Grim news continues

The U.S. unemployment rate remains at a 26-year high.  This is troubling for two reasons. One, the struggle and suffering of the unemployed (and underemployed) and the impact on the world economy.

Two, the mixed signal it gives policy makers.  I worry that the White House will think that it needs to do “more” of what it’s been doing, and dismiss any negative comments about its economic policies as a knee-jerk reaction to the unemployment figure when I, in fact, would be saying the same things if the unemployment figures had improved.  It would be a harder sell, true, but that doesn’t change the facts.

The reason?  Because I believe we would be in a better position today, with lower unemployment — no matter what the current unemployment rate — and higher growth, had the stimulus program never been initiated.  I base this on my understanding of the fundamentals of how the economy works, how businesses create value, and how labor makes itself indispensable to industry.

And none of these areas were helped or improved by the economic policies of this President.

By Sherry Jarrell