National Catholic Reporter

The Independent News Source

Bad Jobs Numbers

Well, the White House surely did not need a bad jobs report for June, but that is what it got. Only 18,000 new jobs were added. The unemployment rate is at a painful 9.2 percent.

This should, but won't, confirm the fact that cutting taxes does nothing to increase employment. You will recall that last year, President Obama agreed to extend the Bush tax cuts for two years as well as introducing a payroll tax cut. Six months later, where are the jobs?

Companies hire when their business activity requires additional workers. If they don't need more workers, and they get a tax cut, they pocket the difference. Additionally, there is nothing like economic uncertainty to make companies scared about hiring new workers, and there is nothing that is contributing to uncertainty today more than the GOP intransigence on the budget negotiations and their failure to raise the debt ceiling.

Explore Pope Francis’ apostolic exhortation on the family with our free study guide.

Sadly, there is almost nothing the government can do right now to improve the employment picture. The Republicans will never sign on to any plan that mandates increased government hiring. As the much-maligned Stimulus Package spending comes to an end, demand is shrunk and the pressure on state government budgets is a further drag on the economy. There are some good answers, just none that would pass Congress.

Advertisement

NCR Comment code: (Comments can be found below)

Before you can post a comment, you must verify your email address at Disqus.com/verify.
Comments from unverified email addresses will be deleted.

  • Be respectful. Do not attack the writer. Take on the idea, not the messenger.
  • Don't use obscene, profane or vulgar language.
  • Stay on point. Comments that stray from the original idea will be deleted. NCR reserves the right to close comment threads when discussions are no longer productive.

We are not able to monitor every comment that comes through. If you see something objectionable, please click the "Report abuse" button. Once a comment has been flagged, an NCR staff member will investigate.

For more detailed guidelines, visit our User Guidelines page.

For help on how to post a comment, visit our reference page.

Commenting is available during business hours, Central time, USA. Commenting is not available in the evenings, over weekends and on holidays. More details are available here. Comments are open on NCR's Facebook page.

 

FRIENDS-ff.jpg

NCR Email Alerts