Welcome to Thoughts on the Market.

I'm Michael Zeezes, Head of Public Policy Research and Municipal Strategy for Morgan Stanley.

Along with my colleagues bringing you a variety of perspectives, I'll be talking about the

intersection between U.S. public policy and financial markets.

It's Wednesday, May 12 at 10.30 a.m. in New York.

The $1.9 trillion COVID relief plan that was passed earlier this year was lauded by Democrats

as filling a critical economic need and criticized by Republicans as wasteful spending on disincentives

for employees to return to the workforce.

With that disagreement in mind, both parties were closely watching last week's jobs report.

And what did they learn from the disappointing number?

Well, in typical DC fashion, they took the report as evidence for their own view.

Democrats saw the weak jobs numbers evidence that they're still work to do to free the economy

from the grip of the pandemic, while Republicans cited as evidence that too many workers were

staying home to collect unemployment rather than fill open jobs.

The correct view may ultimately never be known, as supplemental unemployment benefits

end in September, right around the time several projections have the U.S. adult population

hitting herd immunity through vaccines.

But the disagreement is important because it underscores how difficult bipartisanship

continues to be in Washington.

The debate on the jobs report highlights how parties value different narratives around

policy tactics, even as they seemingly agree on policy goals.

With COVID relief, both parties agreed that extended unemployment due to the pandemic didn't

...