Jobs Report Shows Shrinking Economy (9/10/07)

A report by the U.S. Department of Labor shows the most significant loss of jobs in four years, raising fears of recession among many analysts. According to the report, the economy shed 4,000 jobs in August, and local government hiring has fallen by more than 100,000 jobs in the past three months.

Some critics of Bush policy cite the fact that while the U.S. economy has added millions of jobs since the 2003 tax cuts, many of those were jobs recovered from previous Bush-era losses, and that real wages for typical workers have stagnated during that time while the percentage of workers receiving health benefits from their employers has continued to fall.

The recent news caused stocks to skid, with both the Dow Jones and Nasdaq market falling 1.9 percent.

"This report on the U.S. economy is just further indication that we are headed in the wrong direction under the current administration," said RWDSU President Stuart Appelbaum. "It's becoming apparent that you cannot sustain economic growth built upon the Bush tax cuts for the rich , which have done nothing but pad the bank accounts of people who are already wealthy. The economy is spurred on by middle-class spending and real job creation, not by extra luxury purchases by the rich."