Why Friday's Jobs Report Meant Nothing for the Election
The White House trotted out a statement from Alan Krueger, the president's chairman of the Council of Economic Advisers, who continued to repeat that more work remains to be done and that the latest report suggested that the U.S. economy continues to show signs of improvement after the worst downturn since the Great Depression.
Because the unemployment rate ticked up in the latest report, Romney's statement focused on that. He said the 7.9% rate was a sad reminder that the economy is at a virtual standstill.
Third-quarter gross domestic product came in at 2% last Friday, in line with the consensus view. Many analysts have argued that GDP hanging around 2% or lower is indicative of the stalemate Congress has sustained for more than a year.
The focus among investors, and maybe among many American voters, has been to get past the election so that Congress can reach a budget deal to allow the country to avoid a fiscal cliff.This may simply have been another month, and another jobs report. Or, business as usual until politicians in Washington D.C. can broker agreements in 2013 that will give companies a more stable economic environment -- specific taxes, regulations, cuts, and more -- to begin to invest corporate capital for growth. "Regardless of who is elected in November, the market is going to rally and the reason is less uncertainty," Jerry Chafkin, chief executive officer of AlphaSimplex Group, said last month at a luncheon event. --Written by Joe Deaux in New York. >Contact by Email. Follow @JoeDeaux
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