STATEMENT: CAP Economist Michael Madowitz on the July 2019 Jobs Report
Washington, D.C. — Center for American Progress Economist Michael Madowitz released the following statement today on the July 2019 Employment Situation figures from the U.S. Bureau of Labor Statistics. The economy added 164,000 jobs in July, with the unemployment rate remaining unchanged at 3.7 percent. Wages grew at 3.2 percent year-over-year.
Today’s jobs report is fairly tepid, and just this week, the Federal Reserve cut interest rates to bolster an economy that is looking noticeably less lively than it once did, particularly in the manufacturing sector. Meanwhile, financial markets have been volatile since last week’s gross domestic product release showed economic growth dragging in the second quarter. On Thursday, the president sent markets falling again with another tariff threat.
Beyond the top-line numbers in the jobs report, we also have to look at how real people are experiencing the economy. Over the past week, President Donald Trump and his congressional allies have been quick to assign blame to Democratic leaders in Congress for the poverty rate in cities such as Baltimore. But absent from the president’s tweets are any ownership of his economic failures: the failure of his corporate tax cut giveaway to generate the growth the administration promised; his failure to meaningfully raise wages for working people; and his promise to veto legislation to raise the minimum wage and lift millions out of poverty. In fact, the business investment that was supposed to raise growth and pay for the tax cut has disappointed since its passage, even as analysis has shown that U.S. companies benefiting from the tax cut on overseas profits have since increased their investment abroad. On top of six straight quarters of declining residential investment, it’s easy to see how the tax cut was not a great use of as much as $2 trillion.
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