Opinion / Politics

Finally, Good Economic News!

economicIn the middle of a drenching downpour, a shaft of bright light is always welcome – and we just got one.  Last week’s good economic news does not end COVID-19’s run, resolve racial tensions, or closeout a three-month downturn by lockdowns, but it does spell hope. Here is why.

As Fox News reported on June 5, “May’s unemployment report was stunning…” To understand why the numbers matter – and what they say about the future – is worth the time. In short, while one-in-five jobs were lost in pandemic lockdowns, one-in-eight jobs lost is back. See: https://www.foxbusiness.com/economy/mays-unemployment-report-was-stunning-heres-what-happened-and-why-economists-got-it-wrong.

That is not what economists thought would happen, since it means small businesses – which make up most of the US economy – are not just surviving, but reviving.  Unemployment that spiked to all-time highs was temporary – and businesses that economists predicted would close forever, are not doing so.  They are rehiring and reopening.

As the report notes, “most economists expected May’s jobs report to be a disaster, possibly even the worst on record.”  But that is not what happened.  Against the odds, US employers added 2.5 million jobs – the most jobs ever created in one month! Unemployment fell – it did not rise.

Ironically, liberal media outlets were poised for the pounce, sure May’s numbers would darken the political landscape further, after a difficult April.  CNN, for example, made April the end of the world.  Scrolling back to their reporting, they inveighed: “With much of the American economy in self-imposed shutdown … April’s colossal surge in unemployment delivered a historic blow to workers …by far the most sudden and largest decline since the government began tracking the data in 1939 … more than double the 8.7 million jobs lost during the financial crisis.” See: https://www.cnn.com/2020/05/08/economy/april-jobs-report-2020-coronavirus/index.html.

Only the cited downturns in 1939 and 2008 were structural failures, markets that crashed as a result of unbridled lending, limited oversight, failed capitalization and liquidity, not a self-imposed shutdown of an otherwise strong, healthy – even thriving – free market, one where labor and capital were moving freely, stoked by less regulation and greater faith in capitalism.

Put differently, the US economy – which boils down to hardworking Americans – was less damaged and is more resilient than academics, fancy models, and media assumed. Job growth and lower-than-expected unemployment signals faster recovery than expected.  It signals that President Trump’s support for small businesses with the Paycheck Protection Plan (PPP), run by his Small Business Administration, was on target, on time, and is working.

Like many actions taken in crisis, from preventive healthcare and vaccine acceleration to daily briefings, personal stimulus checks, support for hospitals, and retooling the private sector to build needed technologies, Trump’s PPP plan was an act of faith, focus, and leadership – no guarantee it would work.  Passage was even delayed by Nancy Pelosi’s indignant House.

Yet this program – which incentivized employers to keep and rehire good employees – appears to be working. The President – together with Senate Republicans who prioritized PPP over peripheral, unfocused, unnecessary federal spending by the House – was right.

The strength of America is not more centralized government, higher taxes, more spending and dependency, but flexible response by a nimble, can-do, resilient private sector – and when necessary, federal “bridge programs” to restart a private sector suddenly forced to shut down.

Today, the challenge is not about spending more money at the federal level but less.  It is about recognizing that the private sector is America’s strength – engine of economic growth, employment, income, investment, consumption, and quality of life.  Only with a healthy, restored, confident private sector can we regain lost ground, then pay down the federal debt.

Net-net, the latest unemployment number is just one shaft of light, but the shaft tells us something.  It tells us Americans are not laggards, lazy or looking for handouts.  We have not been lulled into dependence, thinking Nancy Pelosi’s socialist vision – more taxes, less freedom, more reliance on federal government for wellbeing – is the way of the future. Quite the reverse.

Americans want to get back to work – at every age, in every sector, across every region, with every intent to restore the American economic engine to full power. That is good economic news, likely to reflect a subterranean pool of support for economic policies this president has pursued.  To cite Churchill: This is not the end, nor even beginning of the end, but it may be the end of the beginning.  In that, find hope. Shafts of light are always welcome – with more ahead!

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The OLD Warhorse
1 year ago

Those poor “reporters” at CNN and MSNBC must have soiled themselves having to report this.
I have difficulty understanding how people can hate this country so much.

kathy
1 year ago

My concern continues to be: how do we get this message to the American people who don’t watch, read or listen to conservative news sources? So many people just believe everything they hear and see on the mainstream news/cable channels. I used to use Facebook as a way to share articles like the ones Robert Charles writes for AMAC, but I suffered censorship and finally deleted my account. I’m not on Twitter or any of the others. Talking to Democratic friends is beyond frustration. They just keep repeating the same talking points they hear on TV.
I pray for the President and his team. I pray for our country and for God to open the minds of Americans.

Joel
1 year ago

Models fail here like they do in the dome and gloom global warming models!

Bob L.
1 year ago

I take the employment numbers with a one pound box of salt as just a grain of salt will not do.
People going BACK to work are not new jobs and there is always a lot of turnover in jobs with people changing jobs that also get counted.
If there were as many new jobs and new people entering the picture as gets reported every month, no one older than 6 years old would be unemployed.
There are still a lot of people sitting on the sidelines due to the economic shutdown who need and want to go back to work or school.
The best news would be to put an end to the virus scam and go back to the NORMAL we had at the beginning of the year.
The scam and control will continue as long as testing gives the con validity to continue choking the economy and our freedoms. If there were also testing to see how many people have flu antibodies, we would still be under house arrest for that too since it sickens millions and kills 60,000 people every year.

JoanPenrod
1 year ago

So uplifting to read such optimistic news!! Thank you!!!

James Gurley
1 year ago

With very much dismay I am utterly astonished how ignorance and evil run so rampant in the political circle. The “in your face” of the house of representatives majority have exposed treason, yet no one has been punished except the American patriots. The house has constantly had meetings to not only shut down the economy but have gained the support of groups funded to create havoc and turmoil. To point the finger is an understatement as the Americans have continued voting these plagues to society back into office and my proof is the time in office thus far.

Ed J
1 year ago

Amazing how FACT will always outrun (and outshine) FAKE NEWS in the long run.

gin
1 year ago

It’s good the economy is coming back. Money isn’t evil, it’s putting money ahead of God and His ways that is evil. It’s great to see people prosper, but it would be greater to see people grateful for the blessings of a loving God who wants a relationship with us. Life here is short. Eternity is timeless. Eternity with God would be wonderful, the alternative unspeakably awful. Ask Christ to save you, now.

par
1 year ago

Nicely written article. How come the liberals at AARP can not be as objective.

RBC
1 year ago
Reply to  par

One wonders if they see the world through the same lens … many thanks! And for your support of AMAC!

Brenda Blunt
1 year ago

America is great! Americans know how to survive and WILL overcome! Trump will prevail!!

Dave
1 year ago

Democrats are too invested in America’s decline to be positive about anything.

HAL HOFFMAN
1 year ago

DOES IT TAKE A GENIUS TO FIGURE OUT THAT IF YOU PAY FOLKS 45 GRAND A YEAR TO SIT ON THEIR BUTTS, THEY ARE GOING TO WORK HARD AT KEEPING IT THAT WAY???? TIME TO PULL THAT PLUG!!!!!!!!!!!!!!!!!!!!!

par
1 year ago
Reply to  HAL HOFFMAN

Correct. It is called the 21st century norm for many.

James
1 year ago

Nothing makes democrats more angry than good economic news. I believe we will witness MAGA #2 in President Trumps second term.

Dee
1 year ago

We definitely don’t need Biden. I almost wish that VP Pence would take over. He seems calmer. he doesn’t tweet like a nut. We need calm now.
We need to settle down and get back to work, the Moms & pops businesses need help rebuilding and restocking. We need the small business.
We need the child care so folks can go back to work and not worry about their kids. Many states need help since they got HIT with the virus thru no fault of their own. We brought back all those Americans from Virus INFESTED place with the virus. All the states that had the big International airports got hit with the virus. Very smart thinking. We should have closed the airports ourselves. You chose to be out of the country, now you wait to return.
the peaceful marchers were fine but the looters should have been caught and arrested on the spot. Even citizen arrests. Now there are some businesses that might not be able to reopen. And EVERY marcher HAS to tested for the virus. in every city. The cases are mounting already.
The second wave could arrive now.

rbd
1 year ago
Reply to  Dee

VP Pence is a different personality than President Trump. I don’t think President Trump is “like a nut,” but a
man whose energy helps him to get things done. He is the man for the season. I thank God that he is the
president we need at this time in history.

Phil Hammersley
1 year ago
Reply to  Dee

Dee: Quite frankly, President Trump is the ONLY person who could have made it through all the crap the DIMMs and their media cabal have thrown at him. If someone else were president, the Marxists would find something to pelt him with but he/she/whoever would wilt like a flower!

Denise
1 year ago

There are a lot of employee that are refusing to return to work until their extra unemployment runs out. A person should never make more on unemployment than they make working. Stop giving unemployment to everyone and watch the unemployment number fall.

Stephen Russell
1 year ago

& due to riots more Inner city jobs & redo Urban centers or Leave as is, some for a Memorial to Racisim & Riots, see So Cent LA CA since 1992

carol
1 year ago

Thanks for the positive report! Nice to hear good news! Been sick of seeing all the pictures of folks kneeling to the newest Nebuchadnezzar! Wonder how the msm will spin this to make this good news look bad?

Carol Palin
1 year ago

Gee, too bad the socialists won’t be making everyone dependant upon them for everything.

Patriot Will
1 year ago

Thank goodness we have hardworking individuals who have the energy and grit to keep on doing their best. They will get us out of these terrible economic times. Our country will come back stronger and more productive than ever. President Trump understands the might of free enterprise. Pelosi and Schumer are so depraved that they want to make us, the people, weaker and weaker. They want to make us into pawns, just to satisfy their own greed for power, They are the true fascists. President Trump is our hope and chance to escape a future of destructive socialism and communism. God Bless the patriots who sincerely believe in a righteous America, an America full of kindness and respect for traditional values!

Press ONE for English
1 year ago

Let’s see… According to the numbers in the article, 1/5 of all jobs were lost as the result of the health hysteria. And now 1/8 of lost jobs have returned. 5×8=40. 1/40 of all American jobs have been reinstated. One in 40?! Happy days are here again, I guess. Put it another way, 7 of 8 people who lost their jobs due to the health scare are still on the bread line.

Meanwhile, we as a nation are spending like there’s no tomorrow, ballooning the already out of control deficit, China is maneuvering to dethrone us as the world reserve currency, approximately 50% of people who could work are happily slopping at the public trough, and it appears more likely by the day that we are going to lose the best president we have had in decades, by means fair or foul, to a bumbling idiot. And this is merely the tip of the “not good” iceberg. But hey let’s celebrate.

Quoting Peggy Lee’s famous song, “Let’s break out the booze and have a ball, if that’s all there is.”

What rubbish.

Carol Palin
1 year ago

Press one: your math is faulty. Your 1 in 40 is 0.025%. If 100 jobs were lost. And 8 regained, that is 8.0%. We are in better shape than you claim, but still have a long way to go.

Press ONE for English
1 year ago
Reply to  Carol Palin

Carol, You would be right, except you are wrong. I was referring to the jobs returned as a fraction of the entire job base not of the jobs that were lost. 1 in 5 jobs lost. 1 in 8 of the 1 in 5 is 1 in 40 of the total. I believe it makes more sense to consider the numbers in this context to avoid making things appear unrealistically good. Thank you for reading, and for responding.

Oh, and 1 in 8 is a little over 12% not 8%, and 0.025 is 2.5%. Not sayin, just sayin’.

Barbara
1 year ago

Love your Name! I recently had to call my doctor, whose phone number is connected to the hospital answering service: it took me a minute and a half just to wait for the service to finish translating everything said in English to Spanish! Press one for English!!! Is this Mexico?

James Gurley
1 year ago

As usual you have spoke “Truth” and people will be offended, yet we shall overcome or become a 3rd world country when the demons take control of this nation. God help this nation!

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