Improving Economy Hurts Romney

The lead article in today’s New York Times, “Jobless Rate Dips to Lowest Level for Last Two Years,” provides some welcome relief for President Obama and conversely hurts one of the main rationales for the Romney campaign.

The drop to 8.6 percent is not good news in itself but suggests that the economy is moving in the right direction at least. The new rate is the best for the economy in 33 months, and it comes accompanied with several other good signs as well. These include an increase in temporary hiring, retail sales and auto sales. And the statistics for the previous two months were revised upward as well.

There is still a major backlog of unemployed people, and part of the reason for the good statistic involves a drop in the number of people looking for work — only 64 percent of the people are involved in the labor market.

Still, it comes as welcome news for the President and deflates one of the main rationales for the Romney campaign — his supposed skill and knowledge of the economy. Whether this trend can be sustained may decide the result of the 2012 election.

Meanwhile, the Congress is tying itself in knots trying to pass an extension of the payroll tax cut and perhaps renew the extension of unemployment benefits as well. President Obama is suggesting they stay in session over Christmas if they can’t get it done. That’s not going to sit so well with Republican obstructionists.