WASHINGTON, DC – Ways and Means Committee Chairman Jason Smith (MO-08) released the following statement after the April jobs report revealed that job growth in the previous two months was far worse than originally thought and in line with a continued slowdown in job creation:
“Following last month’s first quarter GDP report showing a dramatic slowdown in economic growth and the Federal Reserve’s decision this week to yet again hike interest rates to combat inflation, the headline number of today’s jobs report covers up the underlying data showing that job creation in February and March was far below what was originally reported. This is further evidence that President Biden’s agenda continues to fail working families and Main Street businesses. While the Biden Administration is sending billions in taxpayer dollars to Chinese companies in the form of special interest ‘green’ energy tax breaks to boost China’s manufacturing base, he’s proposing $1.8 trillion in tax hikes on American small businesses.
“Anyone who has spent time listening to working Americans is not surprised by the state of the labor force. As the Ways and Means Committee travels to hear from small business owners and workers, it’s clear that inflation, rising interest rates, and Washington paying workers to sit on the sidelines have forced Main Street to make tough choices. Some have even shut businesses for good. House Republicans are focused on helping small businesses expand, hire new workers, and win against their Chinese competitors. A key step in the right direction would be for Democrats to actually work with Republicans to address the debt ceiling, rein in spending, and enact policies that will lift more Americans out of poverty.”
- Job numbers for February and March were revised downward by 78,000 and 71,000, respectively.
- Layoffs rose by 248,000 according to the Jobs Openings Labor Turnover Survey
- Since President Biden took office, inflation has cost the average household $10,000, while real wages have declined 3.5 percent.
- President Biden’s latest budget proposal would impose $4.7 trillion in new tax hikes – including $1.8 trillion in tax increases on small businesses.
Warning Signs Blinking: Recession Approaching
- NFIB’s Small Business Optimism Index shows American small businesses continue to grow more worried about future economic conditions.
- The National Association for Business Economics survey expects a recession in 2023.
- S. Economic Leading Indicators shows the economy is weakening and will likely enter into a recession later this year.
- Bankrate’s Economic Indicators survey forecasts a 64 percent chance of the economy contracting by the end of the year.
In Their Own Words: American Small Business Owners
At Ways and Means Committee hearings in Appalachia, the Heartland, and the South, small business owners shared how they are struggling to stay open:
- West Virginia – Ashley Bachman, mother of three and local restaurant owner: “Unfortunately, after COVID we have been hit with another crisis. The crisis of rising costs of everything…Our little restaurant has been bleeding money due to all the increased costs and I don’t know how much longer we’ll be able to continue with the prices the way they are…” February 6, Field Hearing on the State of the American Economy: Appalachia
- Oklahoma – Chuck Mills, owner and operator of his family’s manufacturing company: “The lack of workforce and supply chain issues, combined with inflationary pressures, have made this economy the most difficult economy I have dealt with in over four decades.” March 7, Field Hearing on the State of the American Economy: The Heartland
- Georgia – Matt Livingston, owner of a small home construction business and family restaurant: “I’m not sure anything I could say will change the minds of those that believe this economy is thriving or it is the best that it has ever been. Anyone that has those beliefs obviously has not been to my small town.” April 21, Field Hearing on the State of the American Economy: The South