Joe Biden and the Dems: Partying like it’s 1979.
June 7, 2021 by Staff
Filed under Money/Business, News, Politics, Weekly Columns
(Akiit.com) The May 2021 jobs report shows that 559,000 net additional jobs were created, which is, once again, fewer than what was anticipated That is now two months in a row that the jobs report was disappointing, the first two months since President Biden’s policies took effect. Both months are losers – and what’s more, the jobs participation rate actually decreased. Decreased. Decreased to 61.6%. That’s horrible, just as it was when Obama was president.
With 7.5 million job openings, why did the net additional employment only increase 559,000? Because people are getting paid more by the federal government to stay home than to go to work. The dozen states that did not implement the Biden extended unemployment benefits in May accounted for more than half of all the net new jobs when the 67,000 net new government jobs are subtracted from the 559,000. So why is Joe Biden ignoring that fact?
And, why did the unemployment rate decrease if the participation rate decreased? Because the unemployment rate is a manufactured number. It is based on how many people are looking for jobs, not how many people are available to work. And the number of people looking for jobs decreased since so many are paid more to stay at home. The real unemployment number would be more than 10% if those people could not afford to stay at home and were looking for jobs.
This is a dog chasing its tail. The unemployment rate would increase if more people were looking for jobs, so Biden is paying them to stay home. The decreasing participation rate proves this point.
Joe Biden and Democrats are getting the polling results they want. Those extended unemployment benefits are buying a higher approval rating. But what happens when the stimulus money runs out?
Fact is, Biden and Democrats screwed up. All of Biden’s 47 years of experience are as a government employee. He has no idea how the real world outside of government actually works – why would he?
So, why are stock prices increasing? Because interest rates fell. Investors don’t see the Fed increasing interest rates or selling more bonds until employment increases substantially (at least 5 million more net additional jobs), so the lower interest rates force up Price-to-Earnings ratios and stock prices.
What will happen to those stock prices when the Fed is forced to increase interest rates and sell off bonds because of inflation? Two percent inflation is the Fed target. Most financial advisers now believe that inflation actually is above 4%. Some think it is more like 10%. The Fed is deliberately fudging the figures for core inflation (does not include energy, gasoline, or food) so that the Fed does not have to face fighting inflation along with fighting a low employment participation rate.
This is much like when Jimmy Carter was president. Low employment, high inflation and eventually high interest rates. Carter’s solution was much the same as Biden’s: more government spending, which just exacerbates the situation. Plus oil shortages haunted Jimmy just as they are about to haunt Joe. This is looking like a perfect storm on the horizon.
The price of oil is now up almost 75% under Biden from what is was under Trump. Oil production under Biden decreased from record oil production and oil independence under Trump (for the first time since Eisenhower). Biden canceled ANWR drilling. He canceled the Keystone pipeline. Fracking was curtailed after Biden promised not to reduce fracking (he lied). And oil is the No. 1 indicator of what will happen to all product prices in the future. Prices for plastic, consumer gasoline, electricity, transportation for food, clothing and shelter – all depend on oil prices.
The only people who are benefiting from these higher oil prices are oil companies, oil oligarchs, the Saudis, Iran and Vladimir Putin as their net assets increase with increased prices. Joe Biden is their puppet.
What happens to all those illegal immigrants Biden is allowing into the U.S., 10 times more than under Trump? Do they get jobs that American workers can/should be doing? Kamala Harris says that she wants cure the root causes of illegal immigration into the United States. She wants to pay foreign governments to stop their people from leaving their home countries. Wow! She is so wrong. If those illegal immigrants could not have a better life in America, if they got expelled immediately without receiving government benefits, then they would not be attracted to come here. The vice president is so wrong … about so much!
So it is time to take stock: $1.9 trillion proposed by Biden for infrastructure when only $900 billion of it is for actual infrastructure; $5 trillion for stimulus that paid people to stay home and not go to work; a 50% increase to the federal budget; proposed tax increases; oil production decreases; a 10-fold increase in illegal immigrants; not to mention ineffective COVID shutdowns by Democratic governors
So let me ask: How many more of these bad economic decisions by Biden and the Democrats can Americans afford? How do any of their decisions make America great again for average working Americans? How do their decisions put the interests of average working Americans first?
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