Larry Kudlow-The Stimulus didn't work...

For the Record

The stimulus didn't work.

"Message to my fellow conservatives: Please don't blame the mainstream media for the improvement in jobs, unemployment and economic growth. Reporters are not making this up. The economy is better. It's going to give President Obama a leg up on the election. GOP beware, and come to your senses. Take Friday's jobs report from the Bureau of Labor Statistics. Non-farm payrolls gained 200,000, and the unemployment rate slipped to 8.5 percent from 8.7 percent. It may well be that a seasonal quirk added 42,000 messengers and couriers to the totals, but that will be lost in the headline reporting. It will be given back next month. It's inconsequential to the overall story. Likewise, a normal labor participation rate would yield much higher unemployment. But that's academic. Like any president, Obama will take credit for these economic gains. He's doing that right now. And he has a case to make: A year ago, the unemployment rate was 9.4 percent, and in 2011 it fell almost a percentage point. In the 12 months through December 2011, the economy produced 1.64 million new jobs, while in 2010, only 940,000 were created. On a monthly average basis, 137,000 new jobs per month were created in 2011, compared to only 78,000 a month in 2010. Things are getting better. Now, whether this has anything to do with Barack Obama's policies is quite another matter. After all, coming out of a deep recession, monthly jobs should be closer to 300,000 or 400,000, as they were during the Ronald Reagan recovery in 1983-84. The unemployment rate should be falling much faster. This should be the Republican message. Ironically, while President Obama takes credit for better jobs today, his forecast at the time of the $800 billion stimulus package was for near 6 percent unemployment at this stage in the cycle. So, the stimulus didn't work." --economist Lawrence Kudlow