Kerby Anderson

Earlier this month we saw two contrasting views of how to create jobs and raise wages. After Nancy Pelosi was reelected Speaker of the House, she gave a speech that outlined what she and her fellow Democrats wanted to do to help American workers. She said they would “be champions of the middle class, and all those who aspire to it.” How did she plan to do this? She said they would “increase paychecks by rebuilding America with green and modern infrastructure.” As I have discussed in previous commentaries, the plan for a Green New Deal was tried before without much success. Moreover, it is difficult to see how that will raise wages. The day after she spoke, the Labor Department released the December jobs report. Employers created 312,000 new jobs in the month. There was also an upward revision of 58,000 jobs for October and November. This was incredibly good news for American workers. The unemployment rate rose from 3.7% to 3.9%. But even that was good news. About 419,000 workers joined the labor force and were rushing back to work. Also of note was the fact that manufacturers added 32,000 jobs in December. During the Obama administration, manufacturing employment fell by 210,000. In the first two years of the Trump administration, it has risen by 473,000 jobs. I will leave it to economists to debate what policies should get credit for an outstanding jobs report. It seems pretty obvious to me that cutting taxes last year and cutting regulations the last two years explains what is happening in the economy. More jobs and rising wages did not come from more government investment in green infrastructure. The first week of the New Year provided two different visions of how to create jobs, raise wages, and grow the economy. The latest jobs report helps us see what is working.