More good news for the auto bailout

On a day when we heard about disappointing job numbers, the Obama administration got some good economic news for car sales numbers. The news was particularly good for Chrysler, which had another huge month with 30% year-over-year growth in May.

It marked a 12th consecutive month of sales gains of more than 20% for the company, which has gained about two percentage points in U.S. market share to nearly 11%. Total sales were 150,041.

And it comes as Chrysler prepares later this month to roll out its key new car introduction for the year, the Fiat-based Dodge Dart, above, that it aims to get the company back into the small-car game. Dart is an enlarged, Americanized version of Fiat’s sporty Alfa Romeo Giulietta.

All the company’s brands — Chrysler, Jeep, Dodge, Ram and Fiat — posted year-over-year gains in May. Fiat was up most, 128% to a record month as the tiny 500 finally gains some traction.

But the Chrysler brand was heroic — up 81%, as the 200 sedan zoomed 87% and the big 300 rocketed 140% for its best May since 2007.

The administration would be wise to emphasize this news at a time when the unemployment rate is getting plenty of attention.

  

CBO says stimulus package boosted the US economy

Democrats have taken a lot of heat for the stimulus package, and public perception of the package certainly hurt Democrats in the midterm elections.

But we’re getting more evidence that the stimulus worked, as the CBO has come out with a new report about the impact of the package.

The massive U.S. stimulus package, widely panned by voters, injected life into the otherwise-sluggish economy between July and September, the nonpartisan Congressional Budget Office said Wednesday.

The American Recovery and Reinvestment Act put between 1.4 million and 3.6 million to work in the third quarter of this year, a time when more than 15 million Americans were unemployed, CBO said.

It also boosted national output by between 1.4 percent and 4.1 percent during that time, the CBO said.

During the third quarter, the economy grew by an annual rate of 2.5 percent. Economists say a rate faster than 3 percent is needed to make any noticeable dent in unemployment.

Here’s even more impressive data.

The unemployment rate, currently 9.6 percent, would have been between 10.4 percent and 11.6 percent without the Recovery Act, the CBO said.

The stimulus created the equivalent of 2 million to 5.8 million jobs during the third quarter as part-time workers shifted to full-time work, or employers offered more overtime work.

The Obama administration made the fateful error of predicting that the stimulus package would prevent unemployment from going over 8%, and that hurt the public perception of the package.

It’s clear, however, that the stimulus package helped to save the US economy.

  

Unemployment rate stays at 9.5%

OAKLAND, CA - AUGUST 05: John Heckert (L) and Heron Puebla use a computer to apply for unemployment insurance at Eastbay Works Oakland One-Stop Career Center August 5, 2010 in Oakland, California. U.S. jobless claims unexpectedly rose by 19,000 new claims for the week ending on July 31. (Photo by Justin Sullivan/Getty Images)

The new employment numbers were not very encouraging.

Private employers added new workers at a weak pace for the third straight month, making it more likely economic growth will slow in the coming months. The jobless rate was unchanged at 9.5 percent.

The Labor Department said Friday that companies added a net total of 71,000 jobs in July, far below the roughly 200,000 needed each month to reduce the unemployment rate.

Overall, the economy lost a net total of 131,000 jobs last month, as 143,000 temporary census jobs ended.

The census numbers need to be factored in, and it also looks like state and local governments are shedding jobs. In many ways that’s a good sign for long-term fiscal health, but in the short term the job losses hurt. Perhaps the recent jobs pill passed by the Senate this week to help save jobs for teachers and cops will have a positive impact in the coming months.

  

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