The US economy added more jobs than forecast in January, and wage growth rose at its fastest pace since the recession, according to a report from the Bureau of Labor Statistics on Friday.
Nonfarm payrolls increased by 200,000, beating the median of Bloomberg’s poll that had forecast 180,000 net new jobs.
The unemployment rate remained at a 17-year low of 4.1%.
Who deserves credit for the booming economy? This is not a petty argument. How voters answer the question could well determine whether Democrats retake the House of Representatives come November.
Trump and Obama (and their admirers) are slugging it out, both claiming that it is their policies that have led to the ongoing economic expansion, steady job growth and higher stock prices.
Happily for President Trump, the pros agree with him. A recent survey of economists suggest it is President Trump, and not Obama, who should be taking a bow.
Trump’s election sparked an upturn in business confidence and investment. Spending “on capital goods accelerated sharply over the first three quarters of last year,” which will inevitably “spur productivity gains and lead to wage hikes, creating a virtuous circle complete with rising consumer confidence and spending.”
Even so, “Democrats have done an excellent job of trashing Trump’s policies, issuing hysterical alarms over the supposed dangers of deregulation (toxic water, foul air!) and vilifying the GOP tax bill.”:
Imagine the nation polling negative on a tax cut for an estimated 90 percent of the workers. That takes genius.
Democrats are terrified that the tax cuts will be a pleasant surprise to those who believed House Minority Leader Nancy Pelosi (D-Calif.) when she called the bill Armageddon, and when Senate Minority Leader Chuck Schumer (D-N.Y.) declared it a “kick in the gut to the middle class.”
They are even more terrified of the bonuses and raises being handed out by employers large and small, who credit the tax bill for those unexpected benefits. Democrats are trying to convince voters that those $1,000 bonuses and pay hikes are “crumbs” as multi-millionaire Nancy Pelosi recently said.
Maybe $1,000 is “pathetic” to Pelosi, but for a great many Americans, it is a big and welcome windfall.