WASHINGTON, D.C.– Joint Economic Committee Democrats today issued a report in response to this morning’s release of the second-quarter gross domestic product (GDP) estimates by the U.S. Department of Commerce. The new JEC report details that large gains for a small group can keep total income growing, while many Americans continue to see their incomes shrink. The report also emphasizes that while GDP is an important indicator, it doesn’t show the entire country’s economic picture, and that the Republican tax plan does in fact benefit the wealthy while leaving working Americans behind.
“Touting GDP numbers to claim that the Republican tax law is improving the lives of all Americans is a poor interpretation of the current state of our economy,” said Senator Martin Heinrich (D-N.M.), Ranking Member of the Joint Economic Committee. “The truth is this—the Republican tax law benefits corporations and the wealthiest among us, all while working families continue to see little or no change in their wages. Instead of focusing on one economic indicator, we should be analyzing why many American families are struggling, and ensuring that everyone has a fair shot at getting ahead.”
The report highlights that the U.S. economy has hit the current level previously in the recovery, and there is no reason to believe that the tax cuts changed the long-term trend. Moreover, the Republican tax law is likely exacerbating income inequality in the United States—wages for workers are stagnant while gains for corporations are surging.
The report also points out that while the total size of the economy is important, GDP growth by itself doesn’t show how that change affects Americans on different parts of the economic ladder. It’s important that we develop new indicators to understand the whole story of how working families are doing across the economic spectrum.
Click here to view the report.
For more information, please contact Latoya Veal at Latoya_Veal@jec.senate.gov or 202-224-0379.