Chief U.S. economist for High Frequency Economics and 19-time winner of MarketWatch’s Forecaster of the Month Contest, Jim O-Sullivan declares that the U.S. is on track to hit a 50-year low. “Unless employment slows dramatically, the unemployment rate will go to 3.5% in 2019. That would be a 50-year low for the jobless rate,” O’Sullivan says.
O’Sullivan’s solution is that “consumer prices and wages will start to accelerate once the unemployment rate falls below 4.5 percent or so,” according to Market Watch. According to Trading Economics, the unemployment rate fell from 3.9 percent from 4.1 percent in April of 2018. Perhaps O’Sullivan’s forecast that prices and wages will begin to accelerate to 3.13 percent by the end of 2019 will be possible.
President Trump signed the biggest tax cuts and reforms in American History, according to the White House Government website. The purpose of the tax cut was to provide relief to the middle class and small businesses. What the employment rates fails to count is the increases in wages that companies have awarded American workers due to Trump’s Job Acts and Tax Cuts. Read more about this story on Market Watch here.
Ultimately, “the U.S. economy is still benefiting from simulative monetary and fiscal policy,” according to Jim O’Sullivan. What do you think is to blame for the unemployment application rates hitting a 50 year low? 96% believe Trumps Job’s Act and Tax cuts are to blame, while 4% believe the blame is on the previous administration policy.
Here’s how people on the Zip app are weighing in on this all over the country!
Submitting of unemployment applications hit a 50 year low this month, why is that?
Zip users in 121 cities and 31 states weighed in on this question.