Stagnant Wages, Slowing Job Growth
Concerning news. Today, as American workers’ wages continue to stagnate, the Department of Labor reports that job growth has slowed in July – while the wealthiest 1 percent and big corporations continue to hoard the benefits of the GOP Tax Scam for the rich.
Leaving the White House for Camp David in December, President Trump was asked about the tax cuts his party was pushing through Congress.
“This really will mostly benefit the middle class and jobs,” he said … At a Cabinet meeting a few days later, he called the legislation a “jobs bill” because corporations were going to “start pouring into the country.” On Twitter, he promised that the “results will speak for themselves, starting very soon. Jobs, Jobs, Jobs!”
On Friday, the Bureau of Labor Statistics released its monthly report on employment in the United States … the jobs report was far from what was promised … The divide between Trump’s rhetoric and reality is worth pointing out because the rhetoric was meant to sell a bill that had obvious and immediate advantages for businesses and the wealthy while promising benefits for middle-class Americans that largely haven’t been manifested.
This isn’t what Trump promised.
Job growth slowed for the second straight month in July, to 157,000 down from June’s 248,000 … wage growth remained sluggish at 2.7 percent over the previous year, indicating that the tight labor market and the robust 4.1 percent second-quarter growth in GDP that a jubilant Trump administration announced last week still isn’t showing up in paychecks.
The report was unwelcome news for President Donald Trump … the economy could be on the verge of a “darker” turn, warned Mark Zandi, chief economist at Moody’s Analytics.
The Labor Department released a report on Friday showing much weaker than expected U.S. job growth in the month of July.
The report said non-farm payroll employment climbed by 157,000 jobs in July compared to economist estimates for a jump of about 190,000 jobs.
As the Washington Post’s Paul Waldman writes in the Plum Line:
…The truth is that in politics, when we talk about “the economy” what we’re usually talking about more than anything else is job growth. And job growth during the 18 months of the Trump presidency has been . . . perfectly fine. Not spectacular, not amazing, not more than anyone could have imagined, not the greatest in history, but fine. The economy has been steadily adding jobs since the Great Recession bottomed out in 2010, and the pace of that job creation since Trump took office has been pretty much the same as it was when Barack Obama was president…
The number of jobs being created is an important part of “the economy” as people experience it, but it’s not the whole thing. Wages, for instance, are essentially stagnant, rising only at about the same rate as inflation. Health-care costs keep going up, despite the president’s promise that he would offer “something terrific” on health care that would provide better coverage at lower cost. If almost anyone can find a job — but the only jobs in your area with your skills offer low wages and skimpy benefits — is this the greatest economy in history for you?
The American people deserve so much better than the raw deal they are getting from the cynical Republican special interest agenda. Democrats are fighting to deliver A Better Deal For The People, with a plan to lower health costs and prescription drug prices, increase Americans’ pay through strong economic growth by rebuilding America and clean up corruption to make Washington work for the people.