The U.S. Labor Department announced that the economy created 142,000 jobs in August and that the unemployment rate came in at 4.2%, down from 4.3% the previous month. It was the 43rd. straight month of positive job growth despite the continued doom and gloom of the negative voices who put the usual spin on the job numbers. The unemployment rate over the same time period during the Trump administration was 8.4% in August 2020 and job creation was still in a negative position.
The job market is slowing to some degree because that is what the Feds wanted to take place when they raised interest rates high and fast over the last two years. It is also what the negative voices clamored for and now want to blame it on the economy. The President's inflation reduction act did more to cool inflation than the Feds mind set of having to damage the economy with high interest rates.
The guessing game continues by the negative voices and those who oppose the President's agenda and their opinions and predictions are all over the lot as to what the Feds will do next. The economic recession that began in February of 2020 on Trump's watch ended the 10 years of economic expansion that began on President Obama's watch. The U.S. economic expansion began again on Biden's watch and the negative voices of doom and gloom hate it.
The job market may be slowing a bit, but it is not due to President Biden's agenda. The Feds misguided policy of slowing the economy down and slower hiring with high interest rates to pull back on consumer and business spending is a policy for disaster and is an outdated policy to deal with inflation. Up to this point in time, on President Biden's watch, job creation has been at record levels of any President's 4 year term. And that includes the 811,000 jobs revision the Labor Department recently announced and also includes the August job numbers. The unemployment rate remains at a historical low level, consumer spending has been steady, the second quarter GDP was 3% on an annual basis, Yet, during all that time, the negative voices were talking recession and doom and gloom for the economy.
The Feds had reasons to lower the interest rates long ago, and the time was right to do so. The economy needs that assurance now since the end of the year is approaching and Trump has told House speaker Johnson to shut the government down if the GOP's demands are not met by the democrats in congress. It is just another demand by the negative voices to damage the economy and government in an election year. The ball is now in the Feds court and they have to act and lower interest rates.
This commentary written by Joe Lorio
