Dems, GOP Clash Over Latest Jobs Report

With the Labor Department reporting today that U.S. unemployment level had risen to 5 percent — its highest point in two years — and weak growth in new job creation, both GOP and Democratic leaders wasted no time in bashing each other for being the cause of the problem.

Democrats on Capitol Hill charge that President Bush has done little or nothing to address the subprime mortgage crisis, and that problems in the financial services sector are spreading to other parts of the economy. Republicans counter that Democrats sought to raise government spending, paid for by new tax increases (a charge Democrats deny), leading to a so-called "war on jobs" that threatens the American economy.

When Congress returns to session in mid-January, look for both sides to expand on these issues. The White House is considering an "economic stimulus" package certain to include more tax cuts. Speaker Nancy Pelosi (D-Calif.) told reporters last month that Democrats were not developing their own economic package yet, although that may change.

“The anemic job growth in today’s Labor Department report for December is just further evidence that the Bush administration’s economic program is failing the American people," said House Majority Leader Steny Hoyer (D-Md.) on Friday. “Democrats are very focused on the issues of economic security that the American people are correctly concerned about — stagnant incomes, the increasing number of uninsured and the record number of foreclosures."

House Financial Services Committee Chairman Barney Frank (D-Mass.) added: “Today’s employment numbers unfortunately confirm that the weakness in the economy is getting worse. ... Additionally, these numbers are a cause of great concern for the economy as a whole and what started out as a financial problem is now spreading to other sectors of the economy. Today’s job numbers should be a wake-up call that a public policy response is needed to help the economy recover more quickly and to help average Americans deal with any downturn.”