So the “Summer of Recovery” still has a little time.
Here’s Ron Sims, deputy secretary for the U.S. Department of Housing and Urban Development, back on June 17:
“With tens of thousands of projects funded and millions of Americans on the job today, it’s hard to believe that it’s only been 16 months since President Obama signed the American Recovery and Reinvestment Act. And with so many jobs saved and created already, you might think that the Recovery Act’s greatest impact is behind us.
“But it’s not. As the summer heats up, it is becoming clear that it could quite possibly be the most active season yet when it comes to recovering our economy. There are Recovery Act-funded projects breaking ground across the country that are creating quality jobs for Americans and economic growth for businesses, large and small.
“This summer is sure to be a Summer of Economic Recovery.”
Well, not quite.
Look at the employment numbers that came out on Friday: The economy lost 54,000 jobs, and for the first time this year, the manufacturing sector shed jobs – 27,000 of them. Granted, the overall job loss can be attributed to the end of 114,000 temporary Census jobs. While companies added a net total of 67,000 jobs, that’s not nearly the big boom that administration officials had hoped.
The jobless rate rose to 9.6 percent, the first increase in four months. The addition of about a half-million people looking for jobs helped push up the rate.
So the spin on this news is that the rate of unemployment has slowed. Time for celebration? I think not.
To help justify their “recovery” efforts, Obama and Co. point out that private employers have added 763,000 jobs this year.
News flash: The economy lost nearly 8.4 million jobs the past two years. Blame Bush and the Republicans for that, never mind that the Democrats have been the majority power in Congress since 2006.
But both parties are at fault for the economic failures we’ve had to endure. Nobody’s hands are clean.
Fed Chairman Ben Bernanke said that the economy is still fragile and that the Fed is ready to take additional steps if necessary. High unemployment is still a serious threat, Bernanke said, and he’s right.
So what can the government do to spur job creation?
Here’s one thing to consider:
If Congress fails to extend the Bush tax cuts, workers at every income level would be paying more.
Taxpayers making between $40,000 and $50,000 a year would get hit with an average income tax increase of $923 next year.
Those making between $50,000 and $75,000 would face an average increase of $1,126, according to estimates by the nonpartisan Joint Committee on Taxation.
In the midst of a fragile economy, raising taxes is not a good idea. Eventually, they will have to be raised if we’re to pay for everything we want, which includes reducing the massive deficit. But now’s not the time.
Putting more money in the hands of taxpayers and businesses will help build confidence and help with a recovery – whether it comes winter, spring, summer or fall.
Contact Dennis Seid at (662) 678-1578 or dennis.seid@djournal.com.











