Regardless of how Republicans try to make the argument about Job Growth, they have no valid track record for their complaining. As a matter of fact, the current majority House had promised to make a difference and they haven't. That pattern is backed by long standing records in the nation's history of Republican administrations.
President Obama's job record is still impressive in the face of many obstacles to his success.
The Unemployment Rate remains at 8.2% (click title to entry - thank you).
To Note: Hourly earnings are up $0.06 during June.
The challenge to the American people when valuing job growth is to realize what is obstructing that growth. The Consumer Price Index is down in June and that should increase job growth. If people have more money to spend, the more likely they are to purchase new items or items that were unattainable before. So that is a move in the right direction.
If President Obama is not able to solicit benevolence from the Republicans for all his trying at Bipartisanship, it is up to the American people to seek the root of the problems to job growth and correct it. If federal legislators can't or won't get out of the way for their own reasons yet to be understood, political pressure into November can be effective.
There are obstructions and the Department of Labor have recognized some of them.
One of the areas the Department of Labor has been examining as an impact on the Producer Price Index are the Airline Fees. These fees effect Small Business people and tourism. The more a consumer has to spend on fees to fly the more inhibited growth in other areas of the economy.
One important way airlines have generated additional revenue (click here) is by adding surcharges and/or increasing ancillary fees for optional services or a la carte pricing. As an example, rather than airlines passing on higher fuel costs in the form of fare increases, fuel surcharges may be less noticeable. Passengers may be more likely to accept increases in
fares if they know that fuel prices and fuel surcharges are rising in tandem. In addition, airlines have optimized capacity by eliminating and/or reducing the number of flights
between some origins and destinations. These strategies have reduced the supply of available airline seats, giving airlines additional pricing power....
Chart 1 of this article shows exceptionally high increases in baggage and cancellation fees. In realizing the airline industry has dense costs in fuel, the idea the USA military could share its use of a combination fuel with their jets that is equivalent to E85 in automobiles might help the fuel costs to airlines.
Additionally, the airlines should realize their increased fees are actually working against their advantage. Noted in this article highlighted by the Department of Labor is the fact the airlines are also reducing their number of flights into and out of certain areas of the country. I have to ask if this is due to reduced ridership on airlines due to higher prices charged for fees or is this simply a long term trend of ridership in these areas that dictate limiting the number of flights?
This is just one example of how private industry is increasing incomes, but, limiting their own capacity to grow and add jobs.
These fees are particularly egregious because they are not only limiting ridership to airlines, they also limit tourism and local economic growth. So, what seems like a prudent increase in costs to bring higher cash reserves to airline treasuries there is also a larger picture to why jobs are not increasing in local economies. ACCESS to local economies is just as important as the local economy itself.
Railways are still more fuel efficient to moving people. They have access to nearly any area of the country when it is matched with bus service. There are plenty of roads, arguably too many roads, but, unless a consumer can absorb the increased fuel costs 'road trips' could be prohibitive.
It is dynamics like this causing problems Americans can identify and seek input to their Congresswoman or Congressman to move them to act to improve the performance of the nation's economy.
I return to the fact the hourly rate for the employed has increased by $0.06 in June. That is an impetus to job growth. More money in the hands of the Middle Class dictates a greater potential to the USA economy.
