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WASHINGTON, D.C. -- In response to the report this morning from the Bureau of Labor Statistics that shows that U.S. unemployment fell to 8.4 percent during the month of August, 2020, Steve Moore, Chairman of the FreedomWorks Task Force on Economic Revival, commented:
“Ten million jobs have been added to the U.S. payrolls in four months. May, June, July, and August have been the four biggest job gain months in American history.
“In August, 1.4 million jobs were added. Wages were up significantly and blue collar jobs continue to climb. The unemployment rate fell to below 9 percent, which is an extraordinarily strong number given that six months ago the CBO and private analysts predicted a 15 to 20 percent unemployment rate through the end of the year.
“This is all happening as government ‘stimulus’ is falling. Trump’s policy response to get the V-shaped recovery has been mostly smart. The smartest policy was to stop the unemployment benefits at $600 a week, paying 80 percent of workers more for not working than working. Those payments were a deterrent to getting Americans back on the job. Trump was savagely criticized for ‘cruelty’ for cutting those benefits to $300 bonus payments a week and lo and behold, a million more Americans got into the labor force.
“Incentives really do matter. Cutting payroll taxes encourages work. Paying people $600 more per week in unemployment benefits discourages work.
“There are still 10 million Americans unemployed and a lot of work to be done, but Trump would be wise to forego another multi-trillion government spending stimulus package – and cancel the Pelosi blue state bailout.”