"The blizzards that affected much of the country during the last month are likely to distort the statistics. So it's going to be very important ... to look past whatever the next figures are to gauge the underlying trends," Summers said in an interview with CNBC, according to a transcript.
Construction activity was hit particularly hard by the storms, but many restaurants and stores also had to close, putting the brakes on hiring plans and temporarily throwing some employees out of work.
The statement, made on a CBS news program, is the first time in recent memory that George Bush has not been blamed for either a major weather event and/or a problem effecting the current administration. All joking aside – How bad is the unemployment rate going to be if the administration is casting about for excuses a full week ahead of their release?
On February 18th, MSNBC ran an AP article which placed the blame for a slower economic recovery on continuing layoffs.
Freddie and Fannie are still struggling with housing loans and despite a higher than expected new home start in January , construction spending dropped.
Unemployment benefits for many are about to expire for millions of the nations unemployed. Congress is trying to further extend those benefits however, with a falling tax base, (less income) rising debt, there may be no way to continue to write a blank check, especially as those figures are expected to either remain the same or rise. Eonomist do not see any movement downwards in the rate through 2010.
In the meantime the administration has focused continuously on Health Care Reform (many aspects of which will further add to the unemployment rolls, specifically, regulating insurance carrier’s premiums.) Checkmated by the good people of the Commonwealth of Massachusetts who elected Scott Brown in a move to prevent a filibuster proof Senate on this very issue, the Administration is now moving towards reconciliation or the need for a simple majority in order to pass the bill without debate.
Adding to the public debt, appears to be the main objective, although, Obama is rewriting some portions of the bill, expected to be a smaller version. One has to ask, with the economy in shambles, (one would hazard to guess that using an “Act of God” (i.e. blizzard) as the scapegoat for higher a higher than anticipated unemployment rate), the administration might be better off serving the interests of the people, rather than the “legacy” of the President (health care reform).
For reference: the weather from the Washington Post (February’s archives) has a few tips as to how severe the weather was this past February and who to blame: one, two major blizzards shut down Washington for a few days, (meaning Washington was not working), the rest of the nation also experienced heavy snow, freezing temperatures, or a more “active” winter season. The blame was placed on El Niño patterns, and of course, Global Warming! Therefore, in some universe, blaming unemployment rates on the weather must make sense.
1 comment:
The blizzards that affected much of the country during the last month are likely to distort the statistics.
The release of this statement was a public service announcement so that we would be able to distinguish them from the jobless numbers they intentionally distort.
I for one thank them for clearing the air so we know who to blame.
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