This morning on CNBC’s “Squawk Box,” AEI’s Kevin Hassett joined Anthony Chan (Chase Private Clients), Adam Hersh (CAP), and Mark Zandi (Moody’s Analytics) for a “Jobs Friday Power Panel” to preview the jobs report. The news was good: the economy added 195,000 jobs in June. Most predictions had the number much lower, with concerns over the effects of the sequester, uncertainty about the Fed’s tapering of the QE3 program, and the coming implementation of Obamacare.
While the economy continued its trend of posting positive numbers in spite of the policy wrenches thrown at it, an ongoing negativity by many observers (including panelist Adam Hersh of CAP) over the trajectory of the economy remains. (And to be fair, not everything is peaches and rainbows — Jimmy P has a great piece about five troubling bits of data from today’s numbers here.) But the numbers continue to indicate a steady but slow recovery.
The panel puzzled over this for some time, which led to Kevin providing an interesting explanation for the continued negativity:
Normally a White House and their political supporters would be crowing as the economy starts to get better. But I think that big government agenda is upended a little bit if we don’t need another stimulus. It’s odd to watch as the data gets better and better that it almost seems like President Obama’s allies are getting more and more concerned because stuff that they want to do — big government spending programs — are less likely.
You can watch the full exchange here.