The U.S. Economy and Job Creation

The U.S. Labor Department reported the economy created 211,000 jobs in April and the unemployment rate came in at 4.4%.  It was the 79th straight month of positive job creation that started with the economic policies of former President Obama.  The Federal Reserve  reported that the economy continues on a steady pace.

President Trump has yet to introduce his jobs program of rebuilding and repair of the nations infrastructure even though he said it was a priority.  On the other hand, Clinton said if elected  it would be her first order of business.  The latest report on Trumps plan would be a $1 trillion project financed by private and government money.  The federal government would put up $200 billion and the private sector would be responsible for $800 billion.  In return the private sector (Corporate America) would receive tax breaks in return.

The democrats will introduce their own $1 trillion jobs plan to be paid for by the elimination of the special tax breaks given out to special interest.  The democratic plan would not increase the federal deficit.  The Trump plan would and also increase the national debt.  The private part of the funding would not be a sure thing and lacks a certain flow of capitol over this long process.  The state of Texas has already rejected private financing for their own states financing for their infrastructure.  Government financing has always worked best when the federal government was involved in past projects such as this.  It insures a continued funding which allows contractors the planning time needed and the knowledge that there will be work tomorrow for their operations and people.

The republicans in congress failed to move President Obama's plan early on in his administration even though the CBO indicated it would have created one million new jobs in the first year.  The republicans stood faithful to their pledge of doing nothing to help the President.  So now, congress is back to square one while the nations infrastructure continues to decay.  The legislation is important and the democrats are eager to see its passage so new jobs can be created to keep the economy growing and keep America working.


This commentary written by Joe Lorio