It isn’t about Jobs. It Hasn’t been about jobs for a while. But, don’t tell the president that because he firmly believes that creating more jobs is the answer and that the jobs that have been created are because of him. He’s not just wrong – he’s completely wrong.
What’s Wrong with Our Economy
Ignore everything coming out of the White House and the Federal Reserve. Ignore most of what comes from Congress. While this advice is good in almost any year, it is most critical now.
Inflation is not transitory. Energy prices are not falling. Food prices are not due to an improving economy. The shortage of consumer goods is not because the economy is doing so great.
Everything Costs More
Inflation is caused by too much money chasing too few goods. By pumping billions into the economy (including those $250 per kid tax credits) the government created demand at a level that producers could not match. SNAP (food stamps) was increased, unemployment benefits were augmented, and labor costs are skyrocketing as businesses fight over workers.
All of that sounds great… kinda. People are getting “free” money, the poor are getting more money for food, those out-of-work get a little sumthin’-sumthin’, and entry-level workers get $15/hr or more.
But, and it’s a big but (Hammer don’t hurt me), someone has to pay for all that and it is NOT the government. The government does not make money. They collect your money (FICA, SS, Medicare, etc) then use it to pay administrative expenses (worst charity in history), and finally use it to fund the programs listed in the last paragraph and more.
This redistributive scheme creates inflation. Non-market forces creating wage inflation then, in turn, create product price inflation. They can’t sell you a $1 burger if it costs 1.50 to make… just common sense.
What’s Wrong with Our Supply Chain?
Last week President Biden told us shelves are stocked. Well, he’s both wrong and right, but the shelves that are stocked are despite the idiotic moves the government has made to fix the issue.
First, Walmart says they have all the inventory they need for the holidays. That’s great! Thanks, Biden? Nope, the retail giant says the only reason they are stocked for the gift-giving season is a plan they put in place more than a year ago.
Second, other than Walmart, everyone has seen what store shelves actually look like. They’ve seen the gifts they’d like to give already out-of-stock and they notice that shipping times are extended this year. All of that says something is amiss in the supply chain.
During his speech, Biden also told us how the number of containers left at the ports of Los Angeles and Palm Beach for more than 8 days has dropped by 40%. That may be true, but the reason why is not so great.
A fine was added to all containers left in the yards for more than 8 days. So how did shippers react? They started slow-steaming from foreign ports to the United States – save on fuel, avoid the fines. But, things get here more slowly.
A new queuing plan was also implemented at the gigantic Southern California ports that pushed ships further out to sea allowing the government to claim that they’ve reduced ships at anchor. This also means that goods take longer to reach the U.S.
So the Biden administration can claim they’ve made things better at the ports, but as shoppers know, it hasn’t actually fixed anything.
Where are the Workers?
We do NOT have a jobs shortage, we have a worker/labor shortage. People have been given so many incentives to stay home by the government that they have no reason to look for work. Food stamp (SNAP) increases, monthly child tax credits, augmented unemployment benefits, and more make it easier for some Americans to stay home, watch Judge Judy and eat Fritos all day.
Also, between the deluge of mandates and COVID fear, the government has pushed many more into self-employment where they can write their own workplace rules without federal interference.
Where’s the Energy?
Biden’s energy plan reversed America’s energy independence on day one. Cutting federal leases, increasing regulation, and fines all made energy companies hesitant to continue production.
He made sure that the XL Pipeline got nixed, his administration’s overregulation killed a pipeline and gas terminal in Oregon, and Michigan is looking to close a major pipeline as the depths of winter approach.
Now, the Brandon administration is considering a new ban on the export of petroleum – that’ll help…
Biden’s lack of foresight has moved America from energy producer to begging foreign nations and groups to do it for us. We’ve gone from maker to taker in under a year. Let’s go Brandon.
He Even Screwed Up Innovation
In his very unpopular Build Back Better bill, Biden has huge tax givebacks for the purchase of new electric vehicles. But, only if the vehicle was made in a union factory.
Teslas don’t get a credit despite being a leader in electric vehicle technology, only because they don’t support unions
Time for a Change
We don’t have to wait for 2024 to turn this horse around. The midterm elections are in less than a year and bad polling is freezing moderate Democrats in place. Turn up the heat so that the progressives increasingly get sidelined and the Biden agenda stalls out before it’s had time to completely screw our family budgets into the ground.
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