President Biden’s got big problems. And, I’m not even talking about his poll numbers.
The U.S. Labor Department’s jobs report for the month of November was released Friday and it was, quite simply, disastrous.
We learned that the U.S. economy added only 210,000 jobs last month — less than half the number of jobs estimated by Dow Jones. Indeed, economists had anticipated that the economy would create 573,000 new jobs.
While the unemployment rate did fall to 4.2%, the retail sector lost an additional 20,000 jobs at a time when it ought to be adding more! Typically, retail picks up during the holiday shopping season.
The reality is this: Job creation is slowing. At the same time, inflation is picking up. Meanwhile, the onset of the omicron variant is likely to exasperate the situation given that it could cause additional additional supply chain disruptions, right as the Federal Reserve finally tries to back off its money printing extravaganza by tapering its monthly bond-purchasing program and possibly even raising rates next year.
Wow. That’s a lot to process. But, the bottomline is: if the Fed isn’t there to lend its support –and there are not enough jobs being created to sustain growth, what happens to the economy?
There are several issues contributing to this decline in job creation. First, we’ve seen evidence that many Americans simply are choosing not to work. The “Great Resignation” is still happening in full-force as we’ve watch more than 4 million people voluntarily leave the workforce on a monthly basis since summer. At present, there are more than 11 million jobs open but, no one seems to want them.
Can you blame people? After all, Uncle Sam…or, in this case, Uncle Joe has made it quite attractive to stay home through stimulus checks and Federal benefits. While most Republican-led states have rescinded Federal benefits, benefits are still offered in multiple blue states…which may help explain why blue states are having a more difficult time getting people back to work.
The other reality is this: Americans stabilized their balance sheets during Covid, thanks to multiple rounds of government stimulus checks coupled with an almost forced savings (since nothing was open.) As such, many people have the luxury of scaling back on work. Some, meanwhile, have decided that maybe they don’t need as much and can get by perhaps with only one spouse working. Others may have chosen to start their own small business. And that’s commendable given that the backbone of our economy is entrepreneurship and small business.
Getting people back into the work force could prove challenging in the coming years and, should Biden’s “Build Back Better” agenda come to fruition, it will mean even more handouts that could limit the labor supply even further thereby exasperating the issue.
Any which way you slice it–it’s clear the Democrats will have a significant issue heading into 2022. Inflation is rampant. Job growth is anemic. And Covid is back.
As Bill Clinton once said, “It’s the economy, stupid.”
Policy matters — and the threat of more shutdowns, the wiping out of the Keystone Pipeline (which has led to less job creation while simultaneously helped drive oil prices higher amid an expectation of reduced supply) and the promise of more taxes to help pay for all the Democrat’s social programs — are policy choices that are costing the U.S. economy and hurting Americans’ pocketbooks.
It’s time for Biden to admit his policies are wrong. It’s time he stop pandering to the leftist extremists like Bernie Sanders and AOC and do the right thing for the American economy and American workers.
Otherwise? That devastatingly low approval rating will soon head even lower and he will guarantee that fellow members of the Democrat party will be out of a job in 2022.