Despite the historically low unemployment rate of just 3.6 percent, House Speaker Nancy Pelosi slammed President Donald Trump’s handling of the economy. Pelosi cited the May job report, which found that just 75,000 jobs were added, down from 224,000 jobs added a month prior.
“The May jobs report is a disturbing sign that the Administration’s disastrous special interest agenda is hollowing out our economy, fueling instability and jeopardizing the financial security of working families across America.”
Wage growth also slowed in May, coming in at just 3.1 percent. A month prior, wage growth weighed in at 3.2 percent. These numbers may sound healthy but once inflation is factored in, wage growth has been rather paltry. Overall, wages have grown slowly since the Great Recession, even in spite of the low unemployment rate.
Pelosi also slammed Trump’s tax cuts, labeling the cuts a “GOP tax scam for the rich.” Evidence has emerged that the wealthy and corporations reaped most of the benefits of the GOP tax cuts, while many middle-class Americans saw meager benefits. In some cases, middle- and working-class families actually paid more in taxes.
A report released earlier this year found that nearly 40 percent of Americans are one missed paycheck away from poverty. Among households of color, this number rises to 57 percent. The report also found that one in ten households is behind on their bills, while 40 percent of households have no money set aside for an emergency.
These numbers suggest that Americans could be in for tough times should the economy fall into a recession in the near future. Numerous analysts have argued that Trump’s ongoing trade disputes will increase the short-term risks of a recession. However, there is some good news: The Trump administration and Mexico reached an agreement to avert tariffs.