June 12, 2022 Biden blames ‘everything but himself’ for the economy
The past week has been brutal for the Biden administration. There was the announcement of a high inflation rate over four decades of 8.6%. There have been two weeks new records set for the average price of a gallon of gasoline. And there is growing pessimism from financial exports as JPMorgan Chase CEO Jamie Dimon warns of a coming “economic hurricane”.
The bright spot that the White House continually points to is the relatively low unemployment rate – given the still worrying labor force participation rate. But the members of Project 21 black leadership network, commenting on the latest federal jobs reportsay reality is nothing for the Biden administration to try to hang up its hat on.
“Those who say the May jobs report is proof that the US economy is strong probably have a bridge in Brooklyn to sell us,” said a Project 21 member. Michael Austin. “Despite a better-than-expected job gain, Americans are still on track to see wages fall for the 14th straight month.”
Going into the details of the report, Michael noted:
The same employment information agency also revealed that labor productivity had fallen to its the slowest rate since 1947. And the largest private payroll company reported the slowest job creation in the recovery. The previous week, another federal agency reported that Americans were dipping into their savings to make ends meet. The jobs report is good, but Americans know when they’re being sold a bill of goods on their economic well-being.
The U.S. Bureau of Labor Statistics Employment Report reported 390,000 jobs created in May for an unchanged unemployment rate of 3.6%. The activity rate was 62.3%. The alternative U-6 measure of all unemployed plus those marginally attached to the labor force and underemployed was nearly double at 7.1%.
“As the U.S. economy continues to slump from historic inflation rates and financial degeneration, one area of potential relief has been monthly new job gains. While many economists have found confidence in a stable growth rate for newly added jobs, followed by a more robust workforce as restrictive COVID-19 shutdowns are lifted, the recently released jobs report in May offers little support for a renewed confidence,” said a Project 21 member. washington of stone. “The May 2022 Jobs Report found that growth in private wage employment has slowed significantly, as private organizations struggle to fill a record number of job vacancies in the labor market the more constraining for decades.”
“The Biden administration is making the jobs report one of its few successes, as it reported that 390,000 jobs were created in May. Yet, according to ADP, only 128,000 private salaried jobs were created last month. This is well below the estimated 299,000 jobs that were expected,” added a Project 21 member. green derryck. Compounding the administration’s economic woes, inflation – at 8.6% – is now at its highest level in 40 years. It bears repeating that inflation works like a tax because consumers pay increased costs for goods and services.
For black America, the jobs report was not a sign of relief or an indicator of success. All black unemployment the rate went from 5.9% to 6.2%. For black women, the rate increased by nearly one point overall – from 5.0% to 5.9%. Among black teenagers, the unemployment rate rose from 15.2% to 18.3%.
Kathryn Zickuhr, Labor Market Policy Analyst, Washington Center for Equitable Growth Told CNBC: “This growth and this recovery won’t reach everyone, and it won’t reach everyone unless we improve our systems and policies to close these gaps and support these workers.”
“Although not as strong as April, the United States continues to create jobs in a post-COVID rebound. But, although jobs are being created, we still face a labor shortage. We are still battling record inflation which is hurting wage gains,” a Project 21 member warned. Philip Clay. “We could see a cooling in June as the Federal Reserve looks to raise interest rates. And Americans are still bracing for another setback from Biden-Harris – a recession.”
Speaking to CNBC about recent Federal Reserve actions, MetLife Investment Management Chief Marketing Strategist Drew Matus said it “might be the last ray of sunshine before the clouds get a little deeper and darker”.
Commenting further on the overall damage to the US economy that appears to be deliberately overlooked by the White House, Stone continued:
It is extremely disappointing to me that private companies only added 128,000 jobs in May, which is less than half of the high gain of 300,000 jobs predicted by some economists. It was the weakest job gains in two years and the slowest month of recovery since the pandemic shutdown of sectors of the U.S. economy in April 2020, according to ADP.
This deterioration in job creation is even more troubling when you consider how it has severely affected small businesses with fewer than 19 workers, as these businesses absorbed the bulk of the labor shortage in May. with 78,000 jobs lost. In contrast, large companies with 500 or more employees helped offset that loss slightly, adding 122,000 new jobs last month.
With the highest rate of inflation in 40 years, it’s no wonder American businesses are struggling to hire new workers and stay afloat to retain existing employees while being forced to pay higher expenses for commodities in the market. That should add a lot of concern for the private sector as Americans continue to suffer from the Biden administration’s reckless spending decisions.
According to a analysis by CNSNews, the biggest gains in the labor force came in the public sector – government jobs.
“AAA reported that the national average for a gallon of gasoline, as of June 12, was $5.01. Due to rising costs, it is valued that American households pay nearly $5,000 a year just for gas. The national average for a gallon of diesel is $5.77 – a record,” Derryck remarked. “This dramatically increases the cost of transporting goods, which is passed on to the consumer.”
Derryck also clarified that the buck stops with the president’s office:
All of this and more exists because President Joe Biden has no idea how to fight inflation. He blamed everyone – like the so-called “Putin price hike”, the meat processing industry, the oil companies and everything but himself – for the continuing economic chaos Americans are experiencing.