As Democratic and Republican candidates canvas the country seeking to become the next president, the top issue facing Americas is the U.S. economy.
On Thursday the Labor Department reported that the economy created 223,000 jobs during the month of June, slightly less than most economists had predicted.
In a campaign speech President Obama reacted positive to the Labor Department’s report touting his administration’s economic policies having contributed to the drop in the unemployment rate.
“This is progress,” Obama said. “Step by step, America is moving forward. Middle class economics works.”
What the president failed to mention is that the main reason the unemployment rate fell was that the labor participation rate dropped by 432,000, to the lowest level since 1977. If the labor participation rate was the same as it was in 2009, unemployment would be over 10%.
The missing component to the Labor Department’s report was the stagnation wages.
Most of the jobs being created were centralized in food service and in retail, and the biggest disappointment was the stagnation of wage growth.
Businesses have a disincentive to increase wages when they can maintain the status quo, as any increase in hiring affects their bottom line.
Missing from the candidates is any serious solutions beyond the same partisan rhetoric.
Each side blames the other and the American people suffer.
As I talk to many small businesses across the country in many different business fields each of them state that Washington can do more if they reform the complex tax code, end burdensome regulations, and the Affordable Care Act is punishing businesses growth.
One can argue about polices but one cannot argue against facts the economy is improving but at a much slower pace than should after a severe recession.
The problem Washington is the problem and not the solution.
Now is the time to challenge both Democratic and Republican candidates from president and stop having them feed us campaign economics.
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