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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Rik
1 month ago

In Socialism/Communism there is NO MIDDLE CLASS! … And if there is no middle class then there are NO SMALL BUSINESSES! So the real backbone of Capitalism is small businesses! And in seeing small businesses getting looted and burned in at least 90 major cities across the country, these economic numbers were surprising! What was disgusting was watching the faces of Liberal Democrats not rejoicing because they hate President Trump so much, they would destroy America’s economy if that meant he could not win re-election! Yet, Jackass Biden calls for needing a “President” like him to “unify” the country! “Socialists”… Read more »

Jack
1 month ago

Our country got a huge ray of hope in November of 2016 and He just keeps shining brighter and brighter every time the Democrats and their Socialist media try to claim doom and gloom. Every hard working decent civilized American should get down on there knees and thank the Good Lord for our being fortunate to have President Donald J. Trump as our President. I can’t even imagine what shape or what Our country would look like under Killary Clinton Rule. It’s a no brainer for 2020.
Four More Years of positive growth for America and Americans.

Drue
1 month ago

I always wanted to work and provide for my family. There is a sense of self-worth when one is gainfully employed. Work is good for the soul. Capitalism is good for our country.

Denise
1 month 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.

carol
1 month 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?

Michael
1 month ago

let’s see the Democrats have been able to get anything else to work for him you know the racism was probably one of their last things and since it was a closed casket ceremony was George Ford really killed just asking is all. But most notably what are they going to try to do next I got to come up with something drastic the Democrats now are protecting antifa who destroyed most of the small businesses and large businesses in this country during their quote little riot spray they went on oh I mean I’m sorry they called it a… Read more »

JOSEPHINE POOLEY
1 month ago

LOVE this news! Praise the Lord!

HAL HOFFMAN
1 month 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!!!!!!!!!!!!!!!!!!!!!

Patriot Will
1 month 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.… Read more »

gin
1 month 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.

Kyle and Ryan Rodriguez
1 month ago

Your article was well done, simple to read, and incredibly accurate. Good job!!

Nancy L Wells
1 month ago

Wonderful encouraging article, thank you

James
1 month ago

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

Carol Palin
1 month ago

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

Dave
1 month ago

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

Brenda Blunt
1 month ago

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

Ed J
1 month ago

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

par
1 month ago

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

Stephen Russell
1 month 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

The OLD Warhorse
1 month 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.

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