July in Trump’s Economy: Real Wages Fell, Consumer Prices Rose, More Workers Laid Off
August 16, 2019
Real wages didn’t go up, costs didn’t go down, jobs haven’t come back, and Trump’s tax law didn’t pay for itself or benefit workers. Just take a look at economic news over the past month:
REAL WAGES FELL IN JULY: Real average hourly and weekly earnings for all workers and for production and nonsupervisory workers declined for the month of July.
CNBC: “On the wages front, real average hourly earnings, when adjusted for inflation and hours worked, fell 0.1% for the month while real average weekly earnings were off 0.3%. On a year-over-year basis, the respective gains were 1.3% and 0.8%.”
BLS: “Real average hourly earnings for production and nonsupervisory employees decreased 0.2 percent from June to July… Real average weekly earnings decreased 0.5 percent over the month due to the decrease of 0.2 percent in real average hourly earnings combined with a decrease of 0.3 percent in average weekly hours.”
CONSUMER COSTS ROSE IN JULY: The cost of gas increased in July and health care costs jumped by 0.5% in July, after they had already increased by 0.3% in June.
CNBC: “Consumer prices rose more quickly than expected in July as gasoline reversed a two-month decline and the cost for rent continued to climb. … Healthcare costs jumped 0.5% after advancing 0.3% in June.”
MANUFACTURING DECLINED IN JULY: Manufacturing output fell in July for the fifth time in the first seven months of the year.
Associated Press: “The Federal Reserve said Thursday that the overall decline was caused primarily by a 0.4% drop last month in manufacturing production. Output decreased for autos, fabricated metals, wood products, textiles and plastics and rubber products. Over the past 12 months, factory production has fallen 0.5%.”
THE DEFICIT FOR 2019 HAS NOW REACHED 2018’s FULL-YEAR FIGURE, according to the Treasury Department’s report.
Bloomberg: “The U.S. fiscal deficit has already exceeded the full-year figure for last year, as spending growth outpaces revenue. The gap grew to $866.8 billion in the first 10 months of the fiscal year.”
NEW DATA SHOWS FOREIGN COMPANIES HAVE INVESTED LESS in the United States under Trump than they did under Obama, according to the Commerce Department.
New York Times: “Foreign investment in the United States grew at a slower annual pace in the first two years of Mr. Trump’s tenure than during Barack Obama’s presidency, according to Commerce Department data released in July.”
THOUSANDS MORE WORKERS WERE LAID OFF: After savings hundreds of millions of dollars from Trump’s tax law, Lowe’s announced it will lay off thousands of workers and it won’t offer them severance. Lowe’s spent billions to buy back its own stock, benefiting shareholders.
CBS News: “Yet when thousands of those workers recently got the boot, they received no notice and no severance. Instead, Lowe’s — a profitable company that spends billions buying back its own stock — offered the equivalent of two weeks ‘transition’ pay to full-time workers, some with the company more than a decade.”