The February jobs report is in, and the numbers show significant growth in the private sector. The question is, who deserves credit – Trump or Obama? Gary Cohn, the head of Trump’s National Economic Council said in an interview with CNBC that Trump is falsely taking credit for an economic situation that Obama created.
While Trump has done “deals” with CEO’s who have promised to create jobs, those jobs have not yet come to fruition, Cohn explained:
“Look, there’s clearly a good February as part of the number. I’m not going to deny that,” Cohn said. “But on the other hand, when you look at what we’ve been doing here at the White House and all of the CEOs that we’ve brought in — whether it be Exxon or Sprint or Intel — they’ve promised enormous amounts of jobs and job creation in the United States. Those hirings have not been done yet. Those are future hirings.”
While Trump is quick to claim credit for a thriving stock market and a healthy economy, as we know and Cohn admits, it’s not Trump’s doing:
“So we’re still living on the hirings from the normalized economic growth that’s built into the system here,” Cohn told CNBC. “So when you look at what’s ahead of us and what’s built into the system, we have a huge backlog of hiring that we already know about in the normal run rate of the economy, so we’re very excited about what’s ahead of us.”
Business Insider cites Politico to remind us that the numbers are in fact in line with Obama’s 2 previous years: Politico’s Ben White noted that the 235,000 gain in February was roughly in line with the past two Februarys: 238,000 in 2015, and 237,000 in 2016.
What’s more? The “jump” in jobs numbers may be largely attributable to the weather, when the weather is warmer more construction jobs become seasonally available. Jobs that wouldn’t otherwise be available and which won’t sustain once the weather turns.
Via Business Insider: Additionally, the weather could have made the report look even stronger than it would have otherwise. The month was the second-warmest February in the past 123 years in the US. As Paul Mortimer-Lee, chief economist at BNP Paribas, noted, construction jobs boomed by 58,000 in the month — nearly three times as many as the industry’s 12-month and 24-month averages.
Francois Gourio, a researcher at the Federal Reserve Bank of Chicago, used his model to estimate that between 30,000 and 70,000 jobs were added because of the warm weather. (Of note: Chicago went without snow in both January and February for the first time in 146 years.)
— CNBC Now (@CNBCnow) March 10, 2017
Do you think that Trump should be congratulated for the jobs numbers, or should we give credit to Obama? Comment below and let us know.