As Republicans Spin Job Numbers, Small Business Bill Waits

This morning, the Bureau of Labor Statistics reported that the U.S. economy shed 54,000 jobs in August, far less than the 105,000 economists predicted. The private sector also added a better-than-expected 67,000 jobs for its seventh consecutive monthly gain.  Overall, the unemployment rate ticked up by 0.1 percent.   

While the report was better than anticipated, it is also a reminder that the economy still has a long way to go.  Predictably, Republicans are already spinning the statistics for political gain.  In a statement, House Republican Conference Chairman Mike Pence (R-IN) declared that President Obama's economic policies have "failed" and alleged that small businesses aren't hiring because they are afraid of tax increases:       

Democrat [sic] policies of taxing, spending and bailouts have restricted job creation and caused uncertainty among small business owners. Instead of being able to invest in their companies and workers, job creators are bracing for the devastating tax increases that Democrats plan for January 1, and the dramatically higher health care costs that will be a consequence of ObamaCare. Washington desperately needs to return to the proven formula of fiscal discipline and fast-acting tax relief that will put Americans back to work.

We already know that the Recovery Act is responsible for up to 3.3 million jobs, according to the nonpartisan Congressional Budget Office.  But that number doesn't jibe with GOP talking points, so Pence pretends it doesn't exist.  Meanwhile, his argument about why small businesses aren't hiring is contradicted by small business owners themselves, who say low demand — not taxes — is their major worry.   

Pence is right about one thing, though: we need to do more to spur job creation.  And, fortunately, there's a bill in Congress that would give small businesses some much-needed help.  The only problem is that Republicans are blocking it in the Senate, leaving small business owners no choice but to sit on their hands.  As USA Today reports:  

Small businesses have put hiring, supply buying and real estate expansion on hold as they wait out the vote on a small-business-aid bill that stalled in the Senate earlier this summer.

The much-debated legislation offers tax breaks and waived loan fees. But it also comes with more divisive components, such as a $30 billion fund that would help community banks give loans to small businesses. Opponents say the fund would be a mini version of the often-criticized TARP large-bank bailout program.

Many small businesses had hoped the legislation would pass the Senate by the end of July. With two weeks left until Congress reconvenes, those firms are in a holding pattern.

Earlier this week, President Obama asked Republicans to "drop the blockade" on the bill, a request that he reiterated today.   Just a few minutes ago on Fox News, Pence described the small business aid package as "kind of a small business-oriented bank bailout" and complained about the scheduled expiration of the Bush tax cuts for the wealthy — which would affect only 1.9 percent of small businesses.