Friday's unemployment reading was more bad news. Instead of net job creation, the economy had net job losses for January. 20,000 fewer jobs in January than a month earlier. The unemployment rate fell to 9.7% only because more Americans simply gave up looking. If everyone gives up looking, then I guess we can get the unemployment rate to zero (even with no new jobs).
There are few hopeful signs for the economy. It seems that everything is simply being put on hold until the Congresssional elections this November. The Administration has made minor cosmetic changes in its war on the economy in an effort to stem the dramatic erosion of public support. So far, the polls show that the public is not fooled. This Administration is committed to nationalizing much of the American economy and stifling whatever is left.
The combination of anti-business rhetoric and class warfare policies has undermined the business atmosphere, which won't improve until the policies changes. It looks like we have to wait another ten months to see if that will happen.
