Why the mediocre jobs numbers might be a good thing for Kamala Harris

On Friday, the Bureau of Labor Statistics released the latest jobs numbers, which showed that the US economy added 142,000 jobs. That is higher than the 99,000 jobs that ADP predicted, but still lower than most expectations.

The number may not seem that relevant, especially given that President Joe Biden is no longer running for re-election and most people blamed Biden for the bad economy. But it still means something.

Vice President Harris has sought to separate herself from Biden’s economic policies somewhat. In New Hampshire this week, she announced that she would support a 28 percent tax on capital gains for people earning a million dollars or more, which is about 10 points lower than Biden’s proposed 39.6 capital gains tax increase.

Harris has also emphasized the cost of housing during her campaign, touting a specific plan to help people buy a home. Polling shows that the economy continues to be the top issue for young people.

Number of jobs added is a bellwether of the economy, of course. But while the number of jobs was not stellar, it might be a tea leaf for a potential break for the vice president: a cut in interest rates.

Typically, presidents welcome a hot labor market. But increased consumer demand, combined with rising wages, creates an enviromment ripe for inflation.

Inflation and the cost of living has persistently plagued the Biden administration. Republicans have blamed Biden’s American Rescue Plan Act, his Covid-19 relief bill, for flooding the economy with money.

While the stimulus slightly contributed to inflation, it also came as the world economy attempted to get back on its feet after the pandemic. It’s also important to note that inflation has remained lower in the United States than elsewhere.