After the release of April's job numbers by the Bureau of Labor Statistics shows the lowest unemployment rate in 18 years, Congressman Bob Latta (R-Bowling Green) is highlighting the effect that pro-growth policies are having for American families. The unemployment rate has now reached 3.9%, a number not seen since the year 2000. Unemployment claims are also the lowest they've been since 1973. In addition, a survey released by the human resources firm Paychex shows that wage growth among small business employees grew at an annual rate of 3.25% in April -- the highest rate in more than two years.
On top of low unemployment and increasing wage growth, businesses are reinvesting their savings from the Tax Cuts and Jobs Act. Predictions from the law's detractors that companies would not invest tax savings have been disproven by recent data. According to information compiled by UBS AG, S&P 500 companies that have already reported earnings show that capital expenditures grew a staggering 39% -- the fastest rate in seven years. According to a recent Bloomberg article, "The data is a fresh rebuttal to those who warned that hundreds of billions of dollars of tax relief will head directly to the stock market and be harvested by shareholders already fattened by a nine-year bull market."
Latta was able to see the effect of the Tax Cuts and Jobs Act in Ohio's 5th Congressional District when he visited SB Financial in Defiance on Thursday. SB Financial had provided raises and bonuses for employees, and this week they launched a voluntary employee initiative to give back to the local community using savings from the new law.
"All we've seen since the Tax Cuts and Jobs Act went into effect is more jobs, more money in Ohioan's paychecks, and more growth for America's small businesses and manufacturers," said Latta. "The good news kept on rolling Friday with the announcement by BLS that we dipped below the 4% unemployment mark for the first time in nearly two decades. In addition, the first hard data we have on how companies are using their tax savings show they are overwhelmingly pouring them back into their businesses. The American economy is soaring."