- The jobs report for June showed that the U.S. gained 4.8 million jobs back last month and the unemployment rate fell to 11.1% from 13.3% in May.
- President Trump touted the report in a press conference, saying the U.S. is seeing record-breaking numbers and that economy was coming back strong.
- However, as many pointed out, unemployment is still the highest its been since World War II and over 1 million people are still filing for unemployment every week.
- Others also noted that the data from the report is from the week of June 12 and does not show the recent business closures made by governors in several states reimposing restrictions due to coronavirus spikes.
- Economists have warned that the renewed closures in some states and the fact that many other states have slowed their planned reopenings will result in more layoffs.
June Jobs Report
The U.S. economy gained 4.8 million jobs in June and the unemployment rate fell to 11.1% from 13.3% the month before, according to a monthly report released by the Bureau of Labor Statistics (BLS) Thursday.
Following the publication of the June report, President Donald Trump touted the new numbers during a press conference Thursday morning.
“Today’s announcement proves that our economy is roaring back,” he said. “It’s coming back extremely strong.”
“This is not just luck, what’s happening. This is a lot of talent,” he continued. “All of this incredible news is the result of historic actions my administration has taken working with our partners in Congress to rescue the U.S. economy.”
Trump also repeatedly claimed the job gains and employment numbers provided in the BLS report were record-breaking on multiple fronts.
However, many have noted that the only reason the U.S. is seeing record-breaking job gains is because it has experienced the record-breaking job losses.
That fact has even been echoed by members of Trump’s administration, including Treasury Secretary Steve Mnuchin, who acknowledged that unemployment is still extremely high by historical standards at the press conference Thursday.
Throughout the pandemic, American’s have seen unemployment rates similar to that of the Great Depression. Even now, unemployment is still the highest its been since World War II.
What the Data Shows
There are still over 17 million American’s unemployed, according to the BLS report. While it is true that we gained 4.8 million jobs back last month, more than 1 million people filed for unemployment every week in June including this past week, which saw 1.4 new claims.
There are also a number of other indicators in the BLS data that show that American’s are hurting.
For example, while the number of people temporarily laid off decreased by 4.8 million, the number of permanent job losses actually increase last month, rising by over half a million to 2.9 million total.
That suggests that many of the people going back to work are those who were furloughed during the shutdowns, meaning that the economy is simply getting back jobs it had temporarily lost, not adding or creating new jobs.
That fact was also noted by numerous Twitter users who sought to point out the holes in the president’s remarks.
“No, Trump did NOT create 4.8 million jobs in June – some people went back to their old jobs,” one user wrote.
Many other users also compared the unemployment rates of Black people and other people of color to that of white people, likely in response to Trump championing minority job growth while speaking at the press conference Thursday.
“African-American workers, really happily for me, made historic gains, with 400,000 jobs added last month alone and that’s a record,” he said. “Hispanic employment is up by 1.5 million jobs, a record by a lot.”
However, the BLS data minority unemployment has consistently remained higher than white unemployment— especially for Black people. In fact, according to a report from Reuters, the gap in U.S. Black and white unemployment rates is widest its been five years.
“Jobless rates for both groups fell in June, but the rate for whites came down at a much faster rate. The white unemployment rate fell 2.3 percentage points to 10.1% from 12.4%, while the rate for Blacks dropped 1.4 points to 15.4% from 16.8%,” the report said.
According to the BLS data, unemployment fell from last both groups in general, the unemployment rate among Black men over 20 actually rose from May to June, growing from 15.5% to 16.3%
While the discrepancy between Black and white unemployment was the most significant, white unemployment is still quite a bit lower than Hispanic unemployment which was 14.5% last month, and Asian unemployment, which was 13.8%.
Those numbers appear to support the claims of numerous experts who have said that people of color have been disproportionately hurt by the economic crisis.
“Disproportionately, the layoffs have been in lower wage occupations, in lower wage positions,” Gary Burtless, a labor economist at the Brookings Institution told the New York Times. “That has disproportionately affected African-Americans and Hispanics.”
While the BLS report does show the discrepancies between Trump’s rosy outlook and reality, it is only part of the picture.
There are several issues with the BLS data, and the agency has made readily apparent. It has repeatedly warned that the actual unemployment numbers are higher than what has been reported because of flaws in the data collection process. On Thursday, the BLS said that it believes the official unemployment rate for June is actually a whole percentage point higher.
But that is not the only problem. Arguably the biggest issue is that the data in this report was taken the week ending June 12, and since then, a number of states have shut down businesses again in response to the recent spikes in coronavirus cases.
Just in the last week, the governors of Florida and Texas have shut down bars and other commercial activities. California has stopped indoor restaurant dining and closed movie theaters in most major cities. Arizona has also shut down water parks, bars, and gyms.
Numerous other states have postponed their planned reopenings. As a result, some workers are now reportedly getting laid off for the second time.
Those closures and delays are expected to grow as cases continue to surge. On Thursday, the U.S. reported a new record of 50,000 coronavirus cases on a single day. New cases have risen a whopping 50% in the last month, according to the Washington Post
With those numbers rising and states with huge economies like Texas and California reimposing restrictions, many economists are worried that Americans will see more layoffs.
“The virus drives the economics,” Betsey Stevenson, a member of former President Barack Obama’s Council of Economic Advisers told the Times. “We’re not going to have people going back to work. In fact, we’re going to see more people staying home.”
See what others are saying: (NPR) (The New York Times) (The Washington Post)
Donald Trump and Eldest Three Children Hit With Fraud Lawsuit From New York AG
AG Letitia James says that the former president “falsely inflated his net worth by billions of dollars to unjustly enrich himself.”
Lawsuit Filed Against Trump
New York Attorney General Letitia James announced on Wednesday that she filed a civil lawsuit against former president Donald Trump and his three eldest children over allegations that they fraudulently inflated asset valuations within the Trump Organization.
Donald Trump Jr., Eric Trump, and Ivanka Trump are all listed alongside their father in the lawsuit. Executives Jeffrey McConney and Allen Weisselberg, the latter of whom recently pled guilty to tax crimes, are also listed alongside other Trump businesses.
“Donald Trump, with the help of his children…and senior executives at the Trump Organization, falsely inflated his net worth by billions of dollars to induce banks to lend money to the Trump Organization on more favorable terms than would otherwise have been available to the company, to satisfy continuing loan covenants, to induce insurers to provide insurance coverage for higher limits and at lower premiums, and to gain tax benefits, among other things,” a press release announcing the lawsuit claimed.
The Attorney General’s office claims that between 2011 and 2021, Trump and the Trump Organization made 200 false and misleading claims about asset values on annual financial statements.
The lawsuit was filed Wednesday in a State Supreme Court in Manhattan.
“The complaint demonstrates that Trump falsely inflated his net worth by billions of dollars to unjustly enrich himself and to cheat the system, thereby cheating all of us,” James said while announcing the complaint.
Her office is seeking to permanently ban Trump and his children from serving as an officer or director in any New York corporation and to bar Trump and his organization from entering into any New York real estate acquisitions for five years. The office is also seeking to recover $250 million in penalty payments, among other forms of relief.
The Office of the Attorney General has also referred the matter to the federal attorneys in New York and to the IRS for criminal investigation.
“There aren’t two sets of laws for people in this nation: former presidents must be held to the same standards as everyday Americans,” James added in a statement on social media.
“Trump’s crimes are not victimless,” she continued. “When the well-connected and powerful break the law to get more money than they are entitled to, it reduces resources available to working people, small businesses, and taxpayers.”
Trump Allegedly Inflated Key Assets
According to James’ release, Trump “made known through Mr. Weisselberg that he wanted his net worth on his statements to increase every year.”
“And the statements were the vehicle by which his net worth was fraudulently inflated by billions of dollars year after year,” the release continued.
Among the assets Trump and his organization allegedly inflated was the Trump Tower Triplex, an apartment Trump allegedly claimed was 30,000 square feet when it is just around 11,000 square feet. Because of its ballooned size, the property was valued at $327 million in 2015, roughly three times as much as the sole apartment in New York City to ever sell for over $100 million at the time.
For further comparison, the highest sale for a listing in Trump Tower at the time was only $16 million.
Trump also allegedly claimed Mar-a-Lago was valued as high as $739 million based on the “false premise” that the property could be developed and sold for residential use. The lawsuit claims that Trump actually signed deeds donating those rights, limiting the property’s use to a social club. James and her office claim its value would fall closer to $75 million.
Inflated Clauations Cannot Be “Excused”
“The inflated asset valuations in the Statements cannot be brushed aside or excused as merely the result of exaggeration or good faith estimation about which reasonable real estate professionals may differ,” the lawsuit states, adding that instead, they are the result of improper methodology intentionally meant to falsely boost Trump’s net worth.
The investigation into Trump’s alleged fraud began nearly three years ago, and the former president has repeatedly called it a politically motivated witch hunt. His attorney, Alina Habba, doubled down on that rhetoric in a statement Wednesday.
“Today’s filing is neither focused on the facts nor the law – rather, it is solely focused on advancing the Attorney General’s political agenda,” Habba said. “We are confident that our judicial system will not stand for this unchecked abuse of authority, and we look forward to defending our client against each and every one of the Attorney General’s meritless claims.”
For his part, Trump has blasted the lawsuit on Truth Social, calling James a “fraud” and a “crime-fighting disaster.”
Trump previously tried to impede the probe but was ultimately ordered by a judge to sit for a deposition and turn over subpoenaed documents. Reports say he pled the fifth hundreds of times during his deposition.
See what others are saying: (Bloomberg) (The Washington Post) (Reuters)
Hurricane Fiona Causes “Catastrophic” Damage in Puerto Rico, Leaving Many Without Power
While power has been restored to some, more than a million remain without it as continued rainfall, flooding, and landslides are expected to cause further damage across the island.
Hurricane Fiona Wreaks Havoc
Hurricane Fiona made landfall in Puerto Rico Sunday, bringing heavy rains, flooding, and landslides, while also knocking out power for the entire island and killing at least one person.
Photos and videos posted on social media show floodwaters consuming major streets and engulfing cars. Some pictures show an entire bridge flooded, making it impassible. Other footage shows a different bridge entirely uprooted and a metal barrier ripped away from the road and floating down a river of floodwater.
Officials have said conditions are still too dangerous to fully evaluate the extent of the crisis. In remarks to the public, Puerto Rico’s governor, Pedro Pierluisi, described the damage as “catastrophic.”
He asserted that the storm has been one of the most significant since Hurricane Maria — which hit the island almost exactly 5 years ago to the day — killing more than 3,000 people, leaving many without power for months, and causing destruction that the island is still recovering from.
Pierluisi noted that Puerto Rico has received over 30 inches of rain and that some areas have even gotten more rain than during Hurricane Maria. As of Monday afternoon, the National Gaurd has led 30 rescue operations so far, saving more than 1,000 stranded residents in 25 municipalities, according to the governor.
Pierluisi also added that more than 2,000 people were in the island’s 128 shelters, with officials further saying there is plenty of shelter space for those who need it. On Sunday, President Joe Biden approved an emergency declaration for Puerto Rico, which will allow federal agencies to coordinate disaster relief.
Continued Issues As Storm Rages On
Meanwhile, Puerto Rico’s water authority has confirmed that just over 70% of the island is still without water. According to poweroutage.us, more than 1.3 million customers were still without power as of Monday morning.
The power company LUMA also stated that electricity had been restored to around 100,000 customers over the course of Sunday night, though it previously warned that the full restoration of power could take several days as the storm has created “incredibly challenging” conditions.
While Hurricane Fiona has passed through Puerto Rico, having now made landfall in the Dominican Republic, officials and experts say that heavy rains and further flooding are still to be expected for the next few days.
The National Weather Service has warned that “life-threatening and catastrophic flooding” as well as mudslides and landslides are expected to continue across the island. As a result, Pierluisi has urged Puerto Ricans Monday to remain home and in shelters so that officials can continue to respond to others in need.
He also noted that the areas most impacted by the hurricane include the southern part of the island, the southwest, and the mountains.
After moving through the Dominican Republic, Hurricane Fiona is expected to head towards Turks and Caicos Tuesday. The National Hurricane Center has said that the storm will continue to grow and by Wednesday, it is set to become a major hurricane — which means a Category 3 or higher.
See what others are saying: (The New York Times) (The Washington Post) (CNN)
Government Aid Cut Child Poverty in Half During Pandemic, Data Shows
The reduction occurred similarly across geography, race, family type, and citizenship status.
Largest Drop in Half a Century
The United States’s child poverty rate sank to the lowest level on record last year, primarily thanks to pandemic relief measures and other government programs, according to an analysis of census data released Tuesday.
The Center on Budget and Policy Priorities analyzed data from the Census Bureau’s supplementary poverty measure, which accounts for safety net programs and tax credits as well as regional differences in the cost of living.
From around 11% in 2019, the percentage of kids living below the poverty line fell to 9.7% in 2020 and 5.2% the year after that.
In just two years, nearly 5.5 million kids were lifted from poverty, marking an almost 60% drop in the child poverty rate.
The Center’s researchers gave most credit to the federal government’s numerous interventions in the economy, from stimulus payments and the expanded child tax credit to eviction moratoriums and expanded unemployment insurance.
Without government intervention, poverty in 2020 would have experienced its second-largest recorded increase, the Center claimed, but instead, it underwent the largest single-year decline in over half a century.
Especially impactful was the expanded child tax credit, which sent up to $300 per child to households with children every month between July and December 2021.
According to the analysis, this policy alone pulled nearly three million kids out of poverty.
But the tax credit’s expansion expired at the end of the year despite Democrats’ efforts to prolong it with Biden’s signature Build Back Better bill, which was blocked by Sen. Joe Manchin (D-WV), who reportedly told colleagues he was concerned that families might use the payments to buy drugs.
Poverty Before COVID
Child poverty has fallen by 59% since 1993, when it sat at around 28%, according to another analysis published Sunday by The New York Times and the nonpartisan group Child Trends.
They found that the decline occurred across all 50 states and D.C., as well as in different levels of poverty.
It similarly affected nearly all subgroups of children, — white, Black, Asian and Hispanic, single-parent and two-parent, immigrant and non-immigrant.
The causes driving the pre-pandemic decline included general economic improvement — low unemployment, a higher labor force participation rate among single mothers, and growing state minimum wages — but the researchers pinned government welfare programs as the dominant factor.
They specifically mentioned the earned income tax credit, social security, unemployment insurance, and nutrition and housing assistance.
Despite the positive trend, more than eight million children still live below the poverty line, and that number excludes those who live just above it but still struggle to meet basic needs.
The current poverty line sits around $29,000 for a family of four in a location with typical living costs.
Moreover, disparities still persist, with Black and Latino children about three times as likely as their white peers to be poor.