(ThyBlackMan.com) The Bureau of Labor Statistics economists (BLS) announced the most comprehensive unemployment rate, for July is 7.9%, the U-6 category rate from the Table of Alternative Measures of Labor Underutilization, and a weak Job number of 73,000. Additionally, the BLS revised down the number of Jobs created over the last two months, May and June, by 258,000. May was revised by 125,000 stating 19,000 jobs were created in May. June was revised down by 133,000 showing only 14,000 Jobs were created in June. Regardless of the disputes over the latest numbers, these numbers show us, the U.S. economy is slowing, and we need to grow the economy. Also, President Trump continually getting angry with the Federal Reserve (Fed) Chairman is senseless and nonsensical. Why?
Trump accused the BLS of reporting “fake July Job numbers,” so he fired the BLS chief, yet President Donald Trump announces monthly, fake unemployment rate numbers and doesn’t fire, himself. It’s an illustration of MAGA hypocrisy and Trump not taking unemployment rate statistics as serious, as he should. The most comprehensive July unemployment rate per the Bureau of Labor Statistics (BLS) economists is 7.9%, and not Trump’s hypocritical July rate of 4.2%.
Anyone who has followed my articles knows 4.2% (the U-3 category rate) isn’t comprehensive of our July unemployment situation. 4.2% indicates a full employment economy. That number means, 96 out of every 100 working Americans are working at full time Jobs, that’s paying them a living wage, as they understand what a living wage is. (Click on the following link for more details: https://thyblackman.com/2024/08/18/kamala-harris-economic-policy-the-truth-behind-undercounting-unemployment-rates/).
Furthermore, if the Job they are on doesn’t meet their standards, they can easily find another Job without a problem, paying equal or more money. That’s the way a full employment economy works; a tight economy, indicating there are more Jobs, than the number of workers to fill them. So, why would the Federal Reserve feel it must submit to Trump’s demands to lower interest rates in a full employment economy, when keeping interest rates at their current level helps it, in its mandate of fighting inflation. Could “the REAL problem be,” President Donald Trump is routinely underreporting our unemployment rates, saying 4.2% is comprehensive of the nation’s unemployment situation when it isn’t? It’s a scam and the well informed know it!
When Mr. Trump calls for lower interest rates, he is asking for cheap money. Naturally, when the Federal Reserve raises or lowers interest rates, it affects credit. Because presidents know consumers use credit to make purchases of large and small items, from housing to cars and clothing, and in some instances groceries, lower interest rates or cheap money is desired by every president, regardless of the administration in office. Cheap money can grow the economy, as well as good economic policies. But if you don’t have great or questionable economic policies, cheap money as an economic policy is a good substitute and works every time.
Just as certain as a cheap money economy works every time, raising interest rates, or the cost of money to reduce inflation works every time, also. Increasing interest rates to fight inflation works when it comes to reducing inflation but sometimes can lead to a recession. Trump is in a tariff war which can lead to inflation. The Federal Reserve is weary of lowering interest rates, feeling the nation will have higher inflation, due to increases in tariffs. The economy is slowing due to current interest rate levels and possibly higher tariffs working their way through the economy.
So, with the Federal Reserve knowledgeable of what is the most comprehensive rate of unemployment, even though the Trump administration promotes wrongly the U-3 category rate of 4.2% as being comprehensive, what is the SOLUTION? Well obviously, the Trump administration should abandon the Clinton era policy of promoting the U-3 rate as being comprehensive, started back in 1994, and embraced by the administrations of Bush, Obama, Biden, the first Trump administration, and now Trump’s current administration.
If the Trump administration and the nation get on the same page, along with the Federal Reserve, as to what is the most accurate and comprehensive unemployment rate, which for July, is 7.9%, with a Black worker group rate 2.7% higher at 10.6%, it becomes clear, it is time for both political parties to support a doable proposal to grow our economy.
Here’s the question VOTERS need to ask, after passing “a $3.7 trillion tax cut bill, why does Trump need to have interest rates lowered by the Fed chair creating a cheap money economy, which will lead to slow growth, once interest rates can’t be lowered any further? Wasn’t Trump’s tax cut to billionaires, millionaires and corporations supposed to jump start the economy?!
Nevertheless, voters aren’t stupid. The message President Trump is loudly proclaiming to anyone listening is, “I need Cheap Money from Powell and the Federal Reserve to make the economy work, after Congress passed my $3.7 trillion bill. My $3.7 trillion tax cut to billionaires, millionaires and corporations won’t and isn’t growing the economy and creating Jobs.”
So, where does the nation go from here? Here is the reality of the situation the nation finds itself in today. Billionaires, millionaires and corporations expressed their desire to reduce the amount of money in taxes, they send to the U.S. Treasury. Through President Trump, and Republicans, they got that desire fulfilled. However, in fulfilling this demand, the Congressional Budget Office (CBO), which was established by the Congressional Budget Act of 1974 to provide objective, non-partisan information to support the Congressional budget process and help Congress make effective budget and economic policy, states Trump’s tax, and spending bill will add as much as $3.8 trillion to the U.S. deficit.
The picture of the current economic state, the nation finds itself, would be incomplete, if we did not include the demands of working-class people, also, who shifted their vote to Trump, electing him president. Democrats discovered, and so will Republicans, as we now look to the midterms in 2026, working-class Americans are an integral part of the electorate. Abandoned by Biden, and Democrats who increased the number of economic immigrants, by the millions. while unemployment rates were increasing supported Trump, who said repeatably during his speeches, he will send these economic immigrants back, across the borders.
Trump is finding he can’t export enough immigrants, that his budget cuts are draconian and unpopular with voters, and his tax cut to billionaires, millionaires, and corporations haven’t resulted in growing the economy and creating Jobs. President Trump’s Solution is one that is old and familiar, “blame the Federal Reserve and demand the Fed institute a policy of cheap money, regardless of inflating prices and a potential recession.
The Fed has one Job: complying with the dual congressional mandate given to it by Congress, to maintain 2% inflation and keep unemployment stable with steady economic growth. It uses interest rates as the main tool to achieve this mandate. It is up to the president and Congress to come up with a fiscal Solution, to come with “a New Vision, a new way to grow Jobs, and the U.S. economy without the unpredictability of tariffs (GOP) and misinformation when it comes to our unemployment rates (Democrats).
When we look at the leadership of the Democratic party and we as voters should lambaste and condemn them for this; President Trump’s economy just posted, as stated above, the weakest Job growth over a 3-month period, since the Covid 19 Downturn, yet Democrats have not presented the nation with a long-term economic growth and Job Creation Plan. Most Democrats are waiting to run in 2026 on Trump’s mistakes, rather than on better economic proposals.
Yet, both parties have the capacity to change the nation and indeed the world economically if they support going to a Consumer Driven Tax Cut model economy. Consumer Spending is 70% of GDP, which means Consumer Spending is responsible for creating 7 out of every 10 Jobs in the U.S. economy. Consumers, you and me, Spending Money is what makes the U.S. economy, the #1 economy in the world. Increase Consumer Spending through a 10-year 10% Boomer Consumer Tax Cut and you increase Jobs and economic growth. This is based on sound empirical and mathematical data. Go to TheFixThisTime.com for details.
Staff Writer; James Davis
Mr. Davis is a Financial Analyst. His articles are about relating facts in a usable, truthful, and understandable way. That way, WE ALL WIN. James is, the author of three books, among them, “The Fix This Time,” Boost Your Retirement Income! Simultaneously Create Jobs and Spur Economic Growth (https://www.amazon.com/dp/B00MI3PD2M). Reach out to James @ his blog https://thefixthistime.com.
Question? Comment? One may use this email address; MrDavis@ThyBlackMan.com.
