Not Bad. Not Bad at All

Great economic news. The unemployment rate dropped to 4.6 percent last month while wages increased by 4 percent.

The nation’s unemployment rate fell to 4.6 percent last month, down from 4.7 in August, and average wages rose by 4 percent over the previous year — the best performance for both measures in five years.

The monthly Labor Department report released yesterday revealed that 51,000 new jobs were reported last month, a disappointing figure, but job gains were stronger than reported earlier for the previous year and a half.

“The economy is actually stronger than these employment numbers suggest,” said Bernard Baumohl, executive director of the Economic Outlook Group, a Princeton, N.J., economic-advisory firm. The figures were mixed and elicited widely varying reactions from financial markets and analysts.

On top of this, the Dow had a fantastic week with record high closings three days in a row. I can hear the nutroots now: it’s a Rovian plot!

Update: More great news. The budget deficit has dropped to $250 Billion:

The federal budget estimate for the fiscal year just completed dropped to $250 billion, congressional estimators said Friday, as the economy continues to fuel impressive tax revenues.

The Congressional Budget Office’s latest estimate is $10 billion below CBO predictions issued in August and well below a July White House prediction of $296 billion.

The improving deficit picture _ Bush predicted a $423 billion deficit in his February budget _ has been driven by better-than-expected tax receipts, especially from corporate profits, CBO said.

This is something the Democrats just don’t understand. They consistently ask “how are we going to pay for Bush’ s tax cuts?” If they understood anything about economics, they’d know that lower tax rates pay for themselves because they bring in more revenue.

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32 Comments

  1. John F Not Kerry October 7, 2006
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