The U.S. Labor Department reported the economy created 75,000 new jobs in May, a much smaller increase than the 180,000 projected by economist. It was the 104th straight month of positive job growth and the unemployment rate held at 3.6%. The Labor Department also reported jobs creation for March was 153,000 instead of the 196,000 originally reported and that April's job creation was actually 224,000 instead of the 263,000 originally reported.
May's lower job numbers and the revision of the March and April numbers are a set back for the economy and future economic projections. The average monthly job creation in 2019 at this point are far behind the monthly average of 2018 and the lowest monthly average since 2010 when the economy was growing itself out of the great republican recession of 2008. And two out of the first 5 months of this year saw job creation fall below 100,000 per month. It was 33,000 (revised) in February and 75,000 in May. It was only 18,000 in September 2017 and never fell below 100,000 in Obama's last 28 months in office. The Trump-GOP tax cuts have failed to produce the job numbers that took place in President Obama's last 28 months in office, which is no surprise to the readers of PolitiDose.
The big problem besides the tax cuts are reflected in the fact that President Trump and the republican controlled congress has not taken up or passed one piece of legislation that deals with the economy and how to keep it moving forward with a workable plan and policy. Trump's tariffs and trade wars are also a negative on the economy. And in the last two weeks Trump rejected the democratic plan to deal with the nations infrastructure and ended the meeting before it started claiming he would not work with the democrats. Hillary Clinton and democrats know how the economy works and that it reacts to being stimulated. That is why Clinton's priority if elected would have been to deal with infrastructure that would create millions of new jobs and stimulate the growing economy.
The May job numbers and Trump and the GOP;s lack of addressing the nations economy with real policy and plans signals a rough road ahead. And when one takes into consideration the legal trouble Trump brought upon himself and his lack of character, the keg could soon explode. The wrap up to date on job creation is as follows: In Trump's first 28 months in office the economy created 5,207,000 new jobs for a monthly average of 185.964 new jobs created. In Obama's last 28 months in office the economy created 5,975,000 new jobs for a monthly average of 213,392 new jobs created. And Obama did not reduce the corporate tax rate nor the tax rate for the wealthy. So what will the economy look like for the balance of Trump's term in office? Will the password when the 2020 election rolls around be, "its the economy stupid?" Understanding the past is still the key to a better future.
This commentary written by Joe Lorio
