Encouraging people not to work is not only bad for the economy, but also bad for them
Contrary to what we’re hearing from the Biden administration, the solution to our labor market woes is not massive government spending geared toward creating jobs. According to the most recent figures from the Bureau of Labor Statistics, there are already 10.9 million openings, but only 7.7 million people are actively looking for work. Therefore, businesses are finding it difficult to fill those vacancies, which is why the number of jobs is so dismal.
Simply put, the problem is the shortage of workers and not the lack of job opportunities. Neither government spending intended to create more jobs nor government spending that discourages work will solve that problem.
Conversely, as both August and September’s dismal job numbers show, such spending only exacerbates the problem. While President Biden may not see it, Sen. Joe Manchin, DW.Va., does. Last month he said that “we have 11 million jobs that we haven’t filled, 8 million people are still unemployed. There’s something wrong here.”
In his press conference after Friday’s disappointing September jobs report (194,000 jobs created, 500,000 anticipated), Biden claimed that the unemployment rate falling to 4.8% was a sign of recovery. Unfortunately, it is not so.
US economy increased by 194 thousand jobs in September, not estimated
The unemployment rate is just under 4.8% because the labor force, that is, the number of people working or actively looking for work, is close to a historic low. Once again the problem is the shortage of staff. In September, 183,000 people dropped out of the labor force and the participation rate dropped to 61.6%. If the labor participation rate were 63.3%, the rate under President Trump in February 2020 would be a discouraging 7.3% unemployment in September.
Still, instead of programs that encourage people to return to work, Biden and his Democrat allies want to increase government spending, much of which will expand or create new government rights that keep people from working. will discourage. We are talking about huge – massive – increased spending.
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On top of the $5.3 trillion we spent on a bipartisan basis during the pandemic and the $1.9 trillion Democrats unilaterally authorized in March, Biden and Democrats now have an additional $1.1 trillion “human infrastructure” bill and $3.5 trillion ($5.5 trillion). ) want to pass. Scored properly) Spending extravagantly with the cradle for serious government benefits.
Why? Even assuming Biden’s massive government spending will actually create new jobs, who will take them? There is no point in spending huge amounts for job creation when we already have about 11 million unfilled jobs. There is no point in discouraging work together.
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Wages are not the issue. Annual salaries were up an impressive 4.6 percent in September and have grown an impressive percentage throughout the year. Even at this rate of growth, wages may not keep pace with the inflation Biden’s policies are creating, but employers are willing to pay for workers. The problem is that they can’t find them.
Biden’s attempt to blame COVID for the disappointing job openings ignores the fact that COVID numbers were baked into economists’ projections for both August and September, and the actual job numbers are embarrassingly short of those COVID-hit expectations. substantially reduced. Even factoring in COVID, the numbers were really bad.
What Joe Biden and the Democrats seem to be missing is that encouraging people not to work is not only bad for the economy, but bad for them as well.
At this point, some young Americans may prefer to sit in their parents’ basement and receive government scrutiny 18 months after the pandemic. But is it really in their best interest for the government to continue encouraging them to live by what other people produce?
Wouldn’t it make more sense to encourage these individuals to reach their potential, achieve financial independence, and earn the dignity and self-esteem that come with a job? There was a time when both sides saw it as an honorable objective. President Bill Clinton and House Speaker Newt Gingrich made that notion an integral part of our welfare system.
Biden and the progressive wing of his party would reverse that policy. But government dependence is not the way out of poverty. It just makes it permanent.
Speaker Biden, if you want to lift people out of poverty, if you want better numbers of jobs, if you want people to succeed and become self-reliant, please stop the government spending spree!
It’s time we all get back to work.
Andy Puzder was the chief executive officer. CKE Restaurant Having a career as a lawyer, for more than 16 years. He is currently a Senior Fellow at Pepperdine University School of Public Policy. He was nominated by President Trump to serve as the US Secretary of Labor. In 2011, Puzder co-authored “Job creation: how does it really work and why doesn’t the government understand it?“His latest book is “The Capitalist Comeback: The Trump Boom and Left’s Plot to Stop It(Center Street, April 24, 2018).