Quote of the Day (So Far!)
Did the blizzard affect unemployment?
4:58 PM, Mar 4, 2010 • By MATTHEW CONTINETTI
A new jobs report comes out tomorrow morning. The White House is already trying to spin the numbers. Economic adviser Larry Summers says the employment situation may have worsened in February because of the weather. Hudson Institute economist Diana Furchtgott-Roth says that's baloney:
Whatever the February report shows, though, there is also some good economic news.
For the last six months, the economy has been characterized by what Keynesians call a breakdown in Okun's Law. Basically, firms have been cutting workers, maintaining output, and generating profits. For a Minsky-Jones economy, this means that they are poised to expand. That is why I am more optimistic than standard forecasters for the next six months.
And of course, if health care reform is defeated, businesses will be spared tax hikes and regulations and further uncertainty. Which could lead to more hiring. That would be a silver lining for Obama -- and a reason for Republicans to be cautious.