Unemployment Falls to 7.7 Percent
The economy added 146,000 jobs last month and in a bit of a surprise the unemployment rate fell to 7.7 percent. This has more to do with people dropping out of the workforce than improvement in the economy.
I'd like to see a $50 billion to $100 billion infrastructure stimulus to improve roads, bridges, and schools. If we take the savings from the drawdown in Afghanistan, eliminate the 2 percent FICA holiday and allow the Bush tax cuts to the top 2 percent to finally expire, there will be more than enough money to pay for a new stimulus. Then we can have a burst of economic activity in the economy created by the spending and improve job creation numbers. The other benefit is that we will have infrastructure that is good for the next 20 to 50 years for our investment now. It is good for the short term and the long term.