The “woe is me, America as we knew it” crowd is going to be massively ticked off with the latest job report. Seriously, this is Make America Great Again winning of epic and YUGE proportions.
The jobless rate is the lowest since the Vietnam War.
First-time claims for state unemployment benefits came in at 201,000, down from 204,000 in the previous week. Economists had predicted a rise to 210,000.
Jobless claims are a proxy for layoffs and have been closely watched for signs that trade disputes and escalating tariffs could be costing Americans jobs. Record lows indicate that what many have described as a “trade war” is weighing far less on the U.S. economy than predicted by critics of the Trump administration.
Weekly jobless claims can be volatile so economists often look to the four-week moving average of initial claims. This declined by 2,250 to 205,750, the lowest level since December 1969.
Too bad, so sad, the hopes for keeping more and more people on the government plantation just took a hit. Oh, well.
As for the trade war, what the “critics” don’t want to understand or admit, the difference is minimal when talking heads are being paid to express an opinion, is that raising the tariffs makes the cheap junk that is dumped into the American market the same price as quality goods that may well be made here. Given that option, which product is a savvy consumer going to pick? Something that is going to last a while, or an item that will need to be replaced next year when it dies and the price will be just as high, thus making it twice as expensive.
And when it comes to raw materials, is it going to be cost effective for producers to ship raw materials such as cotton and lumber to the far east only to have consumers pay a large tariff that would be the equivalent of an American produced good when it returns? Or would it benefit everyone to fire up the shuttered looms and factories and teach a new generation of Americans what made America great in the first place?
This is really no-brainer type stuff. Trump took off the regulations that were strangling the economy and has now leveled the price field. It has resulted in WINNING WINNING and more WINNING. And no we are not tired of it yet.