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For those who feel the war on terrorism
could use a little "Structural Adjustment".



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Tuesday, February 10, 2004

 
The Empire Strikes Back

The Prez's reelection hopes just hit a major snag. The dent to the economy's growth due to OPEC cuts will be bigger than the White House is admitting. Of course, trying to pass the blame off to Congress for not adopting Bush's energy policy is typical and typically misleading. Not one new drop of American oil would be in American markets for a few more years yet even if the bill had passed. Who knows, maybe Bush has a terrorist friendly scapegoat now for when he's called out for lying to the people about how many jobs he's going to create. By the way, he reiterated Monday in a report released to a lot of fanfare that he intends to create 2.6 million jobs in 2004 to bring up the working average to right around 135 million total. In order to do this, he'd actually have to create over five million jobs by the end of the year, as the average is already weighed from poorer than expected growth in November and December. The last time the economy added that many jobs was in 1941, in order to satisfy war productiion needs. Unless Bush is planning on starting World War III with his war on terrorism, he has an impossible task on his hand. What's the catch? The report released Monday has a footnote which effectively says that these numbers are based only on information available in early November. So, according to the report that the public is most likely to see or hear about, we live in a fantasy world where half a million people have been put back to work over the last two months. However, in quiet corrective statements given yesterday, the White House instead says it sees growth at about 3 percent, which means a bit over 2 million new jobs for the remainder of the year. This still is a daunting task, particularly with fuel prices looking to cut into companies' bottom lines. Economists' predict an average of 166,000 new jobs a month. which falls far short of the White House projections. That was before OPEC made their announcement of cutbacks in the oil supply. Well, maybe the administration can get their friends at Halliburton to do them a favor for once and hire an extra half million people.

Bran 3:11 PM : |



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Bloggers we like:
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blog.lukeclayton.net

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