Issue Report
For Immediate Release: 
September 13, 2019
Contact Info: 
Mariel Saez 202-225-3130
Economy Weekly: Week of September 12, 2019

The Majority Leader’s Office will begin sending a weekly e-mail highlighting economic statistics and news that Members can use as they discuss the state of the economy and how House Democrats are working to spur economic growth, support job creation, and raise wages for the people.

QUOTE OF THE WEEK: “While news that President Trump plans to postpone the latest round of tariffs on $250 billion worth of Chinese imports for 2 weeks will likely soothe the market, his tariffs have already done a number on the U.S. economy. ‘The data speaks for itself,’ Torsten Slok, chief economist at Deutsche Bank Securities, says in a note to clients. ‘The trade war is having a serious negative impact on the U.S. economy.’” – Axios [09/12/19]

STAT OF THE WEEK: President Trump’s health care sabotage efforts have increased the number of uninsured by two million, including 425,000 children. This is the first time in a decade that the uninsured rate has increased. From the New York Times: “About 27.5 million people, or 8.5 percent of the population, lacked health insurance for all of 2018, up from 7.9 percent the year before, the Census Bureau reported Tuesday. It was the first increase since the Affordable Care Act passed in 2010, and experts said it was at least partly the result of the Trump administration’s efforts to undermine that law.” [NYT, 09/10/19]

ECONOMIC NEWS YOU MAY HAVE MISSED
  • The August jobs report under-performed expectations – a result attributed largely to the uncertainty caused by President Trump’s trade war. “Hiring slowed in August as employers added 130,000 jobs, further stoking recession fears and strengthening the Federal Reserve’s argument for another cut in interest rates this month...” [USA Today, 09/06/19]
  • For the first time in three years, U.S. manufacturing has experienced a contraction. “A key U.S. factory gauge unexpectedly contracted for the first time since 2016… The Institute for Supply Management’s purchasing managers index fell to 49.1 in August… Figures below 50 indicate the manufacturing economy is generally shrinking.” [Bloomberg, 09/03/19]
  • Wages for workers are stagnant, despite President Trump’s promise that his tax cuts for the wealthy would turn into a $4,000 pay raise for average workers. “With such a tight labor market and rising productivity, workers should expect much bigger pay raises than they’re getting. Private sector workers (excluding farmworkers) got an average 11-cent hourly raise, adding up to an average hourly pay of $28.11. In the past 12 months, average hourly earnings have increased by 3.2 percent. That’s a slight uptick from previous months but still represents disappointing pay growth when adjusted for inflation.” [Vox, 09/06/19]
  • According to the American Farm Bureau, farmers are being pushed to file for bankruptcy, as a result of President Trump’s trade war. “The delinquency rates for commercial agricultural loans in both the real estate and non-real estate lending sectors are at a six-year high... Across the U.S., farm loan delinquencies and Chapter 12 bankruptcies are rising.” [Farm Bureau, 07/31/19]