The U.S. Labor Department reported the economy added 275,000 jobs in February and the unemployment rate came in at 3.9%, it was 3.7% in January. It was the 37th straight month of positive job growth and the unemployment rate has now been in the 3% range for the past 25 straight months, the longest string in that range since the 1950's. Some of the pundits noted that the jobs report demonstrated the resilience of the job market but failed to understand that the resilience of the job market has been steady for the past 37 months and still counting.
The U.S. economy, job creation and the low unemployment numbers have been constant over time despite the 11 interest rate hikes by the Federal Reserve which was to slow the economy, raise the unemployment rate and reduce wage demands. It was an unnecessary intervention of the old school of economic thought to address inflation. It did not work because the real cause of inflation was the business community's failure to TIMELY bring the nations "supply chain" up to date to handle the consumers spending demands. The business community knew that the COVID legislation passed was to put money in the consumers pocket to spend on goods because consumer spending is 70% of the economy. So, the business community knew the consumer would be spending. They did not care because all the economic reports tells us the business community did well during COVID.
The sad part is that the Federal Reserve can still bring the economy down if they keep on the same misguided path. It is time the Feds start reducing interest rates. The business community has to step up also making sure the supply chain can continue to handle customers demand TIMELY without raising prices and creating a new line of inflation. Their financial reports show they have the capabilities to do so.
The President's policies guided the nation out of COVID and the Trump economic recession that lost 2.7 million jobs. The economy is stable and so is lower unemployment. Inflation is at 3% and falling over all. The nations GDP has done well under the President's administration so far and better than it did under the Trump administration. Now it is time for the Feds. and the business community to step up and do their part for the nation and it's people. There are no excuses.
This commentary written by Joe Lorio
