The U.S. Labor Department reported the U.S. economy created 196,000 jobs in March and the unemployment rate was unchanged at 3.8%. It was the 102nd straight month of positive job growth. The report also announced that February's job numbers were revised from 20,000 jobs to 33,000. In the first three months of 2019 533,000 jobs have been created compared to the 613,000 jobs that were created in the first three months of 2018. So job growth at this point has fallen from last year despite the Trump-GOP tax cuts.
The March jobs report gave some economist hope after February's low job numbers and are pleased with the stock markets reaction but this writer does not believe the stock markets reaction is relative to the matter. American jobs are not moving back to America from over seas as predicted by those who support trickle down economics nor has capital investment in new plant and equipment surged as predicted.
The U.S. economy at certain times needs to be stimulated to keep growing and the democratic controlled U.S. House will probably be the ones to set the agenda with the infrastructure bill they are working on and that they will present and vote on. It is one of the best job producing avenues the country has that has a positive affect on all phases of the economy. Presidential candidate Hillary Clinton said during the 2016 campaign infrastructure legislation would be her number one priority if elected. Trump missed a great opportunity when he sent a flawed infrastructure plan to the republican controlled congress as reported previously in PolitiDose. The republicans just laughed at it because it was not a workable plan at all and they never gave it a thought much less a hearing it was so flawed. But the GOP themselves never had the will to fashion their own plan.
The democratic controlled congress will not sit still and already passed several bills that will go to the republican controlled Senate for their actions. At some point Trump and the GOP will have to back legislation proposed by the democratic party if they want to see the economy continue to grow. Hourly wages for March dropped back from February's gain according to the Labor Department report which is another reminder that trickle down economics will not be a driving force in achieving middle class income gains.
One area of income gains for workers in the last few years are due to the under reported steps various states and business have taken on their own to raise the minimum wage. They did not wait for congress to act. And it was President Obama's administration who pushed to raise the minimum wage which congress never acted on. Those business and states that did listen and did act deserve credit. Target just announced it was raising their minimum wage to $13/hour. That is the third year in a row they raised their wages and are on schedule to meet their goal of $15/hour by the end of next year.
The key to a sound economy, job creation and increase in wages always depends on sound policy and plans. And so far all Trump and the GOP have to show is trickle down economics tax cuts and rhetoric. The economy was doing well when Trump took office and so was job creation. Now in his third year in office the people will see how well he can manage the rest of his term.
This commentary written by Joe Lorio
