Jobs and the Economy
U.S. Manufacturing Shrinks for First Time in 2 Years: U.S. manufacturing shrank in June for the first time in nearly two years, another troubling sign for the economy, which is still faltering under the failed policies of President Obama. The Institute for Supply Management, a trade group of purchasing managers, reported that its index of manufacturing activity fell to 49.7. That's down from 53.5 in May and the lowest reading since July 2009. Readings below 50 indicate contraction.A measure of new orders fell below 50 for the first since April 2009. While the President often touts the recent growth of manufacturing jobs, the economy has actually shed 599,000 manufacturing jobs since the month President Obama took office and this news shows the sector could be in more trouble.
Federal Deficit Totals $844.5 Billion Through 8 Months of FY 2012: According to the Department of Treasury, the U.S. has racked up $844.5 billion in deficits through the first eight months (October 2011 – May 2012) of fiscal year 2012, keeping the nation well on track to hit the $1 trillion deficits number for the fourth consecutive year under President Obama. Prior to President Obama taking office, the highest U.S. deficit ever was $458 billion.
President’s Healthcare Law = Reduced Access for Medicare Beneficiaries, Higher Costs for Everyone Else: A May 2012 memo from the Centers for Medicare & Medicaid Service (CMS) Office of the Actuary discussed the projected payment rates for physician services, currently scheduled to be reduced by 31 percent in 2013 under President Obama’s federal takeover of healthcare law. Updating their original projections from 2010, the memo stated that the fiscal effects of the law would result in “negative total facility margins” (read: unprofitability, or losing money) for a significant percentage of hospitals, skilled nursing facilities, and home health agencies, concluding: “In practice, providers could not sustain continuing negative margins and, absent legislative changes, would have to withdraw from providing services to Medicare beneficiaries, merge with other provider groups, or shift substantial portions of Medicare costs to their non-Medicare, non-Medicaid payers.”
The Republican Plan for Job Creation and Growth
House Republicans have a plan to restore confidence and certainty to the economy and create jobs. For more information on the House Republican Growth Plan, click here: http://www.gop.gov/indepth/jobs.