GOP Uses Job Data to Attack Stimulus
By JOHN D. MCKINNON
WASHINGTON -- The rise in unemployment last month muddied President Barack Obama's case that his stimulus program is lifting the economy, and Republicans seized on Friday's jobs report with an eye toward the 2010 midterm elections.
Many indicators suggest the economy is in fact, on the mend, including data showing the pace of job losses slowing. But the number that draws the most headlines -- the jobless rate -- worsened in August, rising to 9.7% from 9.4% in July. And Republicans said that showed the limits of the Democrats' stimulus plan.
"The administration said its bloated 'stimulus' would create millions of jobs and keep the unemployment rate from going above 8%," said House Republican Leader John Boehner of Ohio. "Instead, unemployment has now soared to nearly 10%, millions of jobs have disappeared, and massive new debt has been needlessly piled on future generations."
Even as the August report showed a deceleration of monthly job losses, Republicans have stepped up their attacks over the economy, and especially unemployment. They contend that Democrats have taken their eye off the economy -- a major issue for voters -- as they try to push through long-term initiatives on health care and climate change.
Coupled with last month's projections of higher long-term federal budget deficits, the monthly unemployment spike could complicate these Democratic efforts. Republican critics have argued that both measures would increase job-market weakness by imposing new costs on many employers. And they argue that even if stimulus has ameliorated the recession's impact, it isn't worth the long-term fiscal cost.
The White House held a series of events this week to trumpet the effects of its $787 billion stimulus package. Speaking by satellite link to workers at a California solar-panel plant, Vice President Joe Biden on Friday said the jobs report showed the U.S. economy is "making progress." He cited economists' estimates that the stimulus package has created or saved between 500,000 and one million jobs so far.
White House press secretary Robert Gibbs said the administration's recovery plan "is in many ways doing more than we thought it would do in terms of cushioning the blow and in cushioning the downturn of an economic recession...creating an economic environment for the lessening of job loss."
The Republican congressional campaign committee has been running ads in select Democratic districts hitting on the jobs issue. Recent GOP ads have targeted Reps. Tom Perriello and Rick Boucher of Virginia, Ike Skelton of Missouri and Vic Snyder of Arizona. On Friday, the committee sent a news release to media in 54 districts where the GOP views Democratic incumbents as vulnerable, asking: "Where are the jobs?"
Republicans believe governor's races in hard-hit Michigan and Ohio could also turn on the employment situation next year.
The Republicans' radio address for the Labor Day weekend is slated to focus on the potential dangers to the job market posed by a plan sponsored by Democrats to overhaul the country's health-care system.
Democrats are also highlighting other measures adopted with the aim of helping workers, such as a minimum-wage increase and greater workplace, health and other protections. "Our nation's workers have been battered by stagnant wages and an indifferent Bush administration," said Rep. George Miller of California, chairman of the House Education and Labor Committee. "Last year, Americans demanded a change and we are working every day to bring that change."
It remains unclear whether a potential job-market turnaround would occur quickly enough to satisfy voters. "Unless things change dramatically, job losses will continue and the unemployment rate will keep rising for a significant period of time after the formal end of the recession," said Chad Stone, chief economist for the Center on Budget and Policy Priorities, a progressive think tank.
John Sweeney, president of the AFL-CIO labor federation, said Friday's report showed the need for "further investments" by the government to create jobs. A number of advocacy groups are calling for more jobless benefits.
Write to John D. McKinnon at john.mckinnon@wsj.com
Printed in The Wall Street Journal, page A2
1 comment:
The unemployment rate isn't the best indicator of how well the economy is recovering. Since it is a survey, people can say whatever they want. Also, perhaps the improving economy has encouraged more people to start looking for jobs.
A better number is initial unemployment and continuing unemployment claims. Wall Street eyes this number that is released every Thursday.
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