Jobs for a lagging economy

A month from now, we will welcome a new year and a new Congress with a new majority. For the 118th Congress, House Republicans have put forward our Commitment to America agenda. In the new Republican majority, we will work to rein in reckless government spending, strengthen and make permanent the tax relief included in the Tax Cuts and Jobs Act, maximize take-home pay for all Americans and build an economy that’s strong.

TCJA’s success in raising wages shows how strengthening wages for workers is more easily done when employers have stability. Securing those gains which benefitted all Americans by making permanent TCJA’s tax relief for families and small businesses must be a bipartisan priority in the next Congress. Allowing tax relief to expire while families are already struggling under record-high inflation would leave them out in the cold.

As many economists continue to warn of the continued dangers of an economic recession, the November jobs report from the Bureau of Labor Statistics indicates a rise in unemployment and a continuing low workforce participation rate. Prior to the COVID-19 pandemic, the workforce participation rate was at 62.4%, and at the height of the great recession in 2008 and 2009, it was 64.9%. It is currently at 62.1%. There are 1.7 job openings for every job seeker and we cannot ensure a full recovery without getting Americans off the sidelines of the economy and into good-paying jobs.

Analyzing the third quarter GDP report, Gregory Daco, chief economist at EY-Parthenon said, “…the underlying details of the (report) continue to paint the picture of a slowing economy with domestic demand stalling under the weight of elevated inflation and the most aggressive tightening cycle by the Federal Reserve since the 1980s.” Federal Reserve Chair Jerome Powell has said interest rate increases are expected to continue “for an extended period.” We are seeing businesses of all sizes consider and implement large-scale layoffs, and consumer debt in the third quarter rose by the greatest rate in 15 years to reach a record $16.5 trillion. We are, quite simply, headed in the wrong direction.

While the holiday season provides an opportunity for many to share blessings and exchange gifts alongside loved ones, for millions of Americans, it will be marked by painful reminders of the demoralizing impact of inflation in the Biden economy. According to the Energy Information Administration, the average household faces a $1,359 energy bill this winter as home heating costs climb to a 25-year high. A survey by Bankrate shows 86% of American holiday travelers with annual household incomes less than $50,000 are shortening, limiting or downgrading their trips because of inflation. While prices are rising, wages have not kept up and families are forced to tighten budgets.

A survey by GOBankingRates revealed one-third of Americans are purchasing fewer gifts for friends and family this year due to inflation.

Households have been burdened with $8,000 more in expenses thanks to inflation this year, and new government data shows economic recovery is lagging. Consumer confidence dropped to a four-month low in November. In order to restore economic strength, we must acknowledge the warning signs of further economic difficulty caused by excessive government spending and correct course. We’ve done this before; we can do it again.