Michael van der Galien

Spinning the Jobs Report

Posted on January 9 2010 10:30 am
Michael van der Galien was born in the Dutch city of Leeuwarden in 1984. For as long as he can remember, he has been obsessed with the United States. When he was 17 years old, he started blogging - of course about America. His articles have been published at Big Hollywood, Pajamas Media, Hot Air (the GreenRoom) and Right Across The Atlantic. He's also an editor for the Dutch conservative blog, De Dagelijkse Standaard.
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It is wise to be cautious — and the RNC is certainly overstating the extent to which Obama is to blame for lingering high unemployment — but unlike Ramesh, I think a strong, jobs-full recovery is unlikely, and I think it’s fair to lay some of the blame at Obama’s feet…

There are other reasons to think that, even with moderate GDP growth, unemployment could remain at 8 or 9 percent for the rest of the year. Home prices are likely to stay flat, i.e. the asset inflation that drove consumer spending during the credit bubble isn’t there to drive it now. The stock market has rallied, but an analysis of economy-wide stock prices to corporate earnings indicates that stocks might be overvalued. I tend to think that’s the case. Additionally, the number of people dropping out of the workforce is still quite high. As James Pethokoukis noted today, a growing economy will draw these discouraged job-seekers back into the labor force, offsetting jobs created and keeping the unemployment rate elevated.

Continue reading at the Corner.

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