One would assume the first thing you learn in politician school is the art of taking credit for things you are or are not responsible for.
But that hasn’t been the case with the economic “recovery,” the biggest economic story right now.
Both Democrats and Republicans have been shying away from the recovery story, writes Potomac Research Group’s Greg Valliere.
Even though this morning’s job report disappointed, the unemployment rate did drop to 6.7%. It may be partially for the “wrong” reasons (a decrease in the labour force participation rate), but you’d think Democratic politicians would have seized on the narrative by now.
The deficit continues to shrink and stocks gallop to record highs.
You wouldn’t necessarily know that from the vibe in Washington. From Valliere’s morning note:
The Republicans have a credibility problem. They continue to rant about the disastrous Obama economy, even though their governors — who dominate the Midwest — are enjoying an economic revival. And they continue to spread a false narrative of out-of-control deficits, when they’re obviously plunging. Why don’t Republicans take credit for the falling deficit? Their fiscal restraint played a major role in this great improvement.
The Democrats don’t dare to declare victory; it would hurt their quest for more jobless aid and other social spending. And God forbid they should celebrate the stock market recovery; the markets are only for the elites, right? We understand the aversion to repeating George W. Bush’s “mission accomplished” blunder on Iraq, but the Democrats’ refusal to even acknowledge this recovery also is a political blunder.
The bottom line, Valliere writes, is that “the biggest domestic story of the year is going to be the strength of the recovery and all of the attendant plusses, such as a plunging deficit… yet this city refuses to see it.”
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