The Economy, Stupid

Tankwoman's post about the declining stock market was on my mind this morning when I read this in the NY Times:

The nation’s employers eliminated tens of thousands of jobs in June for the sixth consecutive month in a steady chipping away of the work force that seems likely to leave the economy very weak through Election Day.

[snip]

“The numbers are telling us that there is an ongoing deterioration in the labor market at a relatively rapid clip,” said Jan Hatzius, chief domestic economist at Goldman Sachs. “It is a sign that the fiscal stimulus, the tax rebates, are failing to lift the broader economy.”

Apart from the 62,000 jobs eliminated in June — and 438,000 since January — most workers lost ground to inflation last month, the Bureau of Labor Statistics reported. While the average weekly wage of most ordinary workers was up 2.8 percent in the 12 months through June, the Consumer Price Index was up more than 4 percent.

Come November, people are going to be voting on basic pocketbook concerns - short of a terrorist attack here at home, it seems likely that economic security, rather than national security, may be the driving force in this election.

It's the economy - again, stupid.

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