Finance

The Bidenomics Job Creation Myth

The White House is busy leveraging the media to tout the headline 216,000 jobs that had been added in December. That was an entire lot greater than the 170,000 economists predicted. The administration is keen to inform you it is a sturdy end to 2023’s spectacular job development.

Bidenomics is profitable!

But regardless of the laser-focus on that one job creation quantity, American voters aren’t shopping for it. (The newest Presidential job approval rating of 39% makes the case.)

So let’s dive into this job creation and consider the power of the labor market…

There is a few excellent news (if we dig deep sufficient)

It’s excellent news that 216,000 jobs had been added to the market. Even the three.7% unemployment charge is in keeping with expectations.

More excellent news: Private sector earnings rose 4.1%, on common, lastly outstripping official inflation numbers of three.1%.

Now we have a look at the opposite aspect of the coin…

Mike Shedlock nets it out for us – since June 2023:

Jobs up 216,000 however employment down 683,000

See, there’s a distinction between “jobs” and “employment.”

Jobs are open positions. Until the place is stuffed, a job is hypothetical.

Employment means a person is working a job and getting paid for it. Of the 2 numbers, employment is far more necessary.

From the full-time employment peak in June of 2023, full time employment is down by 1,591,000. In the identical timeframe, jobs are up by 1,157,000.

This form of doubletalk is precisely what I’m referring to once I complain that financial reviews are extra political than financial

The downside is, most of that “job growth” is concentrated in only a handful of industries, according to the Wall Street Journal:

Job development additionally turned extra concentrated in a handful of industries: healthcare and social help (which incorporates private-sector child-care staff, home-care aides and social staff), leisure and hospitality, in addition to state and native authorities. Outside these sectors, hiring slowed sharply and in some areas contracted.

According to the official update, we discovered that building, wholesale, and transportation jobs – you realize, jobs that make a distinction in the true economic system – truly decreased. A staggering 24% of those positions are authorities jobs! That’s 52,000 of the 216,000 jobs to be actual.

Overall, welfare state bloat was answerable for some 60% of new jobs in 2023.

This jogged my memory of the part in J.M. Keynes’s The General Theory of Employment, Interest, and Money the place he advisable that authorities spending on just about any exercise might assist cut back excessive ranges of unemployment. Even if that exercise is as pointless as digging holes after which refilling them. He argues authorities spending would inject cash into the economic system, enhance demand, and thus stimulate financial exercise.

Is this actually a good suggestion? Because, if that’s the case, each American might have a authorities job, and a authorities paycheck. Why even trouble digging the holes?

I’ll depart it to my readers to work out the apparent points right here.

There’s one other concern it is best to take much more critically, particularly for those who’re nearing retirement age…

Aging inhabitants, shrinking workforce stress Social Security

The Committee for a Responsible Federal Budget (CRFB) made an attention-grabbing observation again in 2015 that Biden’s “job growth” has to cope with at the moment:

Senator Lindsey Graham (R-SC) said: “In 1950, there were 16 workers for every retiree. How many are there today? There’s three. In 20 years, there’s going to be two, and you’re going to have 80 million baby boomers like me retiring in mass wanting a Social Security check, and their Medicare bills paid.”

You can see that commentary extra clearly mirrored on the graphic here.

Bidenomics can’t repair this. In equity, it’s uncertain that any POTUS elected in 2024 will have the ability to reverse the development.

What’s apparent is that this dynamic will enhance the stress on Social Security. Per the CRFB:

In a latest New York Times opinion piece which keyed off a latest evaluation from Karen Smith and Committee for a Responsible Federal Budget board member Eugene Steuerle, Glenn Kramon and Steuerle clarify that the growing older of the inhabitants and rising value of advantages are placing the Social Security and Medicare belief funds in jeopardy.

With 17 p.c of the inhabitants now over 65 (up from solely 12 p.c three many years in the past) and the Social Security and Medicare applications paying most seniors way over they paid in, the authors argue that For the Good of the Country, Older Americans Should Work More and Take Less.

“For the Good of the Country,” are you keen to “Work More”? Postpone your retirement 5 – 6 years? (Maybe choose up a government-hole-digging job on the aspect?)

Are you keen to “Take Less” of the advantages you paid for and that the federal government has promised you?

Can the NYT’s op-ed web page disgrace you into giving up your Social Security advantages?

I sincerely doubt it. And if that’s the perfect plan they will provide you with to salvage Social Security, then we’re all in lots of bother…

What will you do in the event that they retire retirement?

The nation faces two big challenges:

  1. The backdoor implementation of a complete welfare state (at taxpayer expense!)
  2. A gentle decline in productive employment that’s completely essential to help the calls for on Social Security and Medicare

The first problem could be addressed by a change in management, so get on the market and vote.

The second problem? It’s been unfolding for 70 years now. The solely plan I’ve seen to unravel it’s a marketing scheme based mostly on basic math – proper in keeping with the NYT op-ed I cited above.

The economic system is precarious – much more so if we take away bureaucratic bloat from the roles numbers – and Social Security is much from safe.

Right now you will need to make completely sure your financial savings are correctly diversified to maintain your retirement plan on-track. Physical valuable metals (particularly gold and silver) have traditionally served as safe-haven shops of worth, preserving wealth throughout troubling financial instances. That’s as a result of valuable metals have intrinsic worth (based mostly on each their inherent utility in addition to provide and demand).

In truth, the price of physical gold in 2023 rose about 13% (handily beating inflation).

Take management of your monetary future whereas there’s nonetheless time! You can get the knowledge you want to think about valuable metals in our free kit.

_______________

Phillip Patrick is Birch Gold Group’s main spokesman and educator. He was born in London and earned a politics and worldwide relations diploma on the prestigious University of Redding in Berkshire, England. Growing up in London, he noticed the dangers of presidency overreach and socialist insurance policies first-hand. He spent years as a non-public wealth supervisor at Citigroup on Lombard Street (the Wall Street of London). He joined Birch Gold Group as a Precious Metals Specialist in 2012.


© 2024 Newsmax Finance. All rights reserved.

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