The Economics Editor at Yahoo.Com tries to cover the unemployment data bust with mediocre good news as he attempts to here.
“Throughout the day, auto sales trickled in. Auto sales are an extremely important metric. Cars are the biggest retail industry and the biggest manufacturing industry in the U.S. They represent big-ticket purchases that require the extension of significant credit. And by and large, the figures for May 2012 were positive. Chrysler reported that sales were up 30 percent from a year ago, while GM’s sales rose 13 percent and Ford’s rose 11 percent. Foreign-based auto companies staged even more dramatic increases. Toyota’s sales were up 90 percent in May 2012 from May 2011 (a month in which its sales were heavily impacted by the tsunami), while Honda’s rose 47 percent.”
These increases to auto sales sound nice – but where is the money coming from to purchase these? Personal income – as he stated – was only up 0.2%. This is not enough of an increase, with so few people in the workforce, to support these huge increases in auto sales.
The reason for his poor logic ability become clear at the end – “There is a crisis of unemployment in this country and our policymakers aren’t doing anything about it.” The former NY Times contributor and staff writer at Slate makes his opinion all too clear. He’s thrown in his lot with Obama the the ‘Do Nothing Congress’ BS.
Well done Mr Gross.