher wages and more jobs, while pessimism has the opposite effect.
That’s why so many people insisting upon clinging to the former attitude rather than adopting the latter is baffling, sad, and not good for the country.
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