Job creation smashed expectations in December, as employers finished the hiring season strong, optimistic about the end of Bidenomics and the return of the Trump bump. Employers added 256,000 jobs last month, and the unemployment rate fell to 4.1%. So much for Federal Reserve Chairman Jerome Powell’s weakening labor market.
It’s New Year in America again.
To continue this labor market and economic momentum, incoming Republicans must pass pro-growth legislation centered on an extension and expansion of the Tax Cuts and Jobs Act as soon as possible.
Friday’s job numbers reflect JCN’s small business polling showing a record surge of optimism and hiring among job creators who are confident in President Trump’s agenda of deregulation, tax cuts, energy dominance and low inflation.
Consider the story of Carlos Gazitua, a South Florida restaurateur whose story is typical. “The election gave us the opportunity to move forward” on several new investments, such as opening two new restaurants that will cost $2 million and hiring 100 employees, he said. “I don’t think we would have done it” if Democrats had won.
Bidenomics and bad Democrat policies led to surging costs that forced many of Gazitua’s customers to eat at home rather than at his restaurants. As a result, he held off on expanding — even when offered favorable lease terms. Inflation increased 21% over President Biden’s term, more than average wages, resulting in declining living standards for ordinary Americans.
That’s all changed with the election. Now customers are confident and spending again. Gazitua notes his revenue has increased by 10% to 15% each week since the election, with a 25% spike before Christmas.
It’s a similar story for Tristan Hamberg, owner of Refined Painting Services in Gresham, Oregon. He plans to add two full-time employees and convert five part-timers to full-time due to his confidence in the Trump economy.
He notes how Trump’s energy dominance and deregulation efforts will make business easier and give his customers more disposable income. He expects revenue to grow 20% next year.
These small business stories playing out across the country are responsible for Friday’s jobs boom. No wonder small businesses supported Trump over Harris in the election by 16 points.
Trump and Republicans can reward this support by quickly extending and expanding the Tax Cuts and Jobs Act. Doing so would lock in and build on the lower rates, 20% tax deduction, and immediate expensing that have been lifelines for Main Street during the difficult economic times of the past few years.
Small businesses were relieved this week to see Trump support congressional passage of “one powerful bill,” with tax cuts at its heart, as soon as possible. Main Street deserves tax certainty to invest, hire, and plan for the future.
Republicans should use their political capital to get this victory now rather than putting tax cuts on the backburner. The last thing small businesses need is for tax cuts to get bogged down by the typical DC inertia.
I’ve long argued that the economy runs on sentiment how small businesses and consumers are feeling — more than anything else. But it’s also vital to have policy wins to back this up.
We’re all looking forward to seeing Trump and congressional Republicans hit the ground running and justify the American optimism responsible for this labor market rebound.
Alfredo Ortiz is CEO of Job Creators Network, author of “The Real Race Revolutionaries,” and co-host of the Main Street Matters podcast.
The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.
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