America Great again unemployment at lowest level since 1973
America Great again unemployment at lowest level since 1973. In 1973 I was 12 years old living in Southern Indiana. I could buy my father a pack of Cool filters (yes before liberal freakout) I bought my dad’s cigarettes of $.60 pack that meant I got to keep $.40 which would buy 2 or 3 candy bars. The average annual income was $12,900. The Alaskan oil pipeline bill passed and Watergate hearings began. In 1973 Led Zeppelin began their 9th American tour.
An important measure of layoffs hit its lowest mark since the Nixon administration, a sign of increasing momentum in the labor market and a possible hint at the extent of job growth for the full month of July. He will not get credit for it from the mainstream press but Trump has made America Great again.
According to the Wall Street Journal the number of U.S. workers filing initial applications for jobless benefits fell by 26,000 to a seasonally adjusted 255,000 in the week ended July 18, the Labor Department said Thursday, a 41-year low. The week coincides with the period the Labor Department conducts surveys to assess the strength of the labor market for the month of July.
And when adjusting for population growth, jobless claims have been at or near the lowest levels on records back to the 1960s for the past year. The labor force is more than 70% larger today than it was in the early 1970s, when claims were last this low. This makes today’s unemployment figures even more impressive and proves President Trump is making America Great again.
The recent decline in claims has coincided with strongest pace of hiring since the late 1990s. Low levels of layoffs typically match with increasing payrolls, which is why claims data suggest July hiring could exceed June’s 223,000 increase when the next jobs report is released in early August. Barclays economists project that employers will have added 250,000 jobs to payrolls next month.
The better labor-market numbers come alongside other reports showing homes sales are at their highest level of the expansion and that consumers stepped up their spending this spring after a weak winter. It appears that growth has been re-energized after economy contracted at 0.2% pace in the first quarter. The Commerce Department will release its first estimate of second-quarter economic output next week. Many economists expect a growth rate of better than 2%.
The unemployment rate last month was 5.3%. That was the lowest reading of the current expansion, but still above the 4.7% rate recorded in the month before the recession began.
No action on interest rates is expected next week. Fed officials have indicated they could start lifting rates as early as September, if the economy continues to show signs of steady growth. An robust July jobs report would only strengthen that case.
With budget talks going on in Congress Republicans need to say the course and pass tax cuts. History proves that tax cuts make America Great. The Democrats will pull out the same ammunition running ads telling old people there medicare is going to be cut, school children are not going to be able to eat, etc. etc. But the time for tax cuts is now. The time to make America Great again is now.