Tax Facts Tuesday: Americans of All Walks of Life Benefit from Growing Economy
Here’s the news: Job growth has averaged 224,000 over the past three months.
Fueled by the GOP tax cuts and regulatory reform from the Trump Administration, the U.S. economy is expanding at rates we have not experienced in years. So much so that the Federal Reserve, as the New York Times reported, “upgraded its view of the economy’s underlying condition from ‘solid’ to ‘strong.’”
Here’s the rhetoric: Democrats are still downplaying the gains our economy continues to see following tax reform. Nancy Pelosi, despite Friday’s solid jobs number, said that Washington is not “work[ing] for the people.”
The Americans who have benefited from the 1.5 million jobs that have been created since tax reform have reason to disagree with Pelosi’s claim. But House Democrats continue to double down on their desire to take our country back to the slow-growth days of the past.
Here’s the reality: Americans across the country and from all backgrounds are benefiting from this growing economy. Even Obama’s former economic advisor, Jason Furman, told CNBC there is “faster wage growth at the bottom than at the top” right now.
By the numbers:
- Americans are seeing bigger paychecks and more benefits.The Employment Cost Index (ECI) – which reflects changes in employee wages and benefits – rose at the fastest pace in ten years according to a report by MarketWatch. Wages for private industry workers grew by 2.95 percent in the second quarter on a year over year basis.
- Workers without a high school diploma are finding work. The unemployment rate for those without a high school diploma fell to 5.1 percent in July, reported the New York Times. This is a dramatic turn from when the unemployment rate for this group was at 15.6 percent in 2009—it is now at its lowest rate since the data began to be collected in 1992.
- Blue collar workers are benefitting. As reported by the Wall Street Journal, stores and factories “lead this year’s unexpected hiring boom.”
- Retailers have added “an average of 12,000 [workers] each month” in 2018.
- Business Insider reports the job market for manufacturing positions “hasn’t been this strong” in over two decades, with the U.S. adding 327,000 manufacturing jobs over the past year – including 37,000 jobs added in July alone.
- Hispanic unemployment is at a record low. The unemployment rate for Hispanic Americans fell to a record low of 4.5 percent in July, as reported by the Washington Examiner.
- Underemployment is ticking down. As noted by Bloomberg, the U-6 unemployment rate – which some economists view as more comprehensive because it includes unemployed, underemployed, and discouraged workers – fell to 7.5 percent, its lowest level since 2001. The labor force is growing as Americans from across the country benefit from this expanding economy.
The bottom line: Workers are winning in this economy. While Democrats continue to make misleading claims disputing the benefits of tax reform, House Republicans are committed to ensuring this economy continues to benefit all Americans.