Jean Schmidt's 'Roaring' Economy vs. Feds 'Jobless Recovery'

CINCINNATI (TDB) -- U.S. Rep. Jean Schmidt is out with a new press release that seems to shout from the rooftops that "our nation's economy is unidisputably robust, resilient and roaring." The OH-02 Republican from Clermont County represents counties with some of the highest jobless rates in the state -- good thing the economy is roaring.

Schmidt contends the Federal Reserve Bank supports her rosy view. But does it? An "Economic Trends" report issued this week (February 7) by the federal reserve bank of Cleveland -- a bank with a branch in downtown Cincinnati, a town Schmidt serves as congresswoman -- reads far gloomier. In fact, the report describes the fix Ohio is in as a "jobless recovery."

Schmidt sees things differently than the fed's economists. "As I've said many times before, we owe this good news to sound pro-growth economic policies and historic tax relief legislation that continues to fuel our economy," she said.

So it is "good news" that we have a "jobless recovery" in Ohio. That's a massive disconnect between partisan spin and the fed, which reported:

"The glaring difference between nonfarm employment for 2001-07 and the average employment growth cannot be explained by atypical recession or recovery; real GDP stayed within normal bounds throughout the cycle. Nor can it be explained in the unusually large benchmark revisions in nonfarm employment for April 2005 through March 2006 (seasonally adjusted from 2002 onward) from the BLS; even the upwardly revised data show employment far below normal levels. Thus the current expansion remains a 'jobless recovery'"

The entire fed report, with charts, is HERE, and it focuses on the chunk of United States that Mrs. Schmidt is elected to speak for in the U.S. House. Check out her views on the "roaring economy".

The difficulty for Schmidt is that Ohio and other portions of the industrialized Midwest have not prospered in this economy. The state is struggling with the loss of its manufacturing base, a fact that seems to elude the U.S Rep from OH-02 where Ford Motor Co. is closing a tranmission plant. Even President George W. Bush has pointed out that we're not doing too good right now.

[UPDATE: Others in the Ohio blogosphere are scratching their heads about Schmidt's latest blast today. A Democratic blog has linked to a GOP-leaning blog, not something one sees in the normal course of political discourse. Schmidt might turn out to be a decent lawmaker if she can find her footing. She needs to shut up on the economy, though. She represents the Ohio River Valley, and she needs to figure that out. I have a guess that the latest missive was not prepared by Schmidt herself, but probably was some kind of handout that she regurgitated. Whoever gives her that stuff is getting her into trouble. Rob Portman, her predecessor, would have flushed it.]

OH-02's Rep. Jean Schmidt: More Egg On Her Face?

CINCINNATI (TDB) -- U.S. Rep. Jean Schmidt's official House Web site has deleted her weekly column, a report that praised economic progress in the U.S. Good move. The head of the Cleveland Federal Reserve Bank is offering sobering news about Ohio -- today there are fewer jobs in the state than six years ago during the last recession.

Schmidt's withdrawn column extolled Republican policies and said unemployment had fallen to 4.5% across the nation. She released it on the same day Ohio's jobless rate increased.

Schmidt was wise to jerk her ill-timed economic musings off the Web. The data about Ohio from the Federal Reserve Bank is not upbeat. Cleveland Fed President Sandra Pianalto says Ohio -- the state Schmidt represents in Congress -- still isn't back to where it was before the last economic downturn.

''Throughout the current economic recovery, job creation in Ohio has been among the worst of the 50 states. And as difficult as Ohio's situation is, Dayton has faced even greater challenges. In fact, both Ohio and the Dayton area have fewer jobs today than they did six years ago during the last recession. Many people think that manufacturing trends can account for this state of affairs, but that is not the whole story," Pianalto said.

Her entire speech is an excellent review of what's happening nationally and regionally. But this is the line that bears repeating: "Ohio and the Dayton area have fewer jobs today than they did six years ago during the last recession."

The Cleveland fed chief said she can see only one cure. "In a global economy that puts an increasing premium on highly skilled workers, the most successful regions will be those that improve their knowledge stocks. Our region can have an economic future that is as enriching as our past, but only if we increase our investment in innovation and education -- the two key factors in promoting economic success."