Congress Split on Significance of Latest Unemployment Data

Dec. 4, 2009 -- The Joint Economic Committee of Congress disagreed today on the significance of the latest unemployment rate, which fell two-tenths of a point to 10 percent last month.

The U.S. economy shed about 11,000 jobs in November, far fewer than the 125,000 jobs economists had anticipated. The news struck Republicans as little cause for celebration but prompted Democrats to cite the figures as a positive trend and a sign that the economy continues to improve.

"Today's job report makes it clear we are making progress but the road to recovery will be long, and it will not be easy," committee chairwoman Carolyn Maloney, D-N.Y., said. "While we have brought the economy back from the brink, we are not yet where we need to be in terms of job creation. It is a tragedy for every American family that has lost a job in the past or in the present but we are trending in the right direction."

The U.S. Bureau of Labor Statistics reported that about 15.4 million people are unemployed across the country, almost twice as many as the number of unemployed one year ago.

Republicans on the committee pointed out that that latest figures showed the 23rd straight month of job losses

"The number of jobs lost is better than expected, which is good news, but we can't celebrate a 10 percent unemployment rate," Rep. Kevin Brady, R-Texas, said. "I think we ought to always look for the good news with these numbers and there are some today. But I do caution this Congress against any kind of end zone dance just yet on this economy."

Maloney praised President Obama and Democratic leaders in Congress for the apparent recovery of the economy and the slow down in job losses, comparing the job losses to those at the end of the Bush administration.

Too Soon for End Zone Dance

"We certainly are not dancing in the end zone," she said. "The president is taking job creation incredibly serious, as is every member of Congress on both sides of the aisle. You have to admit we are trending under the Democratic administration in the right direction. The last month that former President Bush was in office, we lost 700,000 jobs and we have consistently moved in the right direction to this month, where it is 11,000 jobs."

Sen. Amy Klobuchar, D-Minn, said, "The only people dancing in the end zone are the Minnesota Vikings after Brett Favre has thrown these great passes, just in case you guys missed it."

Keith Hall, commissioner of the Bureau of Labor Statistics, reported that job losses continued in industries such as construction, information services and manufacturing. Health care and temporary services added jobs in November, he said.

Sen. Sam Brownback, R-Kan., warned the joint committee of a growing "government bubble," which he compared to the devastating housing and dot-com bubbles.

Brownback said the new bubble is emerging as a result of the Federal Reserve's monetary policy, which, he said, is flooding the market with cash, increasing debt and creating larger deficits.

"What we're seeing here is a government bubble happening," Brownback said. "These bubbles develop quicker and with more frequency and with more problems. Each cycle they go and they come around. That's one of the big concerns I have."

Republicans said the highest hurdle in the economic recovery is overcoming the pessimistic mentality among small businesses owners, who are reluctant to add new workers amid fears that Washington is increasing health care and energy costs, while adding regulation and new taxes.

"Congress and this White House are frightening the horses and it needs to stop because it's the private sector -- not the government -- that will move America into a sound economic recovery," Brady, the ranking member of the committee, said.

Democrats and Republicans on the committee agreed on at least one point -- dissatisfaction with the federal government's bailout of Wall Street and the lucrative bonuses that are sure to be handed out there this holiday season.

Keep an Eye on Oak, Elm Streets

"At a time when Wall Street, after emerging from its struggles on the backs of taxpayers, is set to pay outrageous bonuses again, while unemployment remains uncomfortably high," Klobuchar said. "I am forced to ask the question: When is enough, enough? How do we make sure that this money gets out there to continue to generate jobs?"

"We're focusing on Wall Street and, to some degree, Main Street," Rep. Michael Burgess, R-Texas, added. "But, really, we should consider what's going on on Oak Street and Elm Street back home, because this is where the job growth will occur."