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Even though job growth slowed in August with 315,000 jobs added compared to the more than 500,000 added in July, according to some economists, the number indicates underlying strength in the U.S. economy. These numbers were released after Federal Reserve Chairman Jerome Powell’s comments at the Jackson Hole Economic Symposium warning of “some pain ahead” as he tries to beat back inflation. Straight Arrow News contributor David Pakman sees rosy indicators and a solid economy, even if many Americans don’t feel it:
This might not be what you’ve been thinking for the last several months but we objectively have a very solid economy right now. And anybody who knows me knows that I don’t play partisan games with the economy. I know that Democrats and Republicans love to take credit for any positive accomplishment in the economy when their guy is in office and they love to blame for any negative result in the economy when it is the other party that controls the White House.
The truth is, many of these things have very little to do with the president, at least in a direct sense. And right now, by every objective measure, the economy is quite solid. Now, if it doesn’t feel that way to Americans, it doesn’t matter and I’m going to get to that in a moment. And in fact, that doesn’t feel that way to many Americans. But let’s look at the different indicators.
We are essentially at full employment. The last report was 3.5% unemployment, with wages up half a percent in July, and more than 500,000 jobs created in July when only 250,000 jobs were expected. That’s extraordinary. That’s very, very solid. But what about prices? What about gas prices? What about inflation? Well, the numbers are looking better and better. They’re flat inflation numbers in July, which reduces inflation year over year by about half a point. So inflation is coming down. We had more than 60 days of consecutive gas price declines. Very welcome for people who depend on vehicles to commute, who do a lot of driving for whom gas is a significant part of the monthly budget.
That’s all very, very good. You look at consumer demand, extraordinarily high, you look at companies with the supply chain issues, the much-discussed supply chain issues. Part of what that means is consumers are buying so much stuff that it’s hard to keep products in stock. That’s not the sign of a weak economy.
