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Low Unemployment Is Good. Bank of America Disagrees.

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With a few months remaining before voters go to the polls for the midterm elections, no one should be under the illusion that the economy is offering Democrats many political advantages. Elites are arguing about whether we’re in a recession. Maybe we are, maybe we aren’t, but the very existence of that debate is not a great sign. Meanwhile, after a long period in which they didn’t seem to want to talk about inflation, beyond halfheartedly pinning the blame for it on Russia’s invasion of Ukraine, the Democrats have only belatedly realized they can’t run from the issue and have renamed the Build Back Better Act as the Inflation Reduction Act (the bill itself got quite a reduction, too).

While these factors are far from ideal for Democrats, there are economic conditions worth highlighting—especially where the labor market is concerned. Federal fiscal relief helped engineer a swift recovery relative to the 2008 recession. The unemployment rate is low and employers are competing for talent rather than batting away job applicants. According to the Bureau of Labor Statistics, there are 0.6 unemployed persons per available job, which means there are about two job openings available for every unemployed person. And the recent boffo jobs report suggests that this part of the economy is still cooking with gas.

This is the sort of labor market that President Biden wanted to create, and for good reason: During his vice presidency, the Great........

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