Going Back to Work

The jobless rate takes its biggest plunge in 24 years

"Great news!" crowed Ronald Reagan. "Spectacular . . . far greater than almost all previous forecasts," exulted his chief economic adviser, Martin Feldstein. Even Democratic presidential Front Runner Walter Mondale had to concede, "I am pleased, as are all Americans—but . . ."

The figures that prompted these effusions were indeed startlingly cheerful. After six months of disappointingly slow declines from its 42-year peak of 10.8% set last December, the U.S. unemployment rate suddenly plummeted in July. It fell to 9.5% of all...