ANOTHER ECONOMIC JOLT – AT 8:44 A.M. ET:  Jobless claims unexpectedly rose this past week, negating the rosy predictions by the administration.  From Bloomberg:

More Americans unexpectedly filed applications for unemployment benefits last week, a sign the labor market is struggling to gain momentum.

Jobless claims increased by 10,000 to 424,000 in the week ended May 21, Labor Department figures showed today in Washington. The median estimate of economists in a Bloomberg News survey called for a drop to 404,000.

Consistent gains in hiring are needed to sustain consumer spending, which accounts for about 70 percent of the world’s largest economy. Federal Reserve officials said the jobless rate “remains elevated” at 9 percent, one reason central bankers pledged last month to complete their asset-purchase plan by the end of June and keep borrowing costs near zero.

COMMENT:  Just ask local merchants how the economy is doing.  I do that all the time and the verdict is grim.  We are not doing well.  If there is a national plan for recovery, it really isn't working.  The housing market is a mess.  And yet, the president's poll numbers have strengthened.  Go figure.

It's up to the GOP now to present an alternative economic policy.  But the party must have the sales job ready to go with the plan.  If you can't explain your policy, it will get chewed up by the other side. 

May 26, 2011