Wednesday, August 11, 2010

Barack Obama - #2028 - Unemployment - Economy - Kudlow: Panic Setting In at White House over Economy - Hot Air

The predicted Republican tsunami in the midterms has prompted some to wonder whether Barack Obama can do what Bill Clinton did after the 1994 Republican sweep — move back to the center for his own political survival. Larry Kudlow doesn’t sound optimistic, and instead sees the White House moving leftward in panic at the failing economy and falling polls. And Kudlow says there’s good reason for panic: The bottom line? Panic over this stalled economy may be setting in. The unemployment rate is hanging stubbornly at 9.5 percent and economic growth looks to be slipping to only 2 to 3 percent. In order to get unemployment down significantly, the economy has to grow by at least 4 percent.

Inside July’s jobs report, small-business household employment dropped by 159,000 jobs — a very bad sign. In the three months to April, this survey produced 417,000 new jobs. In the three months to July, it fell by 151,000. At the same time, private payrolls in the corporate survey rose by only 71,000 in July, compared with an expected gain of 100,000. In the three months to April, payrolls gained by 154,000. Over the past three months, payrolls have increased only 51,000. They need to grow at a better-than 200,000 monthly pace in order to reduce joblessness.  Read more......

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