When the U.S. economy is the envy of the world
12/08/14 04:58PM By Steve Benen – maddowblog
Right. In the public discourse, there’s often a temptation to compare the current economic recovery to other recoveries that followed modern downturns. There’s one glaring problem with this: the global crash in 2008 was the worst crisis the world has seen since the Great Depression. Comparing it to more routine, cyclical downturns is like comparing a twisted ankle to getting hit by a bus — they both hurt, but the scope and scale of the damage is qualitatively different.
It’s smarter, then, to compare our economic recovery against other countries who dealt with similar circumstances. And on this front, as President Obama was eager to remind Americans in his weekly address
, we’re the envy of the world:
“America, we still have a lot of work to do together. But we do have real, tangible evidence of our progress. 10.9 million new jobs. 10 million more Americans with health insurance. Manufacturing has grown. Our deficits have shrunk. Our dependence on foreign oil is down. Clean energy is up. More young Americans are graduating from high school and earning college degrees than ever before. Over the last four years, this country has put more people back to work than Europe, Japan, and every advanced economy combined.”
That last point is no small detail. In the aftermath of the crash, advanced economies around the globe rushed to respond, with many adopting competing solutions. Many chose the kind of austerity measures Republicans hoped to impose on Americans.
Fortunately for those who want to see the U.S. succeed, Republicans weren’t in a position of power in 2009.
As a result, as Rachel noted
on the show on Friday, American growth is “outperforming other economies.” Indeed, one of the more striking aspects of the recent upswing in the domestic economy is that “the U.S. remains a standout
as the rest of the world struggles.”
Don’t look now, US economy booming!
12/05/14 08:59PM maddowblog
Rachel Maddow reports on the litany of positive economic indicators, including significant job growth, lower gas prices, higher wages, and a lower number of uninsured, and the difficulty Republicans are having formulating a response.
Republican Message Sinks In Even as Obama Economy Gains Strength
Dec 7, 2014 5:32 AM PT By Victoria Stilwell and Jonathan Allen – bloomberg
To hear Republicans tell it, President Barack Obama is the leader of a lackluster economy — and Americans believe them.
The only problem: That view is outdated.
Last week’s Labor Department report showed the economy added 321,000 jobs in November, marking 10 consecutive months in which the number has topped 200,000. Average hourly earnings rose 0.4 percent from a month earlier, the most since June of last year. At the same time, most Americans — 52 percent in a Gallup poll — said the economy was “getting worse” in November, echoing the Republican message.
“They’ve done a better job of saying, ‘The economy is not working as well as it should have and elect us and we’ll do a better job,’” said John Silvia, the chief economist at Wells Fargo Securities LLC in Charlotte, North Carolina.
For years, House Speaker John Boehner, an Ohio Republican, repeated a simple mantra to needle Obama on the economy: “Where are the jobs?” To the dismay of some Democrats, the White House has avoided declaring victory in Washington’s rhetorical war over the economy because the slow pace of growth has frustrated those who haven’t felt the benefits of the recovery.
The jobs report “will have some impact on the public perception of the economy, as it should,” White House Press Secretary Josh Earnest said Dec. 5. “We certainly welcome those signs of strength. We want to make sure that — that working folks are experiencing those kinds of benefits, too.”
For more: http://www.bloomberg.com/news/2014-12-07/republican-message-sinks-in-even-as-obama-economy-gains-strength.html
Biggest Payroll Gain in Almost Three Years Boosts U.S. Wages
Dec 5, 2014 6:27 AM PT By Victoria Stilwell – bloomberg
A broad-based November hiring surge ranging from factories to offices and retailers powered the U.S. economy to create the largest number of jobs in almost three years, triggering long-awaited wage gains.
The 321,000 advance in payrolls exceeded the most optimistic projection in a Bloomberg survey of economists and followed a 243,000 gain in October that was stronger than previously reported, figures from the Labor Department showed today in Washington. The jobless rate held at a six-year low of 5.8 percent. Average hourly earnings rose 0.4 percent, the most since June of last year.
Persistent job growth that’s generating income growth and stoking demand increases the likelihood of employment opportunities for even more Americans. Treasury yields rose as traders bet the improvement in the labor market will help assure Federal Reserve policy makers that the economy is strong enough to withstand an increase in borrowing costs next year.
“You’ve got this really nice dynamic going on in that there’s more jobs growth, more spending, stronger GDP growth, which in turn means more jobs being created,” said Nariman Behravesh, chief economist for IHS Inc. in Lexington, Massachusetts, and the second-best forecaster of payroll gains over the last two years, according to data compiled by Bloomberg. “It’s just a very good cycle to be in right now for the United States.”
For more: http://www.bloomberg.com/news/2014-12-05/payrolls-in-u-s-surge-by-most-since-early-2012-as-wages-pick-up.html
Factories Keep Humming in U.S. Even Amid Global Slowing: Economy
Dec 1, 2014 9:08 AM PT By Victoria Stilwell – bloomberg
Manufacturing growth in the U.S. barely skipped a beat in November, holding near the strongest pace in three years, as the world’s largest economy rose above a global slowdown.
The Institute for Supply Management’s factory index was little changed at 58.7 last month, the second-strongest level since April 2011, compared with 59 in October, the Tempe, Arizona-based group reported today. Readings greater than 50 indicate expansion.
Orders over the past four months have been the strongest in a decade as growing demand from American clients makes up for any letdown among foreign customers. Figures yesterday showing retailers struggled to lure shoppers during the first weekend of the holiday season raise concern that the pace of growth will be difficult to sustain heading into 2015.
“Whatever is happening abroad, this sector seems to be shrugging it off,” said Guy Berger, a U.S. economist at RBS Securities Inc. in Stamford, Connecticut, who projected a reading of 58.5. “There’s still a fair amount of momentum in the U.S. manufacturing sector.”
American producers keep powering ahead at the same time their global competitors slow. Manufacturing in Germany, France and Italy unexpectedly contracted last month, according to purchasing managers’ gauges. An index of Chinese manufacturing fell as mandatory plant shutdowns during the Asia-Pacific Economic Cooperation forum aggravated a pullback in the economy.
For more: http://www.bloomberg.com/news/2014-12-01/manufacturing-in-u-s-expanded-more-than-projected-in-november.html
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Find Out What President Obama is Doing to Improve Our Economy: http://www.whitehouse.gov/economy