Official White House Photo by Pete Souza
–The economy shed 125,000 jobs in June, more or less in line with projections. The decreased payrolls were in large part due to 225,000 laid off temporary census workers. The private sector added 83,000 jobs and the unemployment rate decreased to 9.5% due to a quickly contracting labor force.
–Republicans pounce.
–Obama touts private sector job gains, says “we’re headed in the right direction.” He also announces some broadband grants.
–Paul Krugman continues his war on short-term austerity with a biting column on mythical “bond vigilantes” and “confidence fairies.”
–Bruce Bartlett explains the origins of the idea that fiscal consolidation can grow the economy, concludes it probably doesn’t apply to current conditions, and argues we might as well try it out because more stimulus ain’t gonna happen.
–Dan Balz talks to Obama political gurus Plouffe and Axelrod to game out how the White House sees the midterms. A taste:
“I think the prospect of a Republican takeover — while not likely, but plausible — will be very much part of the dynamic in October, and I think that will help us with turnout and some of this enthusiasm gap,” said David Plouffe, who was Obama’s campaign manager two years ago and is helping to oversee Democratic efforts this fall. Still, he put all Democrats on notice, saying: “We’d better act as a party as if the House and the Senate and every major governor’s race is at stake and in danger, because they could be.”
–The House passed a war funding bill last night that actually sets congressional Democrats on a path to conflict with the White House over school funding. The legislation included a provision that would reroute funds from Obama education projects such as “Race to the Top” to pay for teacher salaries. The president says he’ll veto the bill if it still includes those cuts.
–USA Today does some Tea Party polling. The area in which they may exert the most influence is in sheer electoral energy, crucial in an off year:
An overwhelming 73% of Tea Party Republicans say they are more enthusiastic about voting this year than usual. Only half as many, 36%, of non-Tea Party Republicans feel that way.
That may be playing a big role in the overall enthusiasm lead the GOP has on Democrats.
–And Charlie Cook sees a Republican wave.
What did I miss?
UPDATE: Four incredibly depressing jobs graphics from the Center on Budget and Policy Priorities.