Job growth stalls in last two months, underlining failure of tax cuts as job creation strategy

From the Economic Policy Intstitute's jobwatch.org website

Job growth has stalled in the last two months. Payroll jobs increased by only 78,000 in June and a meager 32,000 in July, after rising 295,000 a month the previous three months. The Bush Administration called the tax cut package, which was passed in May 2003 and took effect in July 2003, its "Jobs and Growth Plan." The president's economics staff, the Council of Economic Advisers (see background documents), projected that the plan would result in the creation of 5.5 million jobs by the end of 2004—306,000 new jobs each month starting in July 2003. The CEA projected that the economy would generate 228,000 jobs a month without a tax cut and 306,000 jobs a month with the tax cut. Thus, it projected that 3,978,000 jobs would be created over the last 13 months. In reality, since the tax cuts took effect, there are 2,565,000 fewer jobs than the administration projected would be created by enactment of its tax cuts. As can be seen in the charts at the jobwatch.com website, job creation failed to meet the administration's projections in 11 of the past 13 months.