A discouraging jobs report has driven the Stock Market down and shaken faith in an already slow economic recovery.
Congressman Adrian Smith said the numbers just don’t look good. He says one figure, in particular, grabs his attention: 300,000 more Americans joined the ranks of the long-term unemployed.
“I think that is a very important number to look at and I think the excessive regulations facing our economy and what I would call bad tax policy has made us less competitive in many ways,” Smith told reporters during a conference call this morning.
The United States Labor Department reported that job growth halted in May. The economy created 69,000 jobs, far below expectations. The weak job creation drove the unemployment rate up a tenth of a percent to 8.2%. The news rocked the Stock Market. The Dow Industrials fell by more than 270 points to 12,118.57.
The jobs report indicated strength in manufacturing, wholesale trade, retail, real estate, finance, health care and non-government-related education. Hiring fell in government and construction.
Congressman Smith said Congress needs to work to reduce regulations on business to free small business owners to create jobs.
“The current administration has actually proposed over 3,000 new regulations with 167 considered to be economically significant, meaning that they will cost our economy roughly $100 million or more,” according to Smith.
Smith also advocated federal tax reform. The Congressman said President Obama’s insistence that taxes must be raised on the rich might make good politics, but a calculated approach to better tax policy would address small business needs.
“I struggle to think when a tax increase has ever created a job, other than maybe at the IRS,” Smith stated.
AUDIO: Congressman Adrian Smith comments on jobs report. [3:15]