The U.S. Labor Department reported the U.S. economy created 228,000 jobs in November and the unemployment rate held at 4.1%. It was the 86th straight month of positive job creation and the economy is in its 9th straight year of expansion. Some economist reported to be disappointed since the November job number fell below October's number of 261,000 jobs. Others said they see a slow down in the job numbers.
The Labor Department also reported that ten full months under the Trump administration (February thru November) the economy added an average of 174,000 jobs per month and that during the same 10 months under President Obama in 2016 the economy added an average of 187,000 jobs per month. When and if the republican controlled House and Senate agree on their tax plan and Trump signs into law don't be surprised if the economy and job creation does not meet their predictions. Precedent tell this writer that it won't. So pay little attention to what you hear about the economy from TV shows that specialize in talking about financial matters. They were wrong about both the Reagan and Bush tax cuts.
Slowly but surely we will arrive at a point as to what path the economy will take. The stock market is over priced and is being driven by the 1% who own 90% of all stocks and bonds. It could very well become a market that declines 40% or more as it did during the Bush Presidency. The big shots are urging the feds to increase interest rates and they are led by Trump himself. The economy does not act too kindly to that prospect, especially over the long term.
This writer would feel more comfortable if a democrat was in the White House leading the country because of precedent.
This commentary written by Joe Lorio
