Despite the destrictive actions of both parties in Congress, the private sector, spurred on by President Bush's pro-growth tax cuts, continues to drive the American economy forward.
Job growth slowed in the U.S. economy in April, but wage growth took off, the Labor Department said Friday. Nonfarm payrolls expanded by 138,000 in April, less than the 199,000 expected by economists surveyed by MarketWatch. The unemployment rate remained at 4.7% as expected. Average hourly earnings increased 9 cents, or 0.5%, to $16.61. Economists expected earnings to rise 0.3%. Earnings are up 3.8% in the past year, the biggest yeaer-over-year gain since August 2001. The acceleration in wages will keep pressure on the Federal Reserve to continue to raise interest rates to stamp out inflationary pressures stemming from wage costs.Failure to reap the political benefits of an indisputably strong economy may have been the White House's premier failure, and Tony Snow had better turn that around.
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Perhaps the increase in numbers of people living in poverty; or the decrease in real wages, measured after inflation, are obstacles to the perception of economic growth.
I can only hope Mr. Snow will talk up the economy; I'm sure the loyal opposition will be happy to discuss gas prices and rising interest rates.
Posted by: Mike at May 5, 2006 06:47 PM




