So much for Sarah Palin’s claim that Republican tax cuts create jobs. In the post WW II era every Democratic President has left office with a lower unemployment rate than they inherited from their predecessor while only one Republican president left office with a lower unemployment rate than they inherited. That was Ronald Reagan, but his first term still holds the record for the highest average unemployment rate of any post – WW II four year Presidential term.
George Bush inherited a 3.9% unemployment rate and the results of all his tax cuts has been a rise in the unemployment rate to 6.1%, so far. By contrast Bill Clinton inherited a 7.4% unemployment rate and with his prudent fiscal policy left Bush a 3.9% unemployment rate.
Leave it to Team Bush to be the only American President to throw a war that failed to stimulate the economy.
Both the household survey and payroll data showed declines in employment last month and the only sector to show employment gains was government. The employment data strongly supports the conclusion that the economy is in a recession
Hours worked fell -0.5% and for the third quarter hours worked fell at a -1.9% rate. This implies that for third quarter real GDP growth to be positive productivity growth will have to exceed 2%.
Finally, average hourly earnings growth continues to slow and with the drop in hours worked average weekly wage growth actually fell.