The economic boom produced by the Bush tax cuts

The employment statistics are out for May, and they stink. Employment increased by only 75,000 during the month, nowhere near the rate of growth in the working age population, and the average number of hours worked per week actually dropped.

Since December 2001, real average weekly earnings have actually fallen from $278.3 to $277.38 (in 1982 dollars). Over that period, total employment has grown by 4,835,000, an average monthly rate of only 75,600. Over the same period, the total number of persons of working age has grown at a rate of about 150,000 a month or 9,600,000 over the period.

What a wonderful economic boom this is!

As Paul Krugman said today in his open letter (behind the NY Times subscription wall) to the new Secretary of the Treasury, Henry Paulson (whom I keep calling Pat Paulson for you old Smothers Brothers fans):

Americans are very unhappy with the state of the economy. According to Gallup, only 4 percent of the public considers the economy "excellent," and only 25 percent considers it "good." And there's good reason for this unhappiness. Although profits and C.E.O. compensation have soared, most workers are significantly worse off than they were a year ago.

The official line, however, is that it's a great economy, but that Americans for some reason aren't hearing the good news (just like they aren't hearing the good news from Iraq). Mr. Bush — who, by the way, isn't the affable guy you may have thought you met — doesn't seem as if he realizes that the economy isn't all that good; in his public appearances he seems peeved that he isn't getting credit for a great economy. And he expects you to explain to working Americans that the trouble they're having paying their bills is just a figment of their imagination.