Friday, August 05, 2005


Check out this alarmist headline from the New York Times,

"Strong Job Growth in July Sparks Fears of Higher Interest Rates"

The headline is laugh-out-loud funny. Even when we have a great economy the New York Times finds a way to hook the reader with a scary proposition. The NYTimes would never run such a headline during the hey day of the high-flying Clinton years, an economy that was actually marked by an illusory internet bubble.

But when you read the article you see what a great economy this is - shame on the mainstream media for not doing a better job of informing the American people that we are living in a great economy that is "firing on all cylinders right now".

Of course, it is not the job of the New York Times or any other media outlet to do the cheerleading for the incumbent presidential administration (a newspaper should not reveal a bias by either either puffing up or playing down economic news). So, an even bigger Bronx cheer goes to President Bush and the Republican party for not proudly trumpeting its economic success.

The American economy added 207,000 jobs in July, the government reported today, as retailers, hospitals and restaurants hired thousands of new employees to keep up with rising demand. The strong performance, which beat economists' expectations of 180,000 jobs, was broad based and confirmed the robust expansion seen in many positive reports released recently on consumer demand, industrial production and home sales. So far this year, the economy has added 1.3 million jobs. By comparison, businesses created 2.2 million jobs for all of 2004.

The unemployment rate stayed unchanged at 5 percent, as expected. There is often a disparity between changes in the jobless rate and job growth because the figures are based on two related but different government surveys of households and businesses. Economists said the employment report provided another indication that consumer spending and business investing are feeding a brisk economic expansion that is picking up speed in the second half of the year.

"We are seeing very strong consumer demand in the last two months, and the business sector is picking up," said Stephen Stanley, chief economist at RBS Greenwich. "It feels like the economy is firing on all cylinders right now."

Strong Job Growth in July Sparks Fears of Higher Interest Rates - New York Times


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