Heritage’s James Sherk says the employment estimates for August are being affected by the collapse of the housing bubble and the high cost of energy. The unemployment rate rose to 6.1%, a five-year high, primarily the result of large job losses among automobile manufacturers. He talked about the August employment numbers this afternoon on CNBC.
Sherk says there are a couple steps Congress could take immediately to help American workers with these pocketbook issues:
To get the economy back on its feet, Congress needs to address energy and food costs. Congress should increase the domestic supply of energy by allowing offshore oil drilling and the development of the oil shale in Colorado. These actions will increase the supply and reduce the cost of energy in the United States in the long term. Congress should also repeal the ethanol mandate that turns large portions of the U.S. corn crop into expensive auto fuel. Repealing the ethanol mandate would make gasoline less expensive. It would also make food more affordable.