Business investment not more government spending key to job growth says Republican leader
Texas Insider Report: Washington D.C. Given how weak this recovery has been even moderate job growth is welcome" says U.S. Congressman Kevin Brady of Texas the top Republican on the Joint Economic Committee. But looking at the bigger picture 21 months after the recession ended we are still down more than 7.2 million jobs. Thats not acceptable by any standard."
Employment numbers for March show payroll employment gains of 216000 and an unemployment rate of 8.8.
A key to sustainable economic growth is the size of the U.S. labor force which is the lowest since the mid 1980s says Brady. That makes the unemployment rate look more attractive for the wrong reasons he says.
Theres no reason to celebrate a lower unemployment rate caused by more Americans leaving the workforce and fewer entering it. A small workforce means millions of discouraged workers lower output in the future and a weak recovery. Those are unhealthy signs" Brady points out.
The solution he says :Is to lower barriers to business investment which creates jobs along Main Street.
Rather than spending more Congress can help by doing less less deficit spending less taxes and less extreme regulations that drive up costs for businesses of all sizes" Brady said.
