The U.S. economy is now in a “severe recession,” with 7.2 million people out of work and another 3 million looking for work, according to the Labor Department.
The unemployment rate is now 6.6%.
President Donald Trump, who had hoped to get the jobless rate down to 5%, announced the first phase of the tax cuts Thursday and said he is “just getting started.”
He said it will allow companies to “cut their payrolls, save more money and hire more people.”
But even though the tax cut has already been announced, the economy is not yet in full recovery mode, the New York Times reported.
“There’s been a lot of momentum in the economy since President Trump took office,” said Mark Zandi, chief economist at Moody’s Analytics.
“But the economy isn’t fully recovered yet.
We’re in the fourth quarter, and the unemployment rate still is too high.
So we need to keep the momentum going and see if we can keep the unemployment down.”
Trump and Republicans have pushed back against the numbers.
House Speaker Paul Ryan has said that the unemployment numbers are wrong and that the economy could be better off with a bigger tax cut.
“We don’t believe that there is a lot that can be done to address the underlying economic issues that are driving our unemployment,” he said.
“The president is making it very clear that we’re not going to allow a tax cut to go to waste, and we’re going to continue to be a strong economic engine for this country,” he added.
Democrats are not buying it.
“We don´t have a plan to fix our economy,” said House Minority Leader Nancy Pelosi, a Democrat from California.
“This is not a plan that can solve our economic problems.
It is a plan designed to make life harder for millions of Americans who have lost their jobs.”
The tax cuts will add to a $700 billion budget deficit for the next year.