Trump hails strong jobs report as ‘shattering expectations’
Washington Times – President Trump on Thursday celebrated the strong job gains in June as proof that “our economy is roaring back” from the coronavirus outbreak.
“This is the largest monthly jobs gain in the history of our country,” Mr. Trump said in a hastily arranged announcement at the White House. “These are historic numbers, in a time that a lot of people would have wilted. But we didn’t wilt, and our country didn’t wilt.”
Employers added 4.8 million jobs in June, combined with 2.7 million jobs in May, as states reopened from mandatory shutdowns that had thrown more than 30 million Americans out of work.
The unemployment rate fell to 11.% from 13.3%, although White House advisers acknowledged the labor market is still far from the historic low of 3.5% unemployment in February, before the pandemic hit.
“There [is] still a lot of hardship and a lot of heartbreak in these numbers,” said White House economic adviser Larry Kudlow. “We have a ways to go.”
Democrats said the president is painting too rosy a picture of the recovery, noting that many states are experiencing a rise in cases of COVID-19, the disease caused by the new coronavirus. They said the jobs report doesn’t lessen the need for a fourth round of economic relief, including extending beefed-up unemployment benefits through the end of this year.
“Today’s jobs report may just be a slight peak in a much larger valley, and unless … Senate Republicans get off their hands and finally work with Democrats to quickly provide additional federal fiscal relief, the pain America is experiencing will only worsen,” said Senate Minority Leader Charles E. Schumer of New York.
Mr. Trump is counting on a strong economic rebound from the pandemic to boost his reelection prospects. The Labor Department’s report was the second consecutive monthly dose of good news in an election year in which nearly 130,000 Americans have died from COVID-19, and cities have been roiled by protests over racial injustice.
The president said about 80% of small businesses have reopened, and he credited his policies for the comeback.
“The only thing that can kill it is a president that wants to raise taxes,” he said, referring to Democratic rival Joseph R. Biden. “This is not just luck, what’s happening. This is a lot of talent. These are not numbers made up by me, these are numbers.”
The increase in jobs in June comes even as states such as Florida and Texas are reimposing restrictions, including closing bars again, due to a rise in coronavirus transmissions and hospitalizations.
“We have some areas where we’re putting out the flames, or the fires,” Mr. Trump said.
He said more businesses will open across America, “especially as we put the flame out.”
Vice President Mike Pence is heading to Florida on Thursday to discuss surging transmissions of the virus with Gov. Ron DeSantis. The vice president flew to Texas on Sunday and Arizona on Wednesday to pledge support for their hard-hit areas.
Mr. Trump argued the virus has an arc to its life, noting that China is finally getting the virus under control after discovering it in December.
He said Europe saw the virus before the U.S. and is starting to control it. Mr. Trump said he expects the U.S. to follow suit as hard-hit areas like New York see improvement and other states see localized spikes.
“It’s got a life. We’re putting out that life because that’s a bad life that we’re talking about,” Mr. Trump said.
The president insisted that states are well-stocked with ventilators and other supplies to get the job done. And Mr. Trump said it is still up to states to decide when to open up their economies, though Americans must use face coverings, maintain distance and observe hygiene.
“Wash your hands,” Mr. Trump said.
The president said the jump in jobs last month was “shattering all expectations.” He noted that consumer confidence also has risen significantly since April, and retail sales rose nearly 18% in May.
Freddie Mac said Thursday that 30-year fixed mortgage rates fell to 3.07%, the lowest since record-keeping began in 1971.
The president also pointed to the strong performance in the stock market in recent weeks, after a precipitous dive in March during the shutdowns. All three major stock indexes were up more than 0.5% in trading before noon on Thursday, largely on the strength of the jobs report.
Mr. Trump said a tax increase under Democrats would halt that progress.
“You want to raise taxes, your 401(k)’s will drop down to nothing, your stock market will drop down to nothing,” he said.
The rebounding economy likely will have an impact on negotiations on Capitol Hill over the size and scope of the next rescue package. House Democrats last month passed a $3 trillion plan, including hundreds of millions in aid to states and cities.
Congressman Don Beyer, Virginia Democrat and vice chair of the Joint Economic Committee, chided Republicans for what he called their “absurd argument that job gains over the past two months mean that unemployed workers no longer need supplemental benefits.”
“We are still nearly 15 million jobs in the hole,” Mr. Beyer said. “The unemployment rate is still higher than it has been in 80 years and there are more unemployed workers than there are job openings. There have been over one million new unemployment claims for 15 straight weeks and job losses for public sector workers at the state and local level have been catastrophic.”
He said that adding the spike in coronavirus cases “and hospitalizations in states that reopened too soon” … it is easy to see that the fresh start the Trump administration has been trumpeting is actually a false start.”
“The most important thing we can do to get the economy back on track is to contain the virus — yet the president has his head in the sand. In the meantime, we must provide relief to workers, families and state and local governments for as long as they need it,” Mr. Beyer said.
Mr. Trump’s allies said the June jobs report is more evidence that the economy is rebounding quickly and there’s less need for another stimulus bill. Stephen Moore, co-founder of the Committee to Unleash Prosperity and member of the president’s task force to reopen the economy, said the job gains were “across the board — manufacturing, construction, hospitality, and restaurants.”
“Nothing not to like in this blockbuster report — [the] Trump plan for revival is working,” Mr. Moore said.
White House advisers said they don’t regret cheering the reopening of economies amid the pandemic, though suggested that some states rushed things.
“I think some places may have been overexuberant,” Mr. Kudlow said.
Treasury Secretary Steven T. Mnuchin said he’s hopeful that working parents will be able to get their kids out of the house this fall.
“I think in most places, schools will be able to open safely,” Mr. Mnuchin said.
He said the next coronavirus-relief bill from Congress could include funding for schools that want to revamp their facilities to prevent the virus.
Source: US Government Class
