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The Politics of the Jobs Report

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The White House is breathing easier this morning. The Bureau of Labor Statistics reports the unemployment rate dropped to 7.8 percent -- the first time it's been under 8 percent in 43 months.

In political terms, headlines are everything -- and most major media are leading with the drop in the unemployment rate.

Look more closely, though, and the picture is murkier. According to the separate payroll survey undertaken by the BLS, just 114,000 new jobs were added in September. At least 125,000 are needed per month just to keep up with population growth. Yet August's job number was revised upward to 142,000, and July's to 181,000.

In other words, we're still crawling out of the deep crater we fell into in 2008 and 2009. The percent of the working-age population now working or actively looking for work is higher than it was, but still near a 30-year low.

But at least we're crawling out.

Romney says we're not doing well enough, and he's right. But the prescriptions he's offering -- more tax cuts for the rich and for big companies -- won't do anything except enlarge the budget deficit. And the cuts he proposes in public investments like education and infrastructure, and safety nets like Medicare and Medicaid, will take money out of the pockets of people who not only desperately need it but whose spending is necessary to keep the tepid recovery going.

Romney promises if elected the economy will create 12 million new jobs in his first term. If we were back in a normal economy, that number wouldn't be hard to reach. Bill Clinton presided over an economy that generated 22 million new jobs in eight years -- and that was more than a decade ago when the economy and working-age population were smaller than now.

Both Obama and Romney assume the recovery will continue, even at a slow pace, and that we'll be back to normal at some point. But I'm not at all sure. "Normal" is what got us into this mess in the first place. The concentration of income and wealth at the top has robbed the vast middle class of the purchasing power it needs to generate a full recovery -- something that was masked by borrowing against rising home values, but can no longer be denied. Unless or until this structural problem is dealt with, we won't be back to normal. 

 

http://robertreich.org/

Robert Reich, former U.S. Secretary of Labor and Professor of Public Policy at the University of California at Berkeley, has a new film, "Inequality for All," to be released September 27. He blogs at www.robertreich.org.

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Yes, Robert, this jobs report is truly pathetic.&n... by Bayard Waterbury on Saturday, Oct 6, 2012 at 2:01:02 PM
Personally, I think that the unemployed of this na... by J. Dexter Smith on Saturday, Oct 6, 2012 at 3:06:53 PM
In addition, you must have watched a different deb... by J. Dexter Smith on Saturday, Oct 6, 2012 at 3:08:55 PM
'Mr. Tweak It' will just be much more stealthy abo... by 911TRUTH on Sunday, Oct 7, 2012 at 2:10:49 AM
Many Americans-like my sons, ages 21 and 29 have g... by Deborah Dills on Saturday, Oct 6, 2012 at 9:59:59 PM
The first is a Human Investment Tax Credit program... by Mark Goldes on Saturday, Oct 6, 2012 at 11:54:56 PM
KEEPING IT THOUGHTFULLY HONEST: The unemployment r... by Angel Perea on Sunday, Oct 7, 2012 at 12:28:56 AM
The President is asking us to look deeply at every... by Berry Lee on Sunday, Oct 7, 2012 at 10:17:37 AM
" The Current Populatio... by acomfort acomfort on Monday, Oct 8, 2012 at 6:48:15 PM