South Court Auditorium Eisenhower Executive Office Building July 2 10:50 A.M. EDT
Good morning, everyone. It is a good morning. (Laughs.) It's a good morning. As we get prepared to celebrate Independence Day, today's job news brought us something else to celebrate. This morning we learned that, in June, our economy created 850,000 jobs. Eight hundred and fifty thousand jobs. Wages went up for American workers.
Since I took office, our recovery [economy] has created an average of 600,000 dollar — six- — "dollars." (Laughs.) I wish they — they probably wish there was 600,000 jobs that paid $600,000 a year. But 600,000 jobs per month. We have now created over 3 million jobs since I took office — more jobs than have ever been created in the first five months of any presidency in modern history, thanks to the incredible work of the entire team.
This is historic progress pulling our economy out of the worst crisis in 100 years, driven in part by our dramatic progress in vaccinating our nation and beating back the pandemic, as well as other elements of the American Rescue Plan.
Today, the U.S. is the only major advanced economy where the OECD projections of future output are higher today than they were in January 2020, before the pandemic hit. And America was ranked first in Bloomberg's "COVID Resilience Ranking." None of this happened by accident. Again, it's a direct result of the American Rescue Plan. And at the time, people questioned whether or not we should do that, even though we didn't have bipartisan support. Well, it worked.
In February, the Congressional Budget Office projected 2021 economic growth would be 3.7 percent. Yesterday, they doubled that number to 7.4 percent, in large part thanks to the American Rescue Plan and our work to defeat the virus.
The last time the economy grew at this rate was in 1984, and Ronald Reagan was telling us it's "morning in America." Well, it's getting close to afternoon here. The sun is coming out. At the time, the CBO revised their long-run deficit projections down as a share of GDP they — just as they have done.
So, the American Rescue Plan is strengthening our financial position, and it grows our economy. It's continuing to grow our economy. And the strength of our recovery is helping us flip the script.
Instead of workers competing with each other for jobs that are scarce, employers are competing with each other to attract workers. That kind of competition in the market doesn't just give workers more ability to earn higher wages; it also gives them the power to demand to be treated with dignity and respect in the workplace.
More jobs, better wages — that's a good combination. Put simply: Our economy is on the move, and we have COVID-19 on the run.
Yes, we have more work to do to get America vaccinated and everyone back to work. We are aiming for full employment, and that means keeping our pace on job growth, including for Black, Hispanic, and Asian workers.
But this progress is testament to our commitment to grow this economy from the bottom up and the middle out. The American Rescue Plan provided resources to get shots in people's arms and checks in people's pockets. Schools — schools were struggling to reopen so we made vaccinating teachers a priority, getting schools much-needed support.
In March, we've added — just in the month of [since] March, we added 364,000 education jobs and roles. Small businesses and restaurants were getting crushed. Now we're delivering the loans and support they need to reopen and to stay open.
This morning, we've learned that jobs in some hard-hit sectors — such as restaurants, hotels, amusement parks — were up by 343,000 last month; over 1.5 million over the past five months. And more help is on the way to give families just a little bit more breathing room.
Starting this month, families are going to receiving one of the largest-ever, single-year tax cuts that middle-class families have ever received, and it's called the Child Care Tax Credit.
And here's how it works: In the past, if you paid taxes and had a good income, you could deduct $2,000 per child, and that would come off the total amount of taxes you owe. If you had two children, you owed $10,000; you take off $4,000.
In the American Rescue Plan, we expanded that. Now a parent would get $3,600 for each child under the age of six, and $3,000 for dependents they had between the ages of 6 and 17. So instead of just being a credit against your taxes you owe, it's now a fully refundable credit, half of which will get paid out in monthly basis.
Look, what that means is: This year, middle-class families with two young children can expect to get — receive $7,200 in a rebate, in effect — a tax return — with the monthly payments of $600 a month starting this month, until it's paid out.
Eight out of every ten families who use direct deposit will get their refunds. They'll be able to get a monthly payment on the 15th of every month from now until the end of the year, so they get that paid out. Help with families most need it — most need help to make ends meet. It's important.
And I've said it for a long time: It's time to give ordinary folks, ordinary Americans, middle-class and working-class Americans a tax break. This is the type of tax cut that can help our economy because it will go to families who are going to spend it.
It will also help lead a historic reduction in child poverty — excuse me — (the President takes a drink of water) — historic reduction in child poverty, which would have long-term benefits for our economy.
And we're delivering $39 billion to help childcare providers serve more families, to help parents, particularly women, get back to work.
Last month, our economy added nearly 25,000 childcare jobs. Again, none of this happened by accident. We're providing — proving to the naysayers and the doubters that they were wrong.
None of this is guaranteed to continue, though, unless we finish our work. Now is the time to accelerate the progress we've been making. Now is the time to build in a long-term foundation that we've laid, and build it in for a long term. Economists of all stripes agree that my plan will create good jobs and drastically strengthen our economy in the long run.
So we have to continue to make the investments that will allow our economy to build back better and deal everyone in. We took a significant step in that direction last week when the bipartisan group of senators forged an agreement with me to move forward on key portions of my American Jobs Plan.
It was — I just in Wisconsin, where I highlighted how this agreement is going to pave the way for a generational investment to modernize our infrastructure; create millions of jobs, according to the experts; and what that will mean an ever- — and it won't just be in the center cities. It will be every corner of the state and our nation.
We're going to create jobs repairing roads and bridges, replacing 100 percent of our nation's lead water pipes, making our power grid more reliable, delivering high-speed Internet to every American home, rural and urban.
We're going to put people to work building a nationwide electric vehicle charging network, transitioning from diesel school buses and transit buses to electric buses, and bringing in world-class rail service to more Americans by reducing — and, in the process, reduce our carbon footprint.
For example, when I was up in Wisconsin, I said — I pointed out — the governor was there. I said, "Gov, I know it takes..." — or I don't know how many people — a couple hundred people, I guess, in the audience. I said, "It takes, they tell me, four and half hours to drive from here to Chicago. With the money we have in — for mass transit here, we — you're going to be able to do that in two and half hours." And all the data shows that when it's easier to get someplace by rail than by automobile, it's cheaper and it generates a whole lot less carbon footprint.
We're going to create good-paying union jobs capping hundreds of thousands of abandoned oil and gas wells to stop methane leaks, which are devastating, and to protect the health of our communities. These are good jobs.
Taken together, these investments are going to position America to compete with the world and win the 21st century.
You know, as we bring home key parts of my American Jobs Plan, I'm going to make the case for equally critical investments that we still need, including those in which I introduced at the same time: my American Families Plan.
When I was running for President, I put together a bold, aggressive plan to deliver childcare, paid leave, universal pre-K for three- and four-year-olds, free community college. Maybe the most important among them was extending the expanded Child Care Tax Credit I just mentioned for another five years, which will significantly benefit middle-class and working-class families.
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