The unemployment rate was lower in the late 1990s, but that proved unsustainable when the tech bubble collapsed in 2000. Again, this is low but not excessively so. The unemployment rate increased a statistically insignificant 0.1 percent to 4.6 percent in January. That is good job growth, but not excessive. Revisions to earlier figures also revealed that employers created over 400,000 more jobs in 2006 than the government had previously estimated. Should you start a new business in a goldilocks economy professional#Entrepreneurs and businesses created 111,000 new jobs in January, most of those in professional and business services, education, and health. This growth rate is above historical averages but is still moderate enough to ease fears that the economy could enter an inflation-induced bubble. The economy grew 3.4 percent in 2006, slightly more than in 2005. It increased at a 3.5 percent pace in the fourth quarter of 2006, above expectations and up from 2.0 percent in the third quarter. The economy is growing at a good pace, and Members of Congress should not do anything to harm that. This would be a heavy blow to American workers. Each of these tax hikes-and especially all three together-would impose strong disincentives to work, save, and invest. Three different tax hikes are being discussed in Congress to pay for more spending: the automatic tax hike from the Alternative Minimum Tax (AMT) raising the cap on wages that are subject to payroll taxes and repealing the Bush tax cuts. That is why Congress should not impose a triple whammy of tax hikes on the American workers who are doing so much to keep the economy growing. Because it is not entering an inflationary boom the Federal Reserve can keep interest rates low. It is growing, adding jobs, increasing wages, and staying well away from a recession. Like Goldilocks's breakfast, the economy is neither too hot nor too cold.
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