Daniel Sutter is the Charles G. Koch Professor of Economics with the Manuel H. Johnson Center for Political Economy at Troy University and host of Econversations on TrojanVision. The opinions expressed in this column are the author’s and do not necessarily reflect the views of Troy University.
How did President Donald Trump bungle the handling of the Epstein issue? When will he give in?
Can Tuscaloosa and Mountain Brook sue over a tax policy set by the Alabama legislature?
Can Congress actually cut more spending?
All this and more on Alabama Politics This Week, on TV, radio, and online all over Alabama.
Mecca Musick is the CEO of 256 Today. Sign up for the 256 Today newsletter here.
Dale Jackson is a thought leader for Yellowhammer News and hosts a talk show from 5-9 a.m. weekdays on WVNN.
According to new data from the U.S. Department of Labor, the numbers showed that from April to March 2023 the U.S. economy added 818,000 fewer jobs than previously announced.
The new data shows that 2.1 million jobs were created in the U.S. in the past year, not 2.9 million as originally reported. Alabama officials are reacting to the released revision of the U.S. jobs report from March.
U.S. Rep. Gary Palmer (R-Hoover) reposted a post on X originally shared by the House GOP page, who blames “Kamalanomics” for the current state of the economy.
https://x.com/HouseGOP/status/1826270019543830793
U.S. Rep. Barry Moore (R-Enterprise) also blamed the weaker job numbers of the “Biden-Harris economy.”
https://x.com/RepBarryMoore/status/1826288565678194807
U.S. Sen. Tommy Tuberville (R-Auburn) accused the Biden administration of intentionally misleading the public on the issue.
https://x.com/SenTuberville/status/1826277286238372216
Tuberville also shared economic statistics on the rising cost of housing for Americans.
https://x.com/SenTuberville/status/1826301278667833427
Yaffee is a contributing writer to Yellowhammer News and hosts “The Yaffee Program” weekdays 9-11 a.m. on WVNN. You can follow him on X @Yaffee
U.S. Reps. Gary Palmer, Barry Moore, Jerry Carl and U.S. Senator Tommy Tuberville called out President Joe Biden and Vice President Kamala Harris for creating mounting and compounding problems in the nation’s economy.
The Dow Jones Industrial Average dropped more than 1,000 points Monday, stoking fears of a possible recession. The stock market losses come after the nation’s unemployment rate rose to 4.3% from 4.1% – up nearly a percentage point from the low of 3.4% early last year. The economy also only added 114,000 jobs, the slowest since late 2020 except for this past April.
“When you look at your 401k today, remember that Kamala Harris has spent the last three and a half years saying that #Bidenomics works,” Moore (R-Enterprise) said on X.
https://x.com/RepBarryMoore/status/1820465724349096353
Palmer said he agrees with Moore on the issue. “These are the results of #Bidenomics!” Palmer (R-Hoover) said.
https://x.com/USRepGaryPalmer/status/1820487556917793082
Palmer also made sure to blame Harris for what he called the “KamalaCrash.”
RELATED: Biden to blame for higher than expected inflation, Alabama’s GOP delegation says
“The #KamalaCrash is the result of weak leadership and poor decisions being made in the White House,” said.
https://x.com/USRepGaryPalmer/status/1820493679381127556
U.S. Rep. Jerry Carl (R-Mobile) said today’s indicators are clearly what the United States does not need four more years of.
https://x.com/RepJerryCarl/status/1820567835443126330
U.S. Sen. Tommy Tuberville argued that this is what happens when the federal government continues its out of control spending,” Tuberville said. “Joe Biden and Kamala Harris have recklessly spent trillions of taxpayer dollars, leading to the highest inflation in decades. Now, the stock market is PLUMMETING. We need steady leadership, not an incoherent President and a VP who can’t speak without a script.”
https://x.com/SenTuberville/status/1820492125668040832
Tuberville then mocked Biden for saying to the press recently that he “cured the economy.”
“Our economy wasn’t ‘cured,’ it was DESTROYED,” he said.
https://x.com/SenTuberville/status/1820550372500422692
Along with the losses in the Dow, the Nasdaq dropped 3.4% and the S&P fell 3%.
Yaffee is a contributing writer to Yellowhammer News and hosts “The Yaffee Program” weekdays 9-11 a.m. on WVNN. You can follow him on X @Yaffee
The incoming chair of the House Way & Means General Fund Committee is hopeful that state government revenues will increase in 2023, even though some are predicting a recession early in the coming year.
During a recent appearance on Alabama Public Television’s “Capitol Journal,” State Rep. Rex Reynolds (R-Huntsville) discussed what he expects next year’s economy will look like in the Yellowhammer State.
“We are seeing some early projecting about what 2023, 2024, into 2025 could look like,” Reynolds said, “and there are some that say maybe this recession will look like a growth recession. In other words, maybe we don’t drop below the line where we’re at and instead of having a 9% increase in the General Fund; maybe we see a 1% increase going into the 2024 session.”
The Alabama lawmaker said the current conditions in the state’s economy suggest they don’t have too much to worry about when it comes to the budget.
“I just see a confidence in spending in Alabamians, and yes, that is stood up some by federal dollars and inflation” he said. “But, I think Alabama’s going to hold strong.”
Reynolds believes the state’s revenue will continue to grow, but also has a warning for some of his colleagues.
“I’m giving words of caution,” he said. “I know some of my colleagues are adamant about a tax cut and I think my comment is to those individuals that I certainly would like to have them sitting in my seat, not just in the last few weeks as the budget chair, but with being on the General Fund for the last four and a half years, and understanding the needs of so many agencies … there’s still additional needs that are vital to service to all Alabamians, so I think we just have to be cautious with that.
“I certainly hope that if it’s the wishes of the body that we do some type of rebate, I hope it would be just that, a one-time rebate.”
While some Alabama Democrats would like to see the extra funds go toward an expansion of Medicaid in the state, Reynolds said it’s unlikely that would pass.
“I do not sense an overwhelming support of a broad expansion of Medicaid,” he said. “But … it’s ok for us to have the conversation and begin to look at small pockets, you know we did that last year, we did a small expansion to assist our ambulatory services in Alabama, and I think that was of great benefit. We’ve already had meetings about some of those small pockets, so I’m not going to be afraid to sit down and have the conversation, but we’ll have to weigh that out cautiously.”
Yaffee is a contributing writer to Yellowhammer News and hosts “The Yaffee Program” Weekdays 9-11 a.m. on WVNN. You can follow him on Twitter @Yaffee
With the state of Alabama seeing record revenue due partially from the American Rescue Plan Act (ARPA), some legislators have debated what the state should do with the extra money.
State Sen. Arthur Orr (R-Decatur) has gained some support for a proposed tax rebate, while others have argued for keeping the extra cash in reserve for a rainy day.
Recently on FM Talk 106.5’s “Midday Mobile,” Speaker Pro Tem Rep. Chris Pringle (R-Mobile) discussed what the Legislature could do with the extra money.
“[W]e’re going to try and spend it the best we can, but all of our expenses have gone up, Pringle said. “The cost of concrete’s going up; the cost of steel is going up; so we start building roads and bridges and all that’s expensive.”
The Alabama lawmaker emphasized the point that the ARPA funds will not last forever, which means the Legislature needs to be extra cautious on how to spend those dollars.
“[I]t’s all going away and it’s going to end, there’s no more ARPA money coming down,” he said. “This economy is going to crash, you can bank on it. And when it does, our revenue is going to plummet.
“We could go back to what we were faced with in 2012 when we had no money.”
Pringle reiterated that the extra revenue coming from the federal government also caused increasing inflation.
“We have a lot of money now,” he said. “And our revenue goes up and down, up and down, and with the federal government borrowing billions and billions of dollars and pumping into the economy and giving it to us, all this money we have is money that’s been borrowed by the federal government. You taxpayers are paying for this, they just handed it to us, but it’s also what’s caused inflation, so all of our costs are going up because of the inflation.”
He also argued that it’s much easier said than done when it comes to passing big changes through the Legislature.
“This new class is going to be interesting,” he said. “They’re pushing all kinds of ways to change things, and I tell everybody nobody was more full of it than I was when I first went in.
“And you find it’s easier to sit around with your friends and talk about it than it is to do it.”
Yaffee is a contributing writer to Yellowhammer News and hosts “The Yaffee Program” weekdays 9-11 a.m. on WVNN. You can follow him on Twitter @Yaffee
James R. Barth, Auburn University’s Harbert Eminent Scholar, recently detailed what constitutes an economic recession.
Questions and answers courtesy of Auburn University
Can you explain to us the role of two consecutive quarters of negative GDP in determining if the U.S. is in a recession? How accurate has this metric been?
I cover business cycles using data from 1857 to the present in my undergraduate course every spring. This includes the topic, “How do we know when we’re in a recession?” I show them the dates of all the recessions over the period, and the data typically shows that whenever real GDP has declined for two consecutive quarters, it turns out that we’d entered a recession.
But it isn’t that simple, is it? The formal determination of whether we’ve entered a recession isn’t made until well after two straight quarters of negative GDP have been recorded, right?
That’s true. Right now, it’s too soon to know. The reason is that the eight economists associated with the National Bureau of Economic Research, or NBER, who date business cycles are still examining the data.
The practice has been to rely on their definition of a recession, which is a significant decline in economic activity spread across the economy and lasting more than a few months. Unfortunately, their determination of recessions typically takes between four and 21 months.
One might compare their procedure to that of a doctor. When you go to your doctor, he or she might say: “There are a few possible reasons for your symptoms, and I think I know what’s wrong with you, but I need to conduct a few more tests to be sure.” Would you say: “No thanks, doc, I’ll go with your initial thoughts” rather than wait for the results of the tests your doctor needs to be sure of their diagnosis?
Remember that there are (at least) two key factors at work in making a final, data-based determination by NBER’s economists as to whether we are in a recession and, if so, when it began:
The first factor to consider is that these formal assessments are always made after two consecutive quarters of negative real GDP growth have been reported.
During the four months or so after that, the eight economists at NBER conduct a detailed analysis and deep-dive assessment of the country’s economic health, pulling in a much broader range of data than “mere” real GDP growth decline. These data points include unemployment claims, job growth, consumer confidence, etc.
The second factor pertains to the relative impact of other conditions that may skew the viability of real GDP decline alone as a clear indicator. This time around, these include the impact of the COVID-19 pandemic, the war in Ukraine, persistent supply chain disruptions and emerging political and trade issues with China, to name just a few.
Let’s take the first factor you identify — can you walk us through what goes into the more detailed assessment you describe? What other economic data beyond GDP are you referencing?
The comprehensive, research-based analysis of the economy the NBER relies on a host of economic statistics beyond real GDP growth.
These experts take into account data from the Bureau of Labor Statistics, the Conference Board and other respected sources to paint what they consider to be a clearer, more vivid picture of the U.S economy at any given point.
Let’s look at what some of these indicators tell us today:
Unemployment claims continue to log record lows for the first half of 2022 and have declined every week since August. We typically don’t see unemployment at these historically low levels — a little over 200,000 claims per week — during a recession.
Job openings are also at extraordinarily high levels, rising from 10.7 million job openings in June to 11.2 million in July. Recessions typically come with a reduction in available jobs, not an increase.
Consumer confidence is another measure economists use when determining whether we’ve entered a recession, and again, this metric today appears to contradict what normally occurs during a recession.
The Conference Board reported that consumer confidence rose from 95.3 in June to 103.2 in July, which is not what one might expect during a recession.
As you mention, these seemingly contradictory economic metrics are not the only factors these experts have to contend with as they consider whether or not we’ve entered a recessionary period. A wide range of global issues impacting the U.S. economy today are presenting unique challenges, aren’t they?
Yes, they are, and here’s where everything happening today needs to be considered according to the impact these economic factors have on people living at various income levels, socio-economic status, financial security, etc.
On the one hand, high employment, robust job growth and the corresponding wage rise might benefit everybody in the U.S., but a closer look says otherwise. If wages rise by 4% while the cost of goods and services go up by 8%, real wages go down, as does purchasing power.
Inflation, in particular, affects people in lower income brackets much more than those with higher earnings, a more stable financial footing and the ability to tap into savings or cut discretionary spending.
People in lower economic brackets don’t have that flexibility. Gas prices have come down over the past few months but remain high. The cost of food and other essential goods rose, and it isn’t clear how quickly they might come down or how much.
Everything you’re saying here points to uncertainty. There doesn’t appear to be precedent to look to for guidance regarding this historically divergent set of economic indicators. What can the federal government, including the Federal Reserve, do to help rectify today’s challenging economic circumstances, especially inflation?
I’m glad you included the federal government vs. the Fed alone, which is the agency most people look to for relief. The Fed can raise interest rates to help cool down economic growth and drive down inflation. The Fed is acting, and it is having some effect. But we need to look beyond the Fed and interest rates for answers.
The federal government’s recent spending surge certainly contributes to inflation despite claims to the contrary. In these difficult times, we need to think bigger.
Can you give us an example of what you mean by “think bigger”?
Sure. Consider this: We can’t have a healthy economy without healthy people. And yet, we devoted so little of our resources to preventing something as straightforward as the COVID-19 pandemic.
The government’s biggest failure — which the director of the CDC recently admitted — was the mixed messages regarding testing, masks, vaccines, etc. Get tested, don’t get tested. Wear a mask, don’t wear a mask. Get vaccinated, don’t get vaccinated. Even after all we’ve been through, we haven’t made much of a dent in resolving that uncertainty.
Furthermore, we should never forget that the critical resource in our country is human capital, and much more should be done to improve the health and education of our people.
One thing we might do — which would take a separate interview to flesh out fully — would be to allocate $50 billion or so to scientific research about how to best combat the next pandemic and deliver that science-based information to the public.
At the same time, we need to build the health care sector to be ready should the event occur. When you reduce uncertainty, you free up people to act in ways that more closely approach “normal times,” whatever that might be.
What else should we know about the current condition of the U.S. economy?
We need to remember that recessions, inflation, interest rate fluctuations, etc. are all global issues — virtually every economy in the world faces them. We are not alone.
That reminds me of an opportunity I had a few years ago to travel to Moscow to speak at The International Foundation for Socio-Economic and Political Studies. Sitting next to me on my panel was Mikhail Gorbachev, the former president of the Soviet Union, who passed away just a few days ago. We had a chance to chat one-on-one, and it was interesting to hear the views of the former leader of a country with economic drivers that are often markedly different than those in our own country — and quite a different perspective on human capital as well.
I was honored to represent Auburn and participate in substantive economic discussions on the international stage and bring that experience and those wide-ranging views back to my students here on the Plains.
James R. Barth is the Lowder Eminent Scholar in Finance at Auburn University’s Harbert College of Business, a Senior Fellow at the Milken Institute and a Fellow at the Wharton Financial Institution Center.
7. Major broadband expansion coming
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$26.6 million in grants have been awarded by Gov. Kay Ivey to expand broadband access in Alabama, meaning that there would be more broadband access for about 15,000 more households and facilities in the state.
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Ivey said in her announcement, “Alabama continues to make strides in providing reliable high-speed internet services for families and businesses throughout Alabama. I extend my thanks to legislators who realize the importance and the huge impact that access to broadband services mean for Alabama. I also thank the service providers for their willingness to be part of this mission to change the lives of Alabamians.”
6. The BCA will honor Shelby
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An “Evening for Progress” event will be held by the Business Council of Alabama as a way to honor the accomplishments and service of U.S. Sen. Richard Shelby (R-Tuscaloosa), and Senate Minority Leader Mitch McConnell (R-Ky.) has been announced as a guest at the event.
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BCA Board Chairman Mike Kemp has announced the event and stated, “Senator Shelby has been a visionary leader in forging a 21st century Alabama economy through pro-growth, pro-jobs policies and strategic investments in our state’s future. Senator Shelby’s determination and focus has transformed possibilities into life-changing realities for Alabamians in every corner of our state.”
5. Warren is concerned a recession is looming, but we are already there
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As interest rates have increased and inflation is still at a 40-year high, U.S. Sen. Elizabeth Warren (D-Mass.) has expressed concern on CNN’s “State of the Union” over the inflation rates leading to a new recession in the country’s economy.
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Warren said she’s “very worried about this because the causes of inflation … things like the fact that COVID is still shutting down parts of the economy around the world, that we still have supply kinks, that we will have a war going on in Ukraine that drives up the cost of energy, and that we will still have these giant corporations that are engaging in price gouging. There is nothing in raising the interest rates, nothing in Jerome Powell’s tool bag, that deals directly with those, and he has admitted as much in congressional hearings when I’ve asked him about it.”
4. The NASA Artemis launch is temporarily scrubbed
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NASA’s Space Launch System was scheduled to launch today. But because of an engine problem, the first of three flights in the Artemis missions was scrubbed. Even Bruce Pearl and Nick Saban offered praise for the mission, with Saban saying, “This first step to landing astronauts, including the first woman and the first person of color on the surface of the moon, is an inspiration to all of us. God speed Artemis and Roll Tide.”
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This flight is a test and is unmanned, aside from a few test dummies on board, and will orbit the moon before returning to earth. The two following missions will be manned, with the third mission landing on the moon. On Sunday, there was a thunderstorm while the rocket sat on the launchpad and was struck by lightning five times, but NASA has said that these strikes did not damage the rocket. NASA said the earliest availability for a launch is Friday.
3. You’ve heard this before, Trump is allegedly in trouble
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Lots of speculation over the weekend, former Trump lawyer Alan Dershowitz says Trump won’t be indicted but legally should be, Fox News’ legal expert Mike Davis says no crime was committed, and national security attorney Brandon Moss says, “I have finally seen enough. Donald Trump will be indicted by a federal grand jury.”
- All of this speculation is from the usual sources telling us what they see from their perspective, those insisting this is the end, have claimed the end was nigh a million times. But, if this is the time they actually indict him, U.S. Sen. Lindsey Graham (R-S.C.) offered a warning for where we might be headed, “there will be riots in the streets.”
2. Some in Alabama are happy to see loan forgiveness
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The student loan forgiveness plan that President Joe Biden has announced has been largely unpopular with Republicans. Alabama Democrats such U.S. Rep. Terri Sewell (D-Birmingham) had already expressed her glee saying, “This is welcome news for so many Alabamians who are being crushed by student loans,” and now Alabama Commission on Higher Education Executive Director Jim Purcell has stated his support for the plan and touted that it’ll help the state economy.
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Purcell said, “These individuals would no longer have to pay that obligation and perhaps would be looking for other things to spend on,” for how the plan will help the economy. Purcell later added that debt forgiveness might not have happened if not for the pandemic, saying, “I don’t think it would have been a conversation that would have been taken into action unless we had the pandemic.”
1. Medicaid expansion is concerning
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House Majority Leader Nathaniel Ledbetter (R-Rainsville) has discussed the possibility of Medicaid expansion being considered in the 2023 legislative session, expressing his concern over expansion costs.
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Ledbetter said that “The expansion of Medicaid scares me from the standpoint of we know how much it went up when I first went into office. We’ve seen every year incremental high increases in that in our budgets … so, I think we’ve got to be cautious about that because what will happen if it is all thrown on taxpayers’ lap and will wind up not being able to fund everything we need to fund. I do think there has to be some adjustments, and I think there are ways to do it.”
Inflation-adjusted (real) GDP dipped 0.9% in the second quarter (Q2) after declining 1.6% in the first quarter, igniting debate over whether we are in a recession. We may not be in a recession but rather degrowth.
A recession is a broad economic decline, the contraction phase of the business cycle. This differs from a slump concentrated in one sector or region of the country.
Economists have no strict definition of recession and typically use the determinations of the National Bureau of Economic Research’s Business Cycle Dating Committee. Recessions are declared retrospectively; for instance, because the Q2 decline was preliminary, final GDP may not show decline.
Yet as the American Institute for Economic Research’s Phil Magness observes, Federal programs employing a strict definition use two consecutive quarters of decline. Several European nations also use this standard.
How broad is the current decline? Of the four major components of GDP, two rose in Q2, consumption and net exports, and two declined, investment and government purchases. The decline in investment dominated the others. Digging deeper, the Commerce Department reports 32 subcategories of GDP, with 16 lower in Q2.
Investment declines often drive recessions. Durable goods purchases (e.g. appliances) also decline during recessions and fell in Q2. Both suggest a recession.
Treasury Secretary Janet Yellen contends that the strong job market shows we are not in a recession. Yet unemployment is a lagging variable; it starts rising after GDP is declining and hiring picks up only after recovery begins.
An economy entering recession is still strong because the business cycle is based on changes in and not the level of economic activity.
A quote from economist Arthur Okun, courtesy of Phil Magness, provides perspective on recession denial. Professor Okun, who served under Lyndon Johnson, observed, “When Administration spokesmen begin to split hairs about what a recession is, you can be sure there will be one.”
We are experiencing the declining living standards typical of recessions. Real per capita disposable income fell nearly 4% over the past year due to inflation. And the emergence of shortages suggests that this understates the decline.
Economists normally compare market-clearing prices at which goods are available for purchase. Products consistently out of stock suggest we no longer have equilibrium prices. Economic statistics often miss consumer harm from shortages.
For example, you may buy Pepsi for the same price if Coke is “out of stock” and not lower GDP. The time a frantic parent spends driving to find baby formula does not enter GDP. Nor does parents’ fear and dread over finding formula next week.
To estimate the actual decline in living standards, imagine how much prices would have risen to keep formula, new cars, and dog food in stock. Inflation would have exceeded 9%, yielding a larger decline in real income. Many Americans are already suffering the pain of a deep recession.
But this may not be a recession. Why? America’s economy has grown throughout our history; recessions are the brief (except for the Great Depression) exceptions. Declining living standards may be the new normal, and by design.
We may be experiencing degrowth, not a recession. The World Economic Forum defines degrowth as “shrinking rather than growing economies, so we use less of the world’s energy and resources and put wellbeing ahead of profit.”
Lower resource use is called sustainability. Proponents of a “Great Reset” to fundamentally change the world’s economic system are, I think, exploiting fears of cataclysmic climate change.
Markets are based on voluntary exchange. Buyers willingly pay a price high enough to induce suppliers to produce goods and services. Market economies generated the unprecedented increase in human well-being over the past 250 years. Sustainability advocates hate this production.
Their desired economic system lets those in charge (them) tell people what they can have. Achieving sustainability will require years of degrowth, so periods of falling output will no longer be exceptional. The Biden administration’s recession denial may tip off our transition to degrowth.
President Joe Biden has been busy promoting the “Inflation Reduction Act” this week after U.S. Senate Majority Leader Chuck Schumer (D-N.Y.) announced an agreement with U.S. Sen. Joe Manchin (D-W. Va.) on the $739 billion climate bill.
While Democrats argue the bill would help lower energy prices and reduce inflation, some Republican leaders across the country aren’t buying it.
Wednesday on WVNN’s “The Yaffee Program,” Alabama Public Service Commission (PSC) President Twinkle Cavanaugh said the new bill would increase energy costs in the Yellowhammer State.
“President Biden has really made everything in our country more expensive with his energy policies,” Cavanaugh said. “His energy policies are failing the Americans right now. And when you look at the fact that right now oil is $94 a barrel — under President Trump, it was somewhere in the ballpark, when he left office, around $50 a barrel. And, you know, we get gasoline from oil.”
The commission president emphasized that it did not have to be this way in Alabama or in the country as a whole when it comes to energy prices.
“Our country is suffering right now under this Biden economy,” she argued, “and I believe it is self-inflicted in many ways, and we could do a lot to change it.”
“The worst thing, though, that could happen is this Inflation Reduction Act,” Cavanaugh said. “[T]hat’s the bill that’s right now before the Senate, I call it the climate socialist boondoggle. It has nothing to do with an Inflation Reduction Act. I think anybody would be able to tell you that you don’t print more money or give away more money and expect to reduce inflation, the opposite is the case.”
The Alabama Public Service Commission regulates Alabama Gas Company and the Alabama Power Company, which Cavanaugh said were having to increase costs because of the current prices of oil and gas.
“Neither company has been given the ability to earn even one more penny in profit,” she explained, “so this is nothing about a profit. These are just pass-through prices for fuel, for natural gas, for coal, for things that are part of the fuel makeup when it comes to power, and it would just be natural gas when it comes to the gas companies.”
She reiterated that President Biden was responsible for the current inflation and most of the increases in energy prices.
“So what’s happening is the Biden administration is making everything more expensive,” she declared, “and it’s putting a real burden on consumers and the citizens in Alabama.”
The Inflation Reduction Act is a climate socialist boondoggle.
It spends:
$369B on an environmental wishlist
$300B on green loan guarantees
$80B to hire IRS agents
$60B for environmental justice initiativesIts name is a lie. Its harm will be real.
— Twinkle Andress Cavanaugh (@TwinkleforAL) August 1, 2022
Yaffee is a contributing writer to Yellowhammer News and hosts “The Yaffee Program” Weekdays 9-11am on WVNN. You can follow him on Twitter @Yaffee
Radio talk show host Dale Jackson and CEO of 256Today Mecca Musick take you through Alabama’s biggest political stories, including:
— We are clearly in a recession, so why are some pretending otherwise?
— Will any Alabama politicians call for a return to masking?”
— Why is the federal government looking to withhold student lunches to push their transgender issues in the nation’s schools?
Yellowhammer News’ Dylan Smith joins the show to discuss the Alabama Legislature’s chances of ending the grocery tax, the Alabama delegation’s response to the recession and everything else happening in Alabama politics this week.
Jackson closes the show with a “Parting Shot” directed at the politicians who tout how great it is that gas prices have dropped a mere 50 cents, leaving them at near all-time highs.
Watch:
Dale Jackson is a contributing writer to Yellowhammer News and hosts a talk show from 5-9AM weekdays on WVNN and on Talk 99.5 from 10AM to noon.
Earlier this week, U.S. Sen. Joe Manchin (D-W. Va.) announced a deal with Senate Majority Leader Chuck Schumer (D-N.Y.) on the $739 billion climate package entitled the “Inflation Reduction Act.”
Many were surprised by the announcement, given Manchin has repeatedly spoken out against recent Democratic spending bills over concern about inflation.
Friday on WVNN’s “The Dale Jackson Show,” U.S. Rep. Mo Brooks (R-Huntsville) said he wasn’t surprised the West Virginia Democrat announced his support of the latest spending bill.
“It wasn’t a surprise to me,” Brooks said, “but it was the opposite of the marketing that was making Joe Manchin look more reasonable, more conservative in a state, West Virginia, where conservatism rules. So, it was all about political marketing, and it’s very troubling that the public has not been able to figure out the deception that’s associated with this marketing. But by golly, it works.”
Despite the clever name of the bill, Brooks argued the spending plan would just increase the deficits and the national debt.
“Of course, it all has to be marketed to make the public think that it’s good,” he said. “I don’t see another $700 billion in deficits doing America good. I think it’s bad, but we have some upside-down economics that emanates from Washington, D.C., and you’re seeing it now with our 9% inflation rate. All of that is caused by bad public policy coming from Washington, D.C.”
The congressman warned that this latest bill was still radical even though many Democrats were trying to present it as a moderate compromise.
“It’s all about marketing,” he argued. “If you have liberals, leftists, saying, ‘Hey, this isn’t a very good bill because it’s not liberal enough,’ that makes the rest of the Democratic conference look more moderate — i.e., more electable in states that don’t want left-wing socialist policies.”
Brooks also reacted to Democrats claiming the American economy wasn’t currently in a recession.
“Since the creation of the gross domestic product formulas and the governments keeping track of those things, two consecutive quarters of declining growth has been defined as a recession. It’s a matter of definition,” he explained. “And now, the Democrats are trying to say, ‘Oh no. That definition doesn’t apply anymore.’ Well, it applies if a Republican is in office, but not when a Democrat is in office, but that’s the gamesmanship. That’s the marketing. That’s the deceptions. That’s the corruption of the public policy debate.”
He also blamed the mainstream media for going along with the Biden administration’s narrative on the economy.
“It’s pure, unadulterated propaganda,” he declared, “and the media is a part of the propaganda effort of the socialist wing of society. It really is as simple as that, but until the voters do a better job of understanding the truth and what’s really going on, then we’re going to continue to slip and slide as a country into the dustbin of history, and we’re headed in the wrong direction.”
Yaffee is a contributing writer to Yellowhammer News and hosts “The Yaffee Program” Weekdays 9-11am on WVNN. You can follow him on Twitter @Yaffee
After about a week of pretending there was no definition for “recession” that society had settled on (there is), the economic data showed that the United States was, in fact, in a recession.
The White House couldn’t talk its way out of it, and now they are just outright denying it. Some in the media have decided to run with the messaging regardless of how tedious it is.
Watch:
Dale Jackson is a contributing writer to Yellowhammer News and hosts a talk show from 5-9AM weekdays on WVNN and on Talk 99.5 from 10AM to noon.
7. Monkeypox leads to WHO to ask men who have sex with men to limit their partners
- In what seems like a non-controversial move, the World Health Organization has announced that gay men should reduce the number of sexual partners to slow the spread of the monkeypox virus. The virus is spreading predominantly among gay and bisexual men, with the WHO noting that 98% of 18,000 recent monkeypox cases had been among men who slept with other men.
- The suggestion this move is homophobic has been tossed about, with Democrat California State Senator Scott Wiener claiming that suggestions like the WHO’s would actually lead to more people catching monkeypox. He cited the original HIV outbreak. Wiener tweeted, “Lots of sex shaming of gay men around monkeypox. The same shaming we saw in the 1980s [regarding] HIV. Lecturing people not to have sex isn’t a public health strategy. It didn’t stop HIV — it made it worse — & it won’t stop monkeypox. What will work is vaccination, testing & education.”
6. Joe Biden met with more than a dozen of Hunter’s business contacts
- President Joe Biden has been known to deny any involvement in his son Hunter’s business dealings. He said in 2019 that he had “never spoken to my son about his overseas business dealings.” Despite this, more reports continue to emerge that contradict the president’s statements.
- While he was vice president, Biden met with at least 14 people who were also involved in business dealings with Hunter. Some of the individuals were from Mexico, Ukraine, China, Kazakhstan and the United States, with some of these interactions being revealed by emails sent or received by Hunter. Additionally, the DOJ is now accused by a whistleblower of burying negative information about this case.
5. Justice finally served
- Last night, convicted murderer Joe Nathan James, Jr. was executed after Governor Kay Ivey had announced that she would not stay the execution. The family of the victim, James’ ex-girlfriend, whom he murdered in 1994, has been publicly outspoken against James being executed.
- Ivey said, “My staff and I have researched all the records and all the facts and there’s no reason to change the procedure or modify the outcome. The execution will go forward.” Alabama Attorney General Steve Marshall had previously commented about the jury’s decision to convict James saying, “it’s our obligation to ensure that justice is done for the people of Alabama.”
4. Opportunity to confront China squandered
- U.S. Representative Gary Palmer (R-Hoover) has voted against the “CHIPS and Science Act,” saying that the legislation was an “unpaid-for bill” and “a wasted opportunity to combat aggression by the Chinese Communist Party and ignores the record levels of inflation American families are facing.”
- Palmer discussed the importance of a bill similar to this one and building more semiconductors but added, “[T]his bill is another example of special interests using legislation to promote their own financial benefit at the expense of American families.”
3. D.C. mayor asking for help to deal with migrants
- Many cities across the country have been accepting migrants from the southern border by the busload, and now, Washington, D.C. Mayor Muriel Bowser (D) is asking for help from the National Guard in this “humanitarian crisis.” Some of the buses that arrived in the area were originally in Texas but sent to the country’s capital by Governor Greg Abbott (R).
- Bowser had previously stated that her city was open and ready to accept migrants but is now saying that those being sent had been “tricked.” She added that the busloads of people were “a federal issue that demand a federal response.” Abbott was happy to see the mayor of D.C. on board, stating, “Washington D.C. finally understands what Texans have been dealing with every single day, as our communities are overrun by thousands of illegal immigrants.”
2. Alabama utility costs are on the rise
- Inflation and fuel costs have now impacted utility costs in Alabama, with a 41.6% increase in overall energy costs, according to the U.S. Bureau of Labor Statistics (BLS). While there’s been a 9.1% price increase nationally, the South has seen a 9.8% increase in overall costs.
- Alabama Power’s Alyson Tucker advised, “The rising cost of fuel has necessitated an adjustment to our rate.” According to the BLS, electricity costs have increased by 13.7% and natural gas has seen an increase of 38.4%. The Tennessee Valley Authority’s customers are seeing price increases as well, with the adjustment costing around $18 per month for each customer.
1. U.S. in a recession
- For the second consecutive quarter, the United States saw a decline in gross domestic product (GDP), with a decline of 0.9% in the third quarter. By definition, the second consecutive quarter seeing a decrease means that the U.S. economy is currently in a recession.
- While President Joe Biden has denied a recession, U.S. Senator Richard Shelby (R-Tuscaloosa) has commented, “Our economy shrank for a second straight quarter. Couple that with 40-year high inflation levels, and what are we left with? A recession. President Biden doesn’t want to admit it, but you can’t argue with facts.” U.S. Rep. Mike Rogers (R-Saks) also commented, “Under Biden, Americans have been hit with record-high inflation, sky-high gas prices, and now a recession.”
The U.S. growth domestic product (GDP) report published on Thursday shows that the nation’s economy contracted for the second consecutive quarter this spring, which meets the technical criteria for a recession.
According to the U.S. Department of Commerce’s newly released economic figures, the GDP shrank by 0.9% from April through June.
Even amid soaring gas prices and rising inflation, President Joe Biden for weeks had downplayed concerns that the U.S. economy could enter a recession. Additionally, to the ire of many market economists, the White House has taken exception to what officially constitutes a recession.
In a prepared statement issued on Thursday, the president continued to maintain that the nation’s economy was not in recession.
“Coming off of last year’s historic economic growth – and regaining all the private sector jobs lost during the pandemic crisis – it’s no surprise that the economy is slowing down as the Federal Reserve acts to bring down inflation,” stated Biden. “But even as we face historic global challenges, we are on the right path and we will come through this transition stronger and more secure.”
In reaction to the GDP report, a number of Alabama Republican elected officials took aim at the Biden administration over its progressive spending agenda.
Gov. Kay Ivey stated her intentions of ensuring the Yellowhammer State’s economy remained “resilient” in the face of national economic uncertainty.
“America is in recession. Inflation is soaring, gas prices are up over 50% in the last year, interest rates are through the roof and government spending is out of control,” advised the governor in a statement to Yellowhammer News. “Now, as of today, the United States just posted two consecutive quarters of negative GDP growth – this is economists’ traditional definition of a recession.”
“Poor economic policy has dire consequences, and no matter how they want to try to spin it, the truth is that Americans are hurting,” added Ivey. “Even so, Alabama’s economy remains resilient, and I will continue to do all that I can to help Alabamians find relief, while being measured, not reckless as this Administration has been.”
Regardless of what the Biden administration deems to be a recession, U.S. Sen. Richard Shelby (R-Tuscaloosa) and U.S. Rep. Jerry Carl (R-Mobile) declared that the numbers released in the GDP report could not be disputed.
Our economy shrank for a second straight quarter. Couple that with 40-year high inflation levels, and what are we left with? A recession. President Biden doesn't want to admit it, but you can't argue with the facts. https://t.co/a90arOtaW5
— Richard Shelby (@SenShelby) July 28, 2022
We are headed into a recession, despite the Biden admin's attempts to change the definition of the word. https://t.co/CmE7KIXURN
— Rep. Jerry Carl (@RepJerryCarl) July 28, 2022
U.S. Rep. Mike Rogers (R-Saks) lamented Democratic congressional leadership’s “out-of-control socialist spending” policies, which he indicated had exacerbated economic hardship.
“Today’s news is proof that Joe Biden and his administration lied to the American people about the risks of a recession,” proclaimed Rogers. “On day one of his administration, Biden put the American people last by dismantling President Trump’s successful economic policies.”
“Under Biden, Americans have been hit with record-high inflation, sky-high gas prices, and now a recession,” added the congressman. “Biden, Pelosi, and Schumer have only worsened the economic crisis facing Americans with their out-of-control socialist spending and anti-American energy policies. Biden can’t lie his way out of this – we need to get our economy back on track.”
U.S. Rep. Robert Aderholt (R-Haleyville) asserted that Americans “aren’t buying” the Biden administration’s narrative that the economy was not in a recession.
“We have now had two consecutive quarters of negative growth, the very definition of a recession,” noted Aderholt. “The Biden Recession we all knew his economic policies would create, is officially here. The White House and the national news media are trying to spin this as if it’s not a real recession. But the American people aren’t buying it.”
U.S. Rep. Gary Palmer (R-Hoover), chair of the House Republican Policy Committee, slammed Senate Democrats’ $700 billion spending package, which includes a litany of progressive measures.
And yet, Washington Democrats are pursuing a new $700 billon dollar partisan spending bill that will further damage our economy. https://t.co/M9ubxRhdB4
— Gary Palmer (@USRepGaryPalmer) July 28, 2022
U.S. Rep. Barry Moore (R-Enterprise) said that congressional Democrats were “doubling down on dumb” in their attempt to pass an additional costly spending measure.
“No blame game, moving goalposts, or dishonest justifications from this administration and their media allies will fool American families – we are in a full-blown recession that is wiping out the unprecedented economic gains of the Trump administration,” declared Moore. “Unfortunately, Democrats are doubling down on dumb this week with their reconciliation bill that expands their own power through more federal government overspending and Green New Deal policies that leave us more beholden to overseas adversaries.”
“Joe Biden, Nancy Pelosi, and all the Washington Democrats who vote in lockstep with them are to blame for this recession, and the pain won’t end for American families until Washington has new leadership that serves Americans and not itself,” concluded the congressman.
Dylan Smith is a staff writer for Yellowhammer News. You can follow him on Twitter @DylanSmithAL
7. Republicans call on Biden to take a cognitive test
- In the U.S. House of Representatives, a group of 54 Republicans wrote a letter calling for President Joe Biden to undergo cognitive testing due to questions over his mental fitness. U.S. Representative Ronny Jackson (R-Texas) leads the group in the letter.
- In the letter, the representatives said they were writing “to express concern with your current cognitive state and to urge you to submit to a cognitive test immediately.” They added, “We believe that, regardless of gender, age, or political party, all Presidents should follow the example set by former President Trump to document and demonstrate sound mental abilities. While you have largely brushed aside these assertations as partisan political attacks, the left-leaning New York Times recently published an article outlining all of this in great detail. According to the New York Times, the increased scrutiny surrounding your cognitive state has been fueled by your recent public appearances.”
6. Alabama teacher was doing her job while teaching about religion
- A teacher at Moulton Elementary has been accused of promoting Christianity back in April 2022 while discussing the Easter holiday with first-grade students, according to the Freedom From Religion Foundation. The foundation requested that the issue be investigated in a letter to Lawrence County Schools Superintendent Jon Bret Smith.
- The letter alleges that the teacher “taught students about Jesus Christ and Easter, and also provided students with religious coloring book pages to take home.” Smith denied the need for an investigation and said, “The teacher was doing her job. Every teacher in the state of Alabama is charged to thoroughly teach the course of study. That is covered under two objectives in the first grace course of study.” Smith’s statement references Objective 11 and 12, which are to teach about a variety of issues, including culture and religion in the community.
5. Bomb threats called into colleges across the state
- According to local officials, many colleges and universities across the state were evacuated on Thursday due to bomb threats called in for specific buildings. In North Alabama, Calhoun Community College and the University of Alabama in Huntsville (UAH) were both impacted by the threats.
- Others who issued alerts and evacuated buildings were Shelton State Community College, Wallace Community College, Jefferson State Community College and Auburn University. Some facilities, such as Auburn and UAH, were able to quickly end emergency notices. The situation is currently under investigation.
4. Garland won’t rule out prosecuting Trump
- During an interview with NBC, U.S. Attorney General Merrick Garland discussed the current findings of the January 6 committee. He also didn’t rule out possibly prosecuting former President Donald Trump for his involvement in the events.
- Garland said, “We intend to hold everyone, anyone who was criminally responsible for the events surrounding Jan. 6, for any attempt to interfere with the lawful transfer of power from one administration to another, accountable, that’s what we do.”
3. Tuberville would be willing to testify with January 6 committee; Says opinion remains unchanged
- U.S. Senator Tommy Tuberville (R-Auburn) revealed that he would be willing to testify before the House committee investigating the January 6 riot. He also clarified that his position on the election had not changed.
- Tuberville said none of the committee’s findings that he had seen “would change my mind on anything that I’ve voted on.” Alabama’s junior senator was one of a handful of senators who voted not to certify the election results of 2020.
2. Manchin signs on to massive spending bill with a ridiculous name
- For the entirety of President Joe Biden’s term, U.S. Senator Joe Manchin (D-W.Va.) has stood in the way of some of the more reckless spending on behalf of the Democrat Party. This includes repeatedly killing the “Build Back Better” plan over inflationary concerns. That is now over, as Manchin has cut a deal with the Biden White House and will now support the “Inflation Reduction Act of 2022.”
- The bill will surely harm the economy by raising taxes and increasing spending, while somehow stopping inflation. The bill still needs the support of U.S. Senator Kirsten Sinema (D-Ariz.), and the Senate Parliamentarian must sign off, so the pathway to passage is not guaranteed yet. U.S. Senate Minority Leader Mitch McConnell (R-Ky.) reacted to the news by saying, “Democrats have already crushed American families with historic inflation. Now they want to pile on giant tax hikes that will hammer workers and kill many thousands of American jobs. First they killed your family’s budget. Now they want to kill your job too.”
1. Business owners have a negative outlook on the economic situation
- New survey data has been released by the University of Alabama that showed a majority of business leaders in Alabama had a negative view of the state and national economic situation. This data was based off the Alabama Business Confidence Index conducted by the university.
- For the third quarter of 2022, the confidence index was at 47.3, which dropped from the third quarter of 2021 which was at 67. For the state confidence index, it was at 41.1. Nationally, the index was at 29.3. For a positive outlook, the index has to be at least 50 points.
7. Rash of overdose deaths leads to free fentanyl test strips
- A fentanyl death spike in one Alabama county has led to a non-profit procuring fentanyl test strips to provide to recreational drug users. The strips can be used to test for fentanyl in unregulated drugs, which have been found at the scene of some of the overdoses.
- Madison County coroner Tyler Berryhill called the Partnership for a Drug-Free Community after six residents died from Sunday to Tuesday of last week, and now, illegal drug users can pick up a test strip and test their drugs before they use them. The state just legalized these strips earlier this year, and they are available around the state.
6. New York preparing for migrants to be sent to the state
- As migrants from the southern border have been placed in various areas of the country, New York City Mayor Eric Adams has held a press conference where he discussed how receiving migrants would impact the city.
- Adams advised, “Our schools are going to be impacted. Our healthcare system is going to be impacted. Our infrastructure is going to be impacted.” Adams also emphasized that “everyone” would be impacted by this.
5. There is a Libertarian candidate in Alabama’s U.S. Senate race
- In the U.S. Senate race in Alabama, Republican candidate Katie Britt is the clear frontrunner against Democratic candidate Will Boyd, but a Libertarian candidate by the name of John Sophocleus has been announced.
- Sophocleus was the nominee for governor in 2002 for the Libertarian Party in Alabama. Sophocleus has made it clear that his focus is on taxes, spending and the economy. He outlined, “Trump was a government Democrat running as a Republican. The latest bureaucracy: Space Force. What was Trump thinking? Reagan talked a good game, but he was a big spending Democrat from California who grew the size of government and greatly increased the debt.”
4. Battle still confident Space Command is coming
- Huntsville Mayor Tommy Battle has maintained that the U.S. Space Command headquarters would be coming to the Redstone Arsenal and recently reaffirmed his confidence in an interview on Alabama Public Television’s “Capitol Journal.”
- Battle said that he understood the issues Colorado had with moving the headquarters but added, “[W]e’re still going to be working with Colorado Springs. There are a couple of commands that we share with them. We’ll still be sharing with them when Space Command comes in.” Battle went on to say, “Huntsville will be the best place for Space Command to be, and we will be able to provide years and years of protection for the people of the United States of America in doing that.”
3. Jerry Carl: Biden’s Saudi visit is ‘embarrassing’
- U.S. Representative Jerry Carl (R-Mobile) criticized President Joe Biden’s recent trip to Saudi Arabia, where he met with the Saudi prince. Biden had previously said that the same prince was responsible for the death of journalist Jamal Khashoggi and he would make him a pariah.
- Carl declared, “I thought it was embarrassing. I mean, to call the prince out as a murderer and then go over to ask him for help – I think that shows some tremendous weakness, tremendous weakness.”
2. Global demand has decreased, so gas prices have fallen
- Falling gas prices have been praised by President Joe Biden and his administration, but the falling prices are mostly due to a decrease in global demand that’s lowered the price of oil, according to most recent reports.
- Supply of fuel has also increased, according to AAA spokesman Clay Ingram, who also said 2022 “is just so different and wacky and unusual.” He continued, “You don’t know what’s going to happen really so having this much of a drop is unusual but again having record prices like we have had over the past few months is not usual either.”
1. We’re likely headed for a recession, but White House denies it
- The White House has been accused of attempting to change the definition of what an economic “recession” is to avoid a recession being declared, and President Joe Biden has been directly questioned on the issue and said, “We’re not gonna be in a recession.”
- Despite experts warning that the United States economy is heading for a recession this year, Treasury Secretary Janet Yellen stated, “This is not an economy that’s in recession. We’re in a period of transition in which growth is slowing, and that’s necessary and appropriate.”
Because of higher interest rates, high gas prices and increasing inflation, some economists are predicting a recession in the U.S. economy in the near future.
Any kind of economic downturn could affect the amount of tax revenue coming into a state, which could put state governments in a tough situation.
Friday on WVNN’s “The Dale Jackson Show,” State Sen. Arthur Orr (R-Decatur) said Alabama’s state budgets were still in “excellent shape” but warned that no one knew how long a recession could last.
“Right now … we’re in excellent shape,” said Orr, “both the general fund and the education budget, but how bad will this predicted recession hit us? We’re certainly ready for a storm, but to the extent and length of it, no one knows how bad it will be. But we’re certainly ready for this storm ahead.”
The state senator warned that the budgets could handle a downturn for “a usual predictable period of time” but not forever.
“[I]f it goes on for years and years,” he continued, “where we have stagflation and economy in the brink, in the drink, just struggling for years, we too will struggle because the revenues will fall and the costs will certainly increase.”
Orr advised that there was still some good news in the economy, especially in Alabama, but that it could change quickly.
“The jobs report just came out this morning,” he explained, “employment is level, lots of new jobs created. So, does that mean inflation continues on? There’s just a lot to be determined in the months ahead, but we are ready for a storm for sure.”
Alabama is also slated to receive another $1.1 billion from the America Recuse Plan Act (ARPA), which could mean the legislature would have a special session to determine how to spend the federal dollars, although Orr said that was not likely.
“I think it gets punted until after a new legislature is impaneled after the election,” he said. “I don’t see it happening before then. It certainly could change, but I think it gets pushed out probably sometime in January of next year, if I had to guess.”
He argued that lawmakers needed to be smart and strategic in spending the ARPA funds.
“A lot of what we’re waiting on is still the federal guidance with the ARPA funds,” he lamented, “and what we need to be careful of in Alabama is this is one time money, so local governments, schools, etc. do not need to bake this into their annual operating budget and then look to the states for continuing revenue to continue to fund those operations that they funded with one time money.”
Yaffee is a contributing writer to Yellowhammer News and hosts “The Yaffee Program” Weekdays 9-11am on WVNN. You can follow him on Twitter @Yaffee
7. The FBI has some explaining to do
- It is becoming clear that former Trump administration national security advisor Michael Flynn was targeted by officials at the Federal Bureau of Investigation after newly-revealed notes concerning the investigation show that agents were trying to entrap him and get him fired from his position.
- In the notes, Bill Priestap, the former head of the FBI’s counterintelligence division, asks, “What’s our goal? Truth/admission or to get him to lie, so we can prosecute him or get him fired?” In another, Priestap appears to understand the risks of the interview, adding, “Protect our institution by not playing games,” and, “If we’re seen playing games, WH will be furious.”
6. America’s economy had a bad quarter; It is going to get worse (more…)
Radio talk show host Dale Jackson and Dr. Waymon Burke take you through this week’s biggest political stories, including:
— Has Alabama Governor Kay Ivey already made up her mind on tolls?
— Is Tommy Tuberville running away with the U.S. Senate race right now?
— Is it unseemly for Democrats to talk down the economy? (more…)
According to a study released recently by The Pew Charitable Trusts, Alabama’s state tax revenues have finally risen above its pre-recession peak.
The Yellowhammer State joined South Carolina and Arizona with meeting that milestone for the first time in the third quarter of 2018. Alabama’s Q3 tax revenues last year were o.6 percent higher than its pre-recession high in 2008.
Pew, a non-partisan, nationally respected group, also gave credit to President Donald Trump’s signature tax cuts for giving places like Alabama a needed shot in the arm when it came to their state tax revenues. (more…)
Governor Ivey announced today that Alabama’s preliminary September unemployment rate is 3.8%, matching the rate of April 2007, which is the lowest rate in recorded history.
This is down from August’s rate of 4.2%, and well below September 2016’s rate of 6.0%.
Governor Ivey released a statement on this milestone, stating:
“We’ve been working extremely hard over the past six months to bring Alabama’s unemployment rate down, and today’s news shows that our efforts are paying off. This is truly a historic day, as we announce that Alabama’s unemployment rate is the lowest it has ever been. When it comes to job creation, we are doing the right thing and momentum is on our side in Alabama. But, we won’t let up and we will continue recruiting new businesses and encouraging existing firms to expand. We can’t and won’t slow down just because we’ve reached this milestone.”
2,068,594 people were counted as employed in September, compared to 2,057,360 in August, and 2,045,762 in September 2016. September’s rate represents 82,678 unemployed persons, compared to 90,756 in August and 131,201 in September 2016.
Alabama Labor Secretary Fitzgerald Washington added:
“Nearly 23,000 more people are working now than last year and the number of unemployed is down by almost 50,000. Those numbers represent real workers, with real families, and indicate real progress in our economy. Alabama’s employers continue to add jobs, supporting more than 2,011,000 positions this month, beating yearly job growth projections by 28,400 only nine months into the year. We remain hopeful that this wonderful progress continues throughout the rest of the year.”
Wage and salary employment increased in September by 7,100 people. Monthly gains were seen in the government sector (+5,900), the trade, transportation, and
Industries showing gains included the government sector (+5,900), trade, transportation, utilities (+2,800), and construction sector (+1,200), to name a few. Over the past year, wage and salary employment increased 28,400, with gains in the leisure and hospitality sector (+7,400), the professional and business services sector (+6,600), and the construction sector (+6,300), among others.
“All 67 counties experienced drops in their unemployment rates, both over the year and over the month, and for the first time in a decade, no county has a rate in the double digits,” said Washington.
Counties with the lowest unemployment rates include Shelby County at 2.4%, Marshall and Cullman at 2.8%, and Madison, Lee, and Elmore Counties at 2.9%.
Major cities with the lowest unemployment rates are: Vestavia Hills at 2.2%, Alabaster and Homewood at 2.3%, and Hoover at 2.4%.
Major cities with the highest unemployment rates are Selma at 7.0%, Prichard at 6.4%, and Bessemer at 4.7%.