Thanks in part to President Biden and Democrats’ economic plan, Michigan unemployment is down, more people are applying to start their own businesses, and our country is in a good position to fight inflation – no thanks to Republicans who voted against the American Rescue Plan and are more focused on helping their ultra-rich friends and playing political games than working towards solutions. Here are five key points about the current economy and how we got here:
President Biden and Democrats have delivered one of the strongest job markets in Michigan history
When President Biden took office, the unemployment rate was 6.4% in Michigan. Thanks in large part to President Biden, Governor Whitmer, and Democrats in Congress, the Michigan economy has added 242,600 jobs, the unemployment rate has dropped to 4.3%, and initial claims for unemployment insurance have fallen by 69%. After the pandemic put so many out of a job, Michiganders are getting back to work thanks to the American Rescue Plan – and no thanks to every single Michigan congressional Republican who opposed the critical relief package.
After shrinking in 2020, Michigan’s economy is growing fast
In the fourth quarter of 2021, Michigan’s real GDP grew by 5.8% – a stark contrast with 2020 when the state’s GDP actually decreased by 2.1%. In particular, in Michigan’s largest sector, manufacturing, real GDP grew by 9.2% in the fourth quarter of 2021. Growth in GDP means a growth in our economy.
Democrats are helping small business owners get started while Republicans have a plan that could raise their taxes
During President Biden’s first year in office, 59% more Michiganders applied to start more new small businesses compared to 2019. Meanwhile, Republicans have a plan that could raise taxes on over half of all small business owners in the state, that percentage rises to 82% if they make less than $50,000 a year. On average, the small businesses owners affected by this plan could see their taxes go up by $800.
Since President Biden and Democrats’ American Rescue Plan, poverty was projected to decrease in Michigan
Thanks in large part to Democrats’ American Rescue Plan – which passed without any support from congressional Republicans – poverty in Michigan was projected to decrease from 12.3% in 2018 to 6.3% in 2021, and for children under 18, from 11.9% in 2018 to 3.7% in 2021.
Democrats are taking action to address inflation
To help drive down costs, President Biden has authorized unprecedented releases from the U.S. oil reserves and House Democrats have passed legislation that would prevent price gouging on gas – no thanks to the Republicans who all voted against it. Meanwhile, President Biden’s Bipartisan Infrastructure Law and the American Rescue Plan are helping to lower costs on everything from child care to high-speed internet, and helping to bolster supply chains to make it easier for goods to get where they’re going.