Remarks to Reporters on
Unemployment and the Economy
I
know you all think here this morning I'm here to talk about the unemployment
rate -- I am, and to make a general point about the economy, as well. Total
employment rose in July by 472,000, and to make a general point -- well, and
unemployment fell by 36,000. And that means the unemployment rate went down
another tenth of a point, to 5.9 percent, breaking for the first time in 8
years the 6 percent mark. And I think it's particularly important to point out
that this breakthrough of the 6 percent mark does not occur in a hyperinflated economy as it did in 1979 but is based
instead on sound growth and steady, long-term job creation.
Now,
the below-6-percent figure is remarkable news. I think all of you can recall
there were those who said that low rates of unemployment coupled with low rates
of inflation were simply unattainable. In addition, this is another record for
the total number of people employed in this country, again pointing to a solid
start for the economy in the third quarter, all of which goes to the larger
point that I want to make today. Yesterday in this room, the Chairman of our
Council of Economic Advisers, Beryl Sprinkel, went
through with you the economic statistics for this year and the revised numbers
for the past 3 years.
As
Chairman Sprinkel said, these figures indicate that
the economy is performing well at 1987 and performed even better than thought
during the preceding 3 years. Our trade balance is better. Employment is growing,
and unemployment falling. And after a temporary increase earlier this year,
inflation is returning to the 4 percent range that we've seen during most of
this expansion. All of this is excellent news for the American economy and for
the American people.
The
days of economic stagnation are not a distant memory to the American people.
They're vitally aware of the importance of maintaining
I
believe this is a message the American people are responding to. I believe they
want to check the tendency to overspend and overtax, and I believe that, as
they see continued economic growth in the months and years ahead, the American
people will support our efforts through the Economic Bill of Rights to
institutionalize sound growth and economic reform and to prevent the excesses
of big government that jeopardize prosperity.
And
now, having said that, I'm not going to take any questions, and I'm going to
stop interrupting Marlin's news briefing here.
Note: The President spoke at