Pumping more money into a bustling U.S. economy would be damaging, says former New York Rep. Peter King.
''We no longer have the need to be pumping so much money into the economy,'' King, a Republican, said Friday while appearing on Newsmax's ''American Agenda'' following the jobs report released Friday that showed 850,000 jobs were added in June, a 3.6% rise from a year earlier.
''The economy is doing well enough on its own right now. What we could do, which would be very damaging, is to start increasing taxes. This economy is expanding, but it's going to start slowing down a bit as these jobs become filled. … Let's leave well enough alone. No need for new taxes, and let's cut back on some of the new spending.''
The $1.9 trillion American Rescue Plan, which Congress passed in March without any Republican support, pumped money into businesses, households and local governments.
As employers post job openings at a record pace, they're complaining that they can't find enough workers to fill jobs. Economists expect the supply of workers to gradually catch up with demand. Some Americans are delaying their job search because of lingering health concerns, difficulty making child care arrangements, or generous — though temporary —federal unemployment benefits. Others have decided to retire early or train for a new career.
The economy remains 6.8 million short of the number of jobs it had in February 2020, just before COVID-19 flattened the economy.
A hot labor market, and perhaps a rethinking of personal priorities amid the pandemic, has led many Americans to leave their jobs and look for higher-paying or more satisfying work elsewhere. In June, 942,000 people were unemployed because they voluntarily left their old employer. That was up 21% from 778,000 in May, and it's the highest such monthly figure since 2016.
''Workers clearly know that they are in the driver's seat right now, and many appear willing to walk away from their current position before they have even a new job lined up,'' says Stephen Stanley, chief economist at Amherst Pierpont Securities.
Information from The Associated Press was used in this report.
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