(ThyBlackMan.com) When former president Bill Clinton uttered these words, “It’s the Economy Stupid,” in his defeat of former president George Bush, the unemployment rate was at 7.8%. The most comprehensive unemployment rate for August, the last publicly revealed rate, before the Federal Government shutdown, per the Bureau of Labor statistics economists is 8.1%, the U-6 rate, and not Trump’s 4.3%, the U-3 rate, from the Table of Alternative Measures of Labor Underutilization. The African American rate is 2.7% higher at 10.8%.
In these perilous times, when unemployment is rising, the words, “authoritarian president,” mentioned more often than ever before, the Federal Reserve cutting interest rates to support a fragile labor market, while inflation is above its 2.0% target rate, a “failed” Trump Tax Cut of $3.4 trillion, “the One Big Beautiful Bill,” promoted as a blue collar boom for Job creation, a tariff war of President Trump’s own making, a Federal Government shutdown, layoffs/firings rising, retirees under economic stress, and the potential of a 3rd recession in 17 years on the horizon, the United States needs a fact based economic proposal, in which some confidence can be placed, that will grow Jobs and expand our economy without inflation reaching uncontrollable levels.
The nation is in political and economic turmoil. It is not due to voters being in conflict in regard to what they agree is their number one issue; the turmoil is due primarily to the two major political parties and their leaders refusing to directly address what voters and citizens have chronicled for years, as their number one issue, and that is the economy and Jobs.
The Republican and Democratic parties and their leaders, Republican President Donald Trump, and Democratic Minority leaders Representative Hakeem Jeffries in the House of Representatives and Senator Chuck Schumer in the Senate, are well aware polls show the economy and Jobs are the number one issues of voters. Yet, the two parties are debating health care subsidies for an estimated 20 million likely insureds and have shut down the Federal Government over this issue.
The two political parties aren’t debating economic growth and Job proposals, they are debating Obama health care subsidies for an estimated 20 million insureds, while 170 million working-class people are facing a declining economy where unemployment is ticking up. Cutting interest rates to support a declining labor market, without an economic plan to grow the economy and Jobs is a repeat of the Obama, Trump’s first term, as well as Biden administration economies. Lowering credit card debt will increase consumer spending. However, an active trade war of President Trump’s making, is creating inflation. By continually lowering interest rates, the Federal Reserve risk inflation moving higher, as inflation is averaging 3.0% over the last 12 months, which is an increase, per the September Consumer Price Index Report, from the Bureau of Labor Statistics.
Economic growth does not come from trickle-down revenue due to tax cuts to billionaires, millionaires and corporations as the Trump Tax Cut has proven in real time, as we are watching unemployment rising after the passage of “the One Big Beautiful Bill.” Job creation and Economic growth come from consumers with disposable income to spend. When consumers have money, businesses grow customers leading to Jobs and a rising tide that truly lifts all boats. In examining the 10 year 10% $25,000 Boomer Demand Side Consumer Tax Cut model economy, which is detailed at “my blog post,” TheFixThisTime.com under the title “The Consumer Tax Cut Plan Explained,” you can readily see the potential for creating long-term Job creation, and economic growth.
But here is what we know, any serious discussion about Job creation and economic growth are not going to come about until the two parties settle the issues regarding Obama subsidies for an estimated 20 million people. It would appear the issue revolves around the length of time the subsidies should be sustained. Clearly hitting this pool of potential 20 million insureds, with dramatic rate increases in health insurance premiums this year, and extending these subsidies for just one year, is unacceptable to Democrats. What would a patriotic president and party do, they would start negotiating with Democrats above that level, and solve this problem, and get on to the business of what voters consider as their #1 issue, the economy and Jobs.
But here is the problem with that. When you as president have just promoted a $3.4 Trillion Tax Cut and oversaw its passage through the House of Representatives and Senate with significant grandeur, it’s a bit difficult to come back to voters and say we need another tax cut, this time directly to consumers, but Mr. Trump can do that.
The way out for Mr. Trump and the GOP rests in the manner in which they promoted “the One Big Beautiful Bill (OBBB).” In promoting OBBB, Mr. Trump stated, the bill is giving the largest tax cut to working-and middle-class Americans in the history of this nation. Apparently, he did not give consumers enough of a tax cut. He can admit it wasn’t enough, as he promised it would also deliver a Blue-Collar BOOM in Jobs. We did not get the boom in Jobs, as a matter of fact, as previously stated, the opposite is true, unemployment is rising.
Here is what was stated on the White House web site on June 24th, 2025, where the “One Big Beautiful Bill,” Trump’s tax cut proposal, was promoted: “The One Big Beautiful Bill delivers for the American worker: The One Big Beautiful bill delivers the largest tax cut for working-and middle-class Americans in history. Put simply President Trump’s One Big Beautiful Bill will unleash our economy and deliver a Blue-Collar Boom.” Mr. Trump can still deliver on this Boom, through the first 10 year 10% $25,000 Boomer Consumer Tax Cut model economy, which will create the millions of Jobs, he promised; well, projected, anyway.
Democrats have their problems also. Biden and the Democratic party allowed millions of economic immigrants to enter the country, and working-class people knew this and felt the impact. At the same time Biden and Democrats suppressed our unemployment rates. It is well known among those who seriously follow the Monthly Unemployment Report, the U-6 rate is the rate to watch, as it is the most comprehensive rate of unemployment, per the Bureau of Labor Statistics economists.
Former president Biden crisscrossed the country saying many times, “And [un]employment has been the lowest — been below 4 percent for the longest stretch in 50 years.” Biden used the U-3 category rate, leaving the impression the U-3 category rate was the most comprehensive of our unemployment rates. It was not. Biden’s unemployment numbers simply didn’t add up when fact checked and neither will Trump’s as he adopts Biden’s policy of misinformation, saying for August, the last publicized rate, that the U-3 rate at 4.3% is our most comprehensive rate, when per the Bureau of Labor Statistics economists, it is actually the U-6 rate which clocked in at 8.1%. For more analysis about unemployment rates, click on, https://thyblackman.com/2024/08/18/kamala-harris-economic-policy-the-truth-behind-undercounting-unemployment-rates/.
Both parties must “open their political ears and hear working-class Americans” – as it is largely their voting that put Trump in the presidency. Trump and Republicans need to create Jobs to satisfy working-class Americans’ demands; the 10% Consumer Tax Cut model economy guarantees that. “Consumers spending money is the Big Wheel. That is what makes the United States economy the #1 economy in the world.” Consumer spending is “70% of GDP, the Big Wheel,” per the Bureau of Economic Analysis. So, if you increase consumer spending, and the Big Wheel turns, it makes the little wheels turn, also, producing
1) lower unemployment rates,
2) economic growth,
3) Job creation, including the wheel of new revenue streams.
4) “New consumer spending” due to the 10% Consumer Tax Cut, will produce revenue streams, and those new revenue streams can be taxed, by the federal, state and local governments,
5) making the 10% Consumer Tax Cut deficit neutral.
Democrats by supporting the 10% Consumer Tax Cut, because any tax bill of this magnitude will need Democratic party support, get to welcome American workers back home. Working-class Americans and retirees were at one time in the Democrats’ wheelhouse, and they took them for granted. They have an opportunity to reestablish a genuine rapport with them, based on the Truth going forward. Democrats need an issue or proposal of this nature “at this Time,” where they can show they whole heartily, without any equivocation, support working-class Americans, the middle class and retirees.
Everybody benefits from a predictable and solidly growing economy that does not depend on lowering and lowering interest rates (cheap money) to create growth, while watching inflation rise. Increasing consumer spending through a 10 year 10% $25,000 Boomer Consumer Tax Cut model economy, where the Federal Reserve in cooperation with the U.S. Treasury can track and determine the amount of money flowing into the economy, will reduce inflation. That’s one of the key attributes of the tax cut. Beyond that, the 10% Tax Cut will also grow Jobs and expand the economy. It should be scored by the Congressional Budget Office. Click on TheFixThisTime.com for more 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.
