Low January Job Numbers Hurt American Workers, Professional, Blue Collar, Union and Working-Class Americans.

Low January Job Numbers Hurt American Workers, Professional, Blue Collar, Union and Working-Class Americans.

(ThyBlackMan.com) A great discussion regarding the economic future of the United States is taking place in New York city and we all should pay close attention to it, and weigh-in with our own opinion. Here is the discussion in a nutshell. Recently elected Mayor Zohran Mamdani is facing the question, of how New York, the largest city in the United States, is going to pay its bills, and beyond that, how is he going to deliver on his promises to his constituents.

Just as Mamdani supporters are looking to him for solutions, working class people, who shifted their vote to Donald Trump, electing him to the presidency of the United States, are also asking, when will his indifference to their Job situation end, saying the nation is at full-employment: that the United States has a full employment economy, when it clearly does not.

The unemployment rates for January were published by the Bureau of Labor Statistics (BLS) showing “the official rate of unemployment” (the U-3 category rate from the chart of Alternative Measures of Labor Underutilization) dropped to 4.3%, a decrease from December’s rate of 4.4%. The Trump administration is telling us, as he wrongly promotes this rate, the U-3 rate, as the most comprehensive rate of unemployment, that 95.7%, or an estimated 96% of approximately 170 million working Americans are fully employed. Not only are these American workers fully employed, but his statistics also imply, if these fully employed Americans, if they wanted to switch Jobs in pursuit of a better Job, they could do this with relative ease, as there are enough Jobs being produced monthly, to allow them to do so.

Additionally, the monthly Jobs report states 130,000 new Jobs were created in January. November Jobs numbers were revised down, by 15,000, from 56,000 to 41,000, and the change for December was revised down, by 2,000 from 50,000 to 48,000 Jobs. With these revisions, per the BLS, employment in November and December combined is 17,000 lower than previously reported. So, the 3-month average of Jobs created in the largest economy in the world is 73,000 Jobs; woefully inadequate for the number of Job seekers in our economy.

Investopedia, a highly regarded financial educational web site, which states their experts offer more than 250 years plus of combined experience to ensure they are giving readers the most accurate information, states, “Unemployment of 5% or lower is often considered full employment in a real-world context.” Investopedia further states, “Full employment is an economic situation, where all workers and laborers who want to work are employed, making it the most efficient employment situation possible.” That is the kind of economy the Trump administration is telling American voters we have, but that is plainly untrue!

When we look at the most comprehensive unemployment rate per BLS economists, which experts state is the real unemployment rate (the U-6 category rate), that rate also dropped from 8.4% to 8.0%. The African American unemployment rate, which is 2.7% higher, over the real rate of 8.00%, topped out at 10.7%. While the trend of unemployment has been down over the last 3 months, there is no question the economy is not experiencing “the Blue-Collar Boom” promised by Trump, as the result of a Republican Congress passing the One Big Beautiful Bill (OBBB) Tax Cut for billionaires, millionaires and corporations and signed into law by Trump.

Here is what President Donald Trump said or was stated on the White House site on June 24^th , 2025, where the “One Big Beautiful Bill,” Trump’s tax cut proposal was promoted: “The One Big Beautiful Bill delivers for the American worker: The One Big Beautiful Bill delivers the largest tax cut for working-and middle-class Americans in history. Put simply President Trump’s One Big Beautiful Bill will unleash our economy and deliver a Blue-Collar Boom.”

Trump’s economy is consistent with the economy the nation saw and experienced in 1981 when former president Ronald Reagan passed the largest tax cut for billionaires, millionaires and corporations in history at that time. That tax cut, the Economic Recovery Tax Act (ERTA) was withdrawn with Reagan’s signature of approval. Congress had to undo the tax cut by increasing tax rates from 1982 through 1987. The basic reasons the ERTA was withdrawn, were 1) The tax cut aimed to stimulate the economy but led to increased budget deficits. 2) Critics argued it disproportionately benefited the wealthy, widening income inequality, and 3) Economic growth did not meet expectations, leading to disillusionment among supporters. (click on https://thyblackman.com/2026/01/03/can-president-trump-successfully-fix-the-economy-and-create-millions-of-jobs-while-reducing-inflation-in-2026/).

Nevertheless, we as a nation are now in a Top 10%-20% Billionaire and Millionaire Tax Cut Driven Economy. In other words, when Congress passed Trump’s $3.4 trillion Tax Cut, the benefits of that tax cut largely went to billionaires and millionaires. So, we are actually living in, and trying to survive this billionaire, and millionaire tax cut driven economy, which comes with high unemployment and low Job creation.

Kudos or praise should be heaped upon Mayor Mamdani, for confronting New York Governor Kathy Hochul, and New York billionaires and corporations, over the financial issues of New York city. The mayor wants to raise taxes or claw back the tax cuts, primarily from billionaires and millionaires, as did Congress back in the 1980s, when it came to former president Ronald Reagan’s tax cut, to cover the cost of running New York city. The governor and the wealthy are rebuking Mamdani. The rebuke, however, to some extent, is not without merit. Therein, lies the discussion, referenced above, that you should weigh-in on. Do you defend Mayor Mamdani’s efforts to raise taxes on wealthy elites and corporations?

If the tax cut to billionaires and millionaires are not producing enough Jobs, as did former president Reagan’s tax cut, and millionaires and billionaires do not want to give up their Trump tax cut, as a result of the OBBB; the most logical way out of this dilemma of rich, the top 10%-20%, versus the rest of the nation, the bottom 70%-80%, is to expand the economic pie, called the American economy.

Many admire Mayor Mamdani for having “the political will and courage” to confront the top 10%-20%, the so-called wealthy elite, if you will, by threatening to claw back the Trump tax cut, with a demand to tax them. His tactic is one way of addressing the issue of long-term Job creation. In doing what he’s doing, he is forcing the top 10%-20% of New Yorkers, and corporations to pay what he considers their fair share of taxes by raising their taxes, all in the name of benefitting the citizens of New York city.

However, there is another way to achieve, what Mamdani is attempting to do. And what he is attempting to do is, develop new streams of revenue for the New York city government, so the city government can address an unexpected $10 billion budget deficit, and deliver on his promises to his constituents. Rather than get into a contentious fight with wealthy elites, which he may not win, he should ask them, the top 10%-20%, for their support, to expand the economic pie, or the economies of New York city, the state of New York and indeed the nation.

Trump’s tax cut to the top 10%-20% is not meeting the nation’s expectations, when it comes to creating revenues, for our cities and states, and the tax cut is not creating the Job numbers, from which states, and cities can derive tax revenues. An expanding “healthy economy,” will create millions of Jobs, new businesses, and revenue streams to tax. What has been good for building wealth for elites and corporations, five major tax cuts since the late 1980s – can also build wealth for the nation, as a whole.

It is time to shift away, from a Billionaire-Millionaire Tax Cut Driven Economy to a Bottom 70%-80% Boomer Consumer Driven Tax Cut Economy. The bottom 70%-80% spend tax cut money differently, from billionaires and millionaires. Billionaires and millionaires are spending Trump’s tax cut money largely on real estate, and in the investment markets. Thus, we are seeing rents increase, when it comes to housing and apartments, and multiple new highs in the Dow Jones average and other investment markets. The bottom 70%-80% spend tax cut money on products and services, leading to increases in Jobs by the millions. As a result, new companies and businesses are created to meet the increase in demand of products and services, which of course leads to new taxable revenues streams, for cities, and states across the nation, and the federal government, which is what the nation needs.

Bottom line, the nation needs to dump the Billionaire-Millionaire Tax Cut Economy, that is not working, and go to a 10-year 70%-80% Consumer Driven Tax Cut Economy, as consumer spending is 70% of GDP (gross domestic product), where you are going to get “4 times the spending on products and services!” As a result, the nation is going to get more Jobs, and more producers in the marketplace, for Mayor Mamdani, and the state of New York to tax. By the United States going to a 10%, 10-year $25,000 Consumer Tax Cut Economy, which will cost approximately $1.7 trillion (far less than Trump’s $3.4 trillion tax cut) Mamdani and Hochul solves the issues, as does the nation, of how to deliver more services to VOTERS, and address deficits. Click on TheFixThisTime.com for details.

Staff Writer; James Davis

Mr. Davis is a Financial Analyst. His articles are about relating facts in a usable, truthful, and understandable way. That way, WE ALL WIN. James is, the author of three books, among them, “The Fix This Time,” Boost Your Retirement Income! Simultaneously Create Jobs and Spur Economic Growth (https://www.amazon.com/dp/B00MI3PD2M). Reach out to James @ his blog https://thefixthistime.com.

Question? Comment? One may use this email address; MrDavis@ThyBlackMan.com.