Something to Think About
"What do you believe?" Hear David Mielke review the recent talk delivered by President Obama in Indiana lauding the strength of the economy and trying to rebut what he called "myths" spread about slow growth and mediocre incomes. Soon-after, the Labor Department reported that the economy created only 38,000 new jobs in May, the worst monthly performance since 2010. Who do you believe about the strength of the economy, the President or the Bureau of Labor Statistics? Is it time, or time long ago, for the President to work with Congress to work on legislation to spur the economy and to stop the flow of regulations from all branches of the administration that is stifling the economy? During this segment he looks at the related issues:
- Factors leading to the small May jobs number.
- Mixed signs between the unemployment rate versus the labor participation rate (and where it stands historically).
- He notes the ongoing challenge for those still in the labor force the number working part-time who would prefer to be working full-time, and where that number is heading.
- He cites a recent Wall St. Journal survey regarding economist’s forecasts about job growth versus what has happened the past three months.
- The economy growth rate since the ‘Great Recession’ is compared historically along with recent quarterly numbers.
- He looks at how wages are rising, but how workers on average have lost wages since 2008, adjusted for inflation.
- Labor productivity, is then reviewed.
Dr. Mielke then asks:
Is the economy in good shape as the President has stated? Has the impact of new regulations, whether it has been from the EPA regulating the power and oil and gas industries, the Labor Department setting new overtime standards, the impact of Obamacare or the Dodd Frank regulations of the financial markets had an impact of the growth of the economy? The housing market has improved with home prices rising 20% along with new housing starts and home sales, but is that due as much to ongoing historically low interest rates which reflect a slow growth economy continuing to need monetary stimulus? Is there still time in President Obama's last term to work with Congress to pass legislation to spur the economy?
In particular, the House has shown a willingness to consider legislation, for example, reducing the corporate tax rate to improve the economy.
Is it far more likely however, to have a continuation of rhetoric and spin that the economy is doing great? What do you believe?
What do you think? Something to think about.
Please send any comments, ideas and suggestions about the show to our web site at the MichiganBusinessNetwork.com.
We want to know: “How can we provide more value to you to help you and your business succeed?” Have a great week!
Listen below for the full segment!
For more knowledge, news, and insights visit: