The U.S. Economy is Strong and Resilient

Contrary to the negative characterizations being expressed by many Republican politicians, the facts are clear – the U.S. economy is demonstrating a great deal of strength and resilience.

The latest Consumer Price Index report revealed that inflation has fallen for the 12th straight month. The current level of inflation is 3%, less than half of what it was a year ago, and increasingly close to the Federal Reserve’s ideal level of 2%.

The latest jobs report showed an increase of 209,000 nonfarm jobs. This was the 30th straight month of U.S. job increases. The unemployment rate fell to 3.6%, a five-decade low. Wages grew by 4.4%, exceeding the inflation rate by almost 1%.

These two reports are strong indicators that the U.S. economy is moving in a very positive direction.

The major legislative acts passed by the Democratic-majority congress and signed into law by President Biden have made, and are continuing to make, very significant contributions to strengthening the U.S. economy. Some examples of the benefits of these laws:

• The American Rescue Plan Act (ARPA) stimulated the economy during the COVID-19 pandemic by means of direct payments to individuals, extended unemployment benefits, emergency rent assistance, enhanced child tax credits, low-cost loans to businesses (PPP loans), and financial aid to state, local, and tribal governments.

• The Infrastructure Investment and Jobs Act (IIJA) is providing funds to rebuild America’s roads, bridges, and rails; upgrade our nation’s airports and seaports; strengthen our supply chains to prevent disruptions that have caused inflation; ensure every American has access to high-speed internet service; deliver clean water to every American, and eliminate the nation’s lead service lines.

• The CHIPS and Science Act is funding major investments in American development and production of semiconductors, the technology that forms the foundation of everything from personal computers to automobiles to household appliances to defense systems. This act also provides funding for the education and training of American workers, who will be able to qualify for good-paying jobs in science and technology industries.

• The Inflation Reduction Act is contributing to the reduction of inflation by allowing Medicare to negotiate for lower drug prices, lowering the cost of clean energy by increasing the supply of this “energy of the future”, and reducing the federal deficit by closing loopholes that allow wealthy corporations and individuals to avoid paying the taxes that they owe.

The federal deficit could be further reduced by modest increases in the taxes paid by wealthy corporations and individuals. Unfortunately, such action is being blocked by congressional Republicans.

In order to continue the growth of the U.S. economy and to reduce the federal deficit, we the voters need to elect more Democrats to congress and we need to re-elect President Biden.

Larry Feldman

Lakeside