Our economy is roaring back to life. Over 1.7 million business applications have been filed, and some 1 million seek to open a business that will hire workers.
States such as South Dakota have recovered up to 80% of the jobs lost to layoffs. New unemployment claims are plummeting. Month after month, we’re seeing improving economic numbers.
It’s a good feeling, and one we’ve grown accustomed to during President Trump’s first term. It’s a feeling people need to experience for the next four years.
Thanks to Trump’s pro-growth, pro-worker reforms, the economy was firing on all cylinders before the COVID-19 pandemic. We had low unemployment, the stock market reaching new heights, and wages were growing. The Trump economy was one worthy of pride. For more than a year, we had more jobs than available workers to fill them, a good problem to have.
This economic boom was temporarily blocked by the pandemic, and a large part of that was due to financial disincentives to work. After Congress passed the CARES Act and implemented a boost in unemployment insurance, some 70% of workers were receiving more money on unemployment than they could have received from their jobs. The result, predictably, was workers refusing to return to work in order to continue receiving unemployment.
Refusal to return to work has led to a flurry of economic disasters across the nation. Without employees, small businesses struggled to reopen or have closed permanently. This loss of income and revenue has further strained government assistance programs and their ability to help the truly needy.
The CARES Act unemployment boost expired July 31 and was not fully renewed. As the lockdowns lift and people start going back to work and school, we’re seeing a glimpse of what once was and what is attainable once again. Getting back to a strong economy will require continued strong leadership in Washington.
Fortunately, leading up to the Republican National Convention, Trump unveiled an aggressive and forward-thinking agenda for his second term that should instill confidence in workers and their families. The agenda covers everything from small business growth to affordable healthcare, with an emphasis on freeing people to make the best choices for themselves and their families. It’s an agenda for a strong future for our country.
In the president’s acceptance speech at the convention, he promised to “again build the greatest economy in history, quickly returning to full employment, soaring incomes, and record prosperity.”
One of the best ways to go about accomplishing the president’s goals of strengthening the economy is to ensure that people are never again paid to stay at home rather than work. Refusing suitable work to continue collecting unemployment is fraud, and it harms our communities. Congress must stand with small businesses and towns across the nation by not giving in to pressure from the Left to renew any boost in unemployment payments.
The good economic news of recent months is the sign we needed to remind us that Congress should not extend any unemployment bonuses, nor do states need a financial bailout. South Dakota Gov. Kristi Noem’s rejection of any new unemployment boosts and success in leading her state through the health crisis is further proof of that. The best bailout for states comes from people going back to work and getting our economic engine running at full speed.
We’re already seeing improvement since the $600 unemployment boost expired. Between July 25 and August 15, new unemployment claims dropped by nearly a third and in some states by nearly 70%. Nearly 2 million people left the unemployment program during this time, as well. If this trend continues, new unemployment claims could reach pre-COVID-19 levels by the end of September.
The good news isn’t all in unemployment numbers. The new business growth is 64% higher this year than during the same period last year. It’s also the highest level ever recorded. Online job numbers are up nearly 16%, similar to 2017 levels. The Atlanta Federal Reserve’s real-time GDP growth estimate has more than doubled since July 31. Residential construction dramatically outperformed expectations, skyrocketing to nearly 23%, higher than during this time last year. Retail and food services are posting higher sales, and manufacturing is at an 18-month high. A full recovery is underway.
With all this good news to bolster the national mood, it’s fitting that the Republican National Convention was centered on this land of heroes, of promise, of opportunity, and of greatness. Momentum is on the side of families as we continue the work to restore the country’s economy.
Nick Stehle is the vice president of communications at the Foundation for Government Accountability.
