Washington, D.C. — Center for American Progress Economist Michael Madowitz released the following statement today on the July 2018 Employment Situation figures from the U.S. Bureau of Labor Statistics (BLS):
July 2018 saw 157,000 new jobs added to the economy—slightly below expectations—with the unemployment rate dropping to 3.9 percent. Year-over-year wage growth was, as expected, moderate at 2.7 percent, a worryingly low number given the overall strength of the labor market.
So far, the Trump White House and the congressional majority have touted their corporate tax cut giveaway as the solution to sluggish wage growth, but recent wage data from the BLS showed that real wages are flat or slightly down since the tax bill passed. Both the White House and the congressional majority have expressed interest in indexing capital gains for inflation, a move that would deliver tens of billions of dollars annually in additional tax cuts to the wealthiest Americans. It’s just one more piece of evidence that this White House and its allies are not focused on the pocketbooks and paychecks of everyday Americans but, instead, are looking for any way possible to reward their wealthy donors and corporate friends with a corrupt cash grab. And given the continuing failure of record profits to stimulate capital investment, this boondoggle can be expected to produce only increased deficits and greater income inequality.
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