ALFREDO ORTIZ: America’s Labor Market Turning A Corner Led By Main Street And GOP Policies
By Alfredo Ortiz |
Friday’s jobs report shows the American labor market is turning a corner. The unemployment rate fell to 4.4%, and average wages grew 40% faster than inflation. Rising real wages are a stark contrast to the Biden administration, where 25% inflation caused an affordability crisis that President Donald Trump and Republicans are digging us out from.
The report also showed that unproductive government jobs have fallen by nearly 300,000 over the past year, reducing a significant drag on the real economy. The number of discouraged workers declined by almost 200,000 last month, and the number of Americans quitting their jobs increased significantly, indicating that workers are increasingly confident they can find a job.
Topline job creation remains mediocre, but hires are a lagging economic indicator. In fact, the labor market is far stronger than this headline number suggests.
Recent economic growth smashed expectations, with GDP rising by more than 4% in the most recent quarter. The Atlanta Fed’s GDPNow model suggests growth will continue above 4%, representing a historic rise in living standards. Holiday spending also exceeded expectations, with Visa and Mastercard announcing growth of more than 4%, revealing a healthy American consumer.
Small businesses, America’s job creation engine, will respond to the strong economy and consumers by expanding and hiring, setting the stage for strong job gains in the months ahead.
According to a new Citizens Bank survey of small businesses, two-thirds of small businesses expect their revenues to increase in the first quarter of this year. And a new JPMorgan Chase survey finds that three-quarters of small businesses anticipate revenue growth.
Fast economic growth and increasing Main Street revenues don’t happen in a vacuum, as many left-wing pundits would have you believe. They are the direct result of good public policy that empowers businessmen, not bureaucrats.
Exhibit A is Republicans’ Big Beautiful Bill, signed into law last July, which cut taxes for entrepreneurs and employees. The bill restored and made permanent 100% immediate expensing for small businesses, encouraging expansion, development, and hiring. It also made permanent the 20% small business tax deduction, allowing more stores to become profitable.
It expanded the standard deduction and child tax deduction and exempted tip and overtime income, giving workers what should be their largest tax refunds in American history this spring. Funds that will help folks overcome Biden’s affordability crisis.
Sadly, every Democrat in Congress voted against these significant middle-class tax cuts and in favor of the biggest tax hike in American history. Republicans need to sell this win to independents and apolitical folks every day from now until the midterms to keep control of Congress.
Mass deportations, the Epstein files, and transgender bathrooms may be the issues that matter most to the MAGA base, but they are not the ones that will get Republicans the 51% coalition needed to win. They will not motivate Martha, three doors down the block, Jorge, in the apartment complex across the street, or David and Michael, the brother duo trying to get their Main Street cafe off the ground.
No matter what the latest America First social media influencer says, preserving and expanding the opportunity economy will always be the winning message the broad conservative coalition needs to overcome the Democrat siren song of “free stuff.”
The Trump administration and Congressional Republicans have notched numerous wins to advance this engine of increased well-being and affordability. Now it’s time to connect the dots for the general public. Big job gains in the months ahead will help drive these victories home.
Originally published by the Daily Caller News Foundation.
Alfredo Ortiz is a contributor to The Daily Caller News Foundation, CEO of Job Creators Network, author of “The Real Race Revolutionaries,” and co-host of the Main Street Matters podcast.
