Economy: Two things need saying about Friday's jobs data showing marked deterioration in the U.S. economy. One, it's not as bad as it looks. And two, it might get worse if policymakers do nothing.Start with the first point. Yes, the unemployment rate surged to 6.1% in August from 5.7% in July and 5% at the end of 2007. And, yes, the U.S. shed 84,000 jobs for the month, bringing the year-to-date toll to 605,000. Hardly a stellar performance, and one that certainly points to worsening conditions.
But it's also worth noting that 6.1% unemployment is pretty normal. That's right: Since 1970, the jobless rate has averaged 6.1%.
Again, that doesn't mean it's a good report. Far from it. Just that it's not a cataclysm, or as some foolishly suggest, a "depression." And other data in the report suggest things aren't so bad, at least not yet.
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