The number of people filing new claims for unemployment insurance rose to a higher-than-expected 462,000 in the latest week, the Labor Department said on Thursday, while the number of people still collecting jobless benefits fell to an almost two-year low.

OK, "higher-than-expected", technically.  But if it continues the trend, and if it’s clear the stimulus hasn’t done anything to stem the tide of unemployment, why does anyone expect it to go down, or even up just a little?  Until companies are more confident that they won’t get stuck with "unexpected" costs by this administration, they’re not going to invest in expansion.

As I’ve said, the Party of No will probably solve this, just by being there.

Filed under: Economics

Like this post? Subscribe to my RSS feed and get loads more!