With 204,000 new jobs in October we saw a definite uptick in the economy despite the Tea Party shutdown of the Government. Some economists are saying that we might be approaching 'escape velocity', meaning that the economy could start to fly on its own producing real sustained growth. This might just be hype intended to convince the Federal Reserve to stop buying bonds as this would favor certain people in the financial markets. We'll know better after we see the November numbers.
There are complaints that half of these new jobs were minimum wage service, retail and temp jobs. Of course the other half were better paying jobs. A recovery has to start with as many people as possible getting a pay check. In the 1930s FDR began by putting men to work with shovels, today the Fed is trying to accomplish this by boosting consumer credit. This means an uptick in retail and service sectors will come first, so this could be a good indicator if an actual recovery has started.
Standard & Poors has downgraded France's credit rating for 'failing to take action' on their long term debt problem, except they did resolve their fiscal problems. They were actually downgraded for raising taxes on the rich. The billionaires that own S&P don't want the peasants catching on to the fact that the same things that fixed the economy in the 1930s, those New Deal policies that gave us steady growth and small deficits for 50 years, would work just fine now too.
There is actually a lot of pent up demand in the US after the 30 years of neglect initiated by Ronald Reagan. The three trillion dollars worth infrastructure repairs that are badly needed would put a lot of people work even without doing 21st century upgrades like the Chinese have been building. China owns half of the world's large construction cranes and produces half of the world's cement. Before Reagan, the US was like that, and it could be again. Instead the Republicans in the House alternate between passing bills to end ObamaCare and naming Post Offices after Reagan.
We could change that in 2014, in this recent election the Millennials turned out vote in bigger than expected numbers and they went for Democrats. Even Chris Christie with his big landslide lost the Millennial vote, the minimum wage increase passed on referendum in NJ even though it was opposed by Christie. Every year a new crop of Millennials turns 18, and they are the largest generation in history, out numbering even the Baby Boomers. Rush listeners continue to pass onto their reward every year, and they were demographic that has kept Republicans in business. At some point voter suppression and Gerrymandering won't be enough, and that could be the next election.
Twitter @BruceEnberg - send your favorite Millennial a retweet