The report for initial claims for unemployment insurance was just released and the media spin, not unexpectedly, is focused on a drop in first time claims. Further down the story the uglier data is exposed:
For the week ending June 27, the number of Americans receiving state jobless benefits rose 159,000 to a record 6.88 million, more than double the level during the same period in the prior year.
“Not as bad as expected” will be the prevailing media news theme until Congress finishes with Cap and Trade and ObamaCare. Thereafter, as the momentum increases for Stimulus II, a decidedly negative spin on employment and negative GDP will predominate. Manipulating the news cycle is an integral tool in the Obama/Reid/Pelosi strategy. But as today’s unemployment data demonstrates, joblessness continues to rise and federal tax receipts will continue to shrink as a result of fewer wage earners and disappearing private sector profits.
Yet to emerge is a Democrat that will make the case for how private sector growth will result from their policy initiatives passed this year. It must be said again: the private sector creates the wealth that pays all of the taxes the government collects. What are Obama/Pelosi/Reid doing to promote private sector recovery and growth?