President Trump’s tax reforms and pro-growth policies have driven American unemployment numbers to a century low of 3.9%, reports Alfredo Ortiz of The Hill. Crucially, this reduction includes black and Latino joblessness falling to a respective 6.6% and 4.8%, their lowest ever and half of what they were five years ago. Tax cuts, in particular, drove business success, which resulted in higher wages for employees. Big corporations are more competitive on the international market, and small business optimism is at record levels. The Congressional Budget Office responded by raising predictions for economic growth to 3.3% in 2018.
While definitely a positive change, the fact that America’s unemployment fell to a 21st century low isn’t as great as President Trump is making it out to be, argues Stephen Loiaconi of WJLA. The country’s labor participation numbers are far lower than before the recession. Today they stand at 62.8%, in 2000 it was 67.3%. Many people have left the country’s workforce and therefore are no longer part of unemployment statistics. This is also why wages aren’t rising more. Many people are discouraged from trying to find work. Tax cuts did little to raise workers’ salaries. America’s low joblessness is not as positive as some present it as.