President Weighs Economic Options As Unemployment Tops 2 Year High

[ProSense]

President Weighs Economic Options As Unemployment Tops 2 Year High

President Bush met with economic advisers Friday to consider possible stimulus packages, as the Labor Department announced that low hiring in December pushed the U.S. unemployment rate to 5 percent, a two-year high.

Employers added just 18,000 jobs last month, the fewest since August 2003. The government added 31,000 jobs, but the private sector cut 13,000. Economists had expected December hiring to be much greater, and for unemployment to nudge just slightly from 4.7 to 4.8.

Many jobs were cut in the manufacturing, construction, and financial services markets, as the economy continued to cope with a housing slump and mortgage crisis, the Associated Press reported. Retail jobs also saw a decline.

The White House said the unemployment numbers were not dramatic by historical standards.

"I'm not trying to paint the uptick in the rate of unemployment with rosy colors. We'd rather not see it go up to 5 percent, but I think you have to take a step back and look at the broader picture and recognize that by historic standards that's still a relatively low rate of unemployment," Deputy Press Secretary Tony Fratto told the AP.

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In 2004, Bush bragged about the impact his tax cuts (which he raided Social Security to pay for) would have on the economy, claiming that he would create 300,000 jobs per month:

Still, when arguing for the tax cuts, the Bush administration promised they would create about 300,000 jobs every month, beginning in July 2003 -- most economists doubt last year's numbers will be revised that dramatically.

In early October, Bush was bragging about 182,000 jobs created over a two-month period:

The department said 89,000 jobs were created in August, rather than the 4,000 that it originally reported were lost. It also said 93,000 jobs were created in July instead of 68,000 it previously reported -- a total of 118,000 more jobs in the July-August period than it had earlier estimated.

Today, with the worst job numbers since 2003, only 18,000 created last month, and the spin is:

The White House said the unemployment numbers were not dramatic by historical standards.

[Adsos Letter]

1. ....

Bush is thinkin' "Let's see now...do I really make an effort to make some kind of effectual policy here...or do I hem and haw about it until the Dems come into office...hmmmmm"

"Decisions, decisions..."