Washington, D.C. — Center for American Progress Economist Michael Madowitz released the following statement today on the February 2018 employment situation figures from the U.S. Bureau of Labor Statistics:
Today’s employment report shows strong job growth, although the economy is unlikely to be on autopilot much longer. Large tax cuts have yet to create—and are unlikely to create—the kind of long-term, sustainable wage growth that Trump and Congressional Republican leaders promised. Rather, companies are buying back their own shares at a record pace, funneling the lion’s share of the tax cut windfall back to corporate executives and wealthy investors.
Other recent moves from the Trump administration threaten to put hard-earned economic progress at risk. A trade war, sponsored by the president, could very well create significant domestic job losses among the exact communities Trump pledged to help. And on the heels of massive corporate tax cuts, Congress is now proposing another enormous giveaway to Wall Street in the form of financial deregulation. The so-called Economic Growth, Regulatory Relief, and Consumer Protection Act would deregulate 25 of the largest 38 banks; undermine protections for homeowners and homebuyers; increase the chances that the United States faces another financial crisis and recession; and pose a serious threat to the labor market. At this point in time, when bank profits and lending are at all-time highs, deregulation should be the last thing on the minds of policymakers. Instead, they ought to strengthen financial regulations to weather the next economic downturn.
The longest expansion in modern history has been fairly uneventful the last few years, but given this administration’s actions, we may be about to find out how robust our economy truly when faced with highly questionable policy choices.
Related resource: The State of the U.S. Labor Market: Pre-February 2018 Jobs Release by Galen Hendricks and Michael Madowitz
For more information or to speak to an expert, contact Allison Preiss at gro.ssergorpnacirema@ssierpa.