It seems that every month, economic indicators are released that take the elites and the MSM (redundant?) by surprise. Hence, the MSM leads with headlines like, “unexpected,” “surprising,” and the like. Here is the latest “unexpected” story, from CNBC.
New U.S. claims for unemployment benefits unexpectedly climbed to a nine-month high last week, yet another setback to the frail economic recovery.
Initial claims for state unemployment benefits increased 12,000 to a seasonally adjusted 500,000 in the week ended August 14, the highest since mid-November, the Labor Department said on Thursday.
Analysts polled by Reuters had forecast claims slipping to 476,000 from the previously reported 484,000 the prior week, which was revised up to 488,000 in Thursday’s report.
A Labor Department official said there was nothing unusual in the state level data. The data covered the survey week for the government’s closely watched employment report for August, scheduled for release early next month.
“There are some technical factors out there and the seasonal factors seem to be pushing it up a little bit. But given the trend of claims it looks like the economy ran into a wall in August,” said Chris Rupkey, chief financial economist at Bank of Tokyo-MitsubishI UFJ in New York. (Emphasis mine)
I think the title says it all, why is our government and their media lapdogs surprised by economic reality? ObamaCare, with its increased costs and requirements, hangs over the heads of business owners like the Sword of Damocles. The pending expiration of the Bush tax cuts will increase costs. If a lame duck Congress passes Cap and Trade, the costs to businesses will increase exponentially. If card check passes, workers will be subjected to intimidation tactics until they signed a card to join a union. Given all of these factors, would you start hiring? Would you expand?
The “progressives” say that capitalism causes the problems that we face. However, we evil capitalists have been predicting exactly what is happening right now. None of this is “unexpected.” It’s reality! The more the government tampers with the market, the worse it performs. Every tax and regulation increases costs, which, in turn, costs jobs. Either people are laid off, or businesses refuse to hire. Since the left denies reality, they are surprised when the results of their activities come to fruition. Our government has introduced a great deal of uncertainty into the market, and are then blindsided by the results of that uncertainty.
The only solution is to embrace reality and accept that the free market creates wealth and jobs, not the government. However, I don’t see our “progressive” friends understanding this anytime soon. They’ll just continue to run “unexpected, surprising, and unanticipated” headlines.
Cross posted from the Conservative Hideout