Incomes Rise

President Bush's tax cuts just might be working to stimulate the economy. Incomes rose by .3 percent and we had a .5 percent increase in spending. Also, analyst are expecting a 220,ooo gain in new jobs. President Bush so far has done a solid job with the economy since he got into office. You have to take in the fact the he inherited a recession and 9/11 happened. I have one quesion about this article, if jobs are increasing, why did unemployment claims go up in this report also?

1 comment:

Dr. Tufte said...

What does this have to do with ManEc?

It actually is normal for both employment and unemployment to go up. The reason is that population (and the labor force) are both getting bigger. So, what is going on is that a bigger population is being divided into two pieces that keep getting bigger too. The reason we use the unemployment rate rather than the total number of unemployed is because the former can always be spun in a bad way. It would be interesting to see how often "unemployment" was mentioned by the media when Bush wasn't President.