Interpretation of graphs is important. Today LinkedIn connected to the “The most important charts from the fantastic April jobs report.” Really! The analysis below the first chart tells us that the US is only 120,000 jobs from recovering all the the losses from the Great Recession. Another way to say it is the economy has not yet recovered all the jobs from the recession that ended five years ago. A later graph in the same post shows that the employment to population ratio for men 25-54 faltered [it went down] in April.
It is not a fantastic jobs report in April. It is one month of not too bad in a long series of uninspiring reports on growth and jobs. It is certainly true that the administration has limited influence on the US economy but the data is not supportive of the administration leading the economy to success.
The administration remains an enigma. There are many takes on what they are really focused on. MWG believes that jobs and growth are, at best, a constraint for them. Our working hypothesis is that they are trying to insure that Pikerty’s assertion, r>g, comes to pass where r is the return on capital and g is growth. Keeping g under control should do that. Then they think they can win the argument that rather than make everyone an investor that policy should lay waste to investors. See “Assault on the Chilean Miracle” to see that such an attack might be successful. We see the possibility for success in such an political attack in the US where seven years of uninspired economic performance has the voters edgy.