Treasury Issues Positive Update on Negative Economy

The Treasury Department has issued a new Economic Update that makes it all sound so good. Here are some excerpts:

• "Payroll employment fell by 63,000 in February, following a decrease of 22,000 jobs in January." Okay, that's not good, but you see, "The United States has added 8.2 million jobs since August 2003."

• "The unemployment rate edged down to 4.8 percent in February from 4.9 percent in January." But, 2007 saw the weakest year-over-year job growth since 2004, according to U.S. Economy Guide Kimberly Amadeo.

• "Business spending on commercial structures and equipment rose solidly in the fourth quarter."

• "Strong global growth is boosting U.S. exports, which grew by 7.9 percent over the past 4 quarters."

• "Core inflation remains contained." In this context, "contained" means, "The consumer price index excluding food and energy rose 2.5 percent over the 12 months ending in January."

• "We are on track to make significant further progress on the deficit." That's the deficit that has now reached $9.2 trillion, which is $500 billion more than last year, points out Kimberly Amadeo.

If it's all so good, why does it feel so bad? If the economy shows so "Many Signs of Economic Strength," why does it need a $170 billion tax rebate program to "stimulate" it?

Also See:
February Job Loss Could Signal Recession (US Economy)
Why the Budget Deficit Is Closer to $500 Billion Than $168 Billion (US Economy)
Tax Rebate Infomation Directory