The U.S. economy is roaring back during the home stretch of the 2020 presidential campaign as nearly 1.4 million new jobs were added in August and the unemployment rate dropped to single digits.
“Nonfarm payrolls increased by 1.37 million in August and the unemployment rate tumbled to 8.4% as the U.S. economy continued to climb its way out of the pandemic downturn,” CNBC reported. “The unemployment rate was by far the lowest since the coronavirus shutdown in March, according to Labor Department figures released Friday.”
Dow futures shot up by 200 points in response to the news, or .7%, while S&P 500 futures surged .3%.
“An alternative measure that includes discouraged workers and those holding part-time jobs for economic reasons also fell, down to 14.2% from 16.5% in July and 22.8% at the peak in April,” CNBC added. “Economists surveyed by Dow Jones had been expecting growth of 1.32 million and the jobless rate to decline to 9.8% from 10.2% in July.”
A Politico report from earlier this year outlined how Democrats are panicking over the prospect of the economy coming back before the election.
Harvard professor Jason Furman, a top economist in the Obama administration, warned Democrats in April about the economic turn around that was coming, saying, “We are about to see the best economic data we’ve seen in the history of this country.”
“Instead of forecasting a prolonged Depression-level economic catastrophe, Furman laid out a detailed case for why the months preceding the November election could offer Trump the chance to brag — truthfully — about the most explosive monthly employment numbers and gross domestic product growth ever,” Politico reported. “Trump could be poised to benefit from the dramatic numbers produced during the partial rebound phase that is likely to coincide with the four months before November.”
“Trump beats Biden on the economy even right now!” a Democrat operative told the publication in reference to polling that was done during the worst point of the pandemic. “This is going to be extremely difficult no matter what.”
“Even today when we are at over 20 million unemployed Trump gets high marks on the economy, so I can’t imagine what it looks like when things go in the other direction,” a former Obama official told Politico. “I don’t think this is a challenge for the Biden campaign. This is the challenge for the Biden campaign. If they can’t figure this out they should all just go home.”
One former Obama official, who Politico said was still close to the former president, said, “This is my big worry.” When asked about the level of concern that Democrat officials had about an economic turnaround, the official said, “It’s high — high, high, high, high.”
Political strategist Arthur Schwartz responded to Politico’s report in a tweet, writing: “Dems are spooked because the economy is going to rebound quickly. Their strategy for November is to keep the country closed. Their interests are served by hurting as many Americans as possible.”
Dems are spooked because the economy is going to rebound quickly. Their strategy for November is to keep the country closed. Their interests are served by hurting as many Americans as possible.
The general election scenario that Democrats are dreading https://t.co/z8CzlD3DYD
— Arthur Schwartz (@ArthurSchwartz) May 26, 2020
This report has been updated to include additional information.