Economics Update for the Week

The news has been good this week.

First, the jobless rate rate fell to below 9% for the first time in about 2 years, and initial unemployment claims fell to a roughly two year low as well.

Note that while the improvement in the labor force was good, 193,000 that rate means that something like 7 more years would be required to reach something approaching a normal employment picture.

Additionally, productivity rose strongly in the 4^th quarter, while the Institute for Supply Management's Manufacturing and Non-Manufacturing indices both rose strongly.

The only real question is whether the pain caucus calling for government austerity will screw this all up by cutting government spending, and possibly tightening monetary policy, too soon.