Originally Posted January 4, 2008:
She made this claim:
“That’s what happens when you stimulate the economy from the private sector,” she said. Such stimulation makes an economy “recession proof,” she said, marked by “competition and prosperity.”
From the Washington Post:
Friday, January 4, 2008; 4:27 PM
The jobless rate rose to 5 percent last month, up from 4.7 percent in November, the Labor Department said today. That marks the highest jobless rate in two years and the largest single-month rise in joblessness since the 2001 recession. There are 1.1 million more people looking for a job but unable to find one than there were a year ago.
"We are on the verge of recession now," said Robert Dye, senior economist at PNC Financial Services Group. "We are teetering on the edge of the precipice, and it will not take much to push us over."
Economists have been counting on a strong job market to fuel Americans' incomes, helping make up for the loss of wealth due to dropping home values. Thus, the weak report was a deep disappointment. The stock market fell on the news, with the Dow Jones industrial average closing down 257, nearly 2 percent, at 12,800. The Standard & Poor's 500 index lost nearly 2.5 percent, dropping 36 points to 1,412. The Nasdaq composite gave up 98 points, about 3.8 percent, to end the day at 2,505.