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Tuesday, June 08, 2021

Biden killed the incentive to work

Last week, the government reported that in May, 9.3 million people were jobless.

This week, the government reported there are 9.3 million job openings.

Problem solved, right?

Wrong.

For every job filled, two more unfilled jobs were added.

Last week's unemployment report said, "In May, the unemployment rate declined by 0.3 percentage point to 5.8%, and the number of unemployed persons fell by 496,000 to 9.3 million. These measures are down considerably from their recent highs in April 2020 but remain well above their levels prior to the coronavirus pandemic (3.5% and 5.7 million, respectively, in February 2020)."

That meant 469,000 jobs were filled.

Today, CNBC reported, "Job openings in April soared to a new record high, with 9.3 million vacancies coming as the economy rapidly recovered from its pandemic depths."

That was up from 8.1 million unfilled jobs in March, an increase of more than a million jobs unfilled.

That means when May began, there were 9.3 million jobs open, but less than a half-million of them were filled by month's end.

We could easily be at 3.5% unemployment again, if enough people went back to work. Heck, if every job were filled, unemployment would be at zero. 

But people are not taking those jobs because the government's safety net makes a pretty good hammock. Most states still offer that $300-a-week federal unemployment bonus. People realize they can do just as well sitting on the couch as they can going to work and paying taxes.

That unemployment bonus was supposed to last only as long as the pandemic did, but Democrat and RINO governors continue the bonus even after the crisis is over.

And Josef Biden allows this.

By every other measure, the economy recovered from the pandemic. The gross domestic product expands. The stock market is at record highs. Wages are rising.

But unemployment remains high because a record 9.3 million job openings are unfilled.

I get that even in the best of times, there are job vacancies. Employers needed welders and other skilled workers, but the United States keeps producing women's study majors, who would rather read about Rosie the Riveter than become her..

The mismatch of job skills was a major reason why we had 5.7 million job vacancies (and 3.5% unemployment) under President Donald John Trump.

Under Josef Biden, we have 9.3 million job vacancies and 5.8% unemployment.

Blaming low wages is an excuse, not an explanation. Under President Trump, wages were slightly lower but unemployment was way lower.

Josef Biden has artificially inflated labor costs by competing with the private sector by offering people more money to stay home.

It is crazy. It cannot last. And should the economy collapse under the weight of all this waste, the people hurt most will be those in the hammocks.

18 comments:

  1. When I was young there was a stigma of being on the Gov teet. We need to get back to those times.

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    1. Valid point, but when the govt created the crisis and destroyed your business in the process, I think the rules are just a bit different. We have seen a number of red states eliminating the covid 19 unemployment rules, and that should move the numbers down, or rather continue to show the difference between blue state and red state governance.

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    2. Only among people unlike you, Jeffery.

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    3. There were lots of stigmas TO. The government teat. Having children out of wedlock. Getting arrested.

      Robert Bork’s book was titled “Slouching Towards Gomorrah”. I think we are there.

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  2. One other consideration is, how many are working off the books while collecting the weekly $300? Off the books labor means workers are paid gross without taxes withheld. The differential between gross and net official payroll can be striking. It is a big reason certain employers are attracted to illegal aliens who they pay under the table. As illegal and distasteful as this may be, it needs to be figured in order to more accurately tally the labor market.

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    1. My question is, how many are supplementing their reported income with retailing dope? Weed, meth, coke, heroin, not to mention the endless array of designer drugs from angel dust to fentanyl. There is a huge amount of dope percolating through our society, and the money it generates is all untraced and untaxed.

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    2. I AM AN IDIOT LIBERTARIAN — My question is, how many are supplementing their reported income with retailing their bodies for the sexual pleasure of others? Bondage, whipping, torture, not to mention the endless array of designer sex toys that can and are inserted in every orifice. There is a huge amount of sex for sale percolating through our society, and the money it generates is all untraced and untaxed.

      The sheer idiocy and lack of morals which guide Libertarians - who in my experience have a screw loose as they debate who is more “principled” while their principles, such as “Open Borders” lead to terrible results in practice - is stunning.

      At least Democrats have an ulterior motive - power - complete and absolute power.

      Libertarians for the most part walk around with their heads firmly implanted in their large intestine. Pathetic.

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  3. "Under President Trump, wages were slightly lower but unemployment was way lower."

    Unless Don has other info, I don't think that's true. BLS Table B-3 shows average private-sector hourly earnings going up 10.5% from $26.02 to $28.74 from Jan. 2017 to Feb. 2020, and average weekly earnings going up 16.0% from $895 to $1038 during that same period. Those increases are both ahead of inflation of 6.5% during that period.

    So even though a lot of the jobs added during those 3 years were at the lower end of the wage scale (which would bring down the averages), overall earnings of others not only weren't hurt, but increased significantly (more than offsetting the former effect).

    We certainly don't appreciate how good we had it.

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  4. IIRC, I believe 30 states (if the number is off, I will happily stand corrected) have cut the bonus.

    The piece I saw was a couple of weeks ago, but a lot of states are under pressure to do something

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  5. I saw my man Rick Santelli say the other day, “Americans have become consumers of employment.” It’s true. And it shows that yer average DubVee redneck is a helluva lot smarter than yer Cesspool Bureaucrat when it comes to making economic decisions.

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  6. My suspicion is that these benefits will be used long enough for the Dems (and their controllers) to move to universal basic income. Then, when most small businesses have been put out of action through rising labour costs and shortage of labour, the next plan will be to make UBI dependent on compulsory work, then to reduce it to a slave wage.
    Once there, you have Chinese style communism in the US.

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  7. Whole lotta people need Biden to survive the four years; if he keels over earlier, there goes their pardons.

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  8. Just got back from town.
    Hiring signs every where.
    From McD's to a local trucking co.
    It's unbelievable.
    Xiden's screwed up.
    There's hope.

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  9. Speaking of layabouts, Hunter Biden: "Trump is a vile man with a vile mission."

    Really?

    From a guy who schtupped all the females in his family, cut in line for a naval commission and top posting, then snorted his way out with no court martial, screws little Chinese girls and is the bribe bagman for the Biden Crime Family.

    Now this:

    The U.S. Sun: WORK AFFAIR Hunter Biden's 'ex-stripper baby mama WORKED for him at his firm but didn't have company health insurance after birth'

    He threw his baby-mama off his insurance.

    AND HIS OWN DAUGHTER.

    What a f*cking Piece of Sh*t.

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  10. At this point, it is a safe bet that there will be no extension of the $300 weekly handouts after Labor Day, although with the screwballs in Washington, anything can happen.

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  11. The bonuses and extended unemployment go away after September 4, 2021. I predict much lower unemployment rates in the following months.

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    1. Exactly.

      If you were a slave why would you continue slaving if you did not have to?

      The rich miss their wage slaves the tears are quite audible.

      Meanwhile not a peep about bankers.

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  12. Here in Texas we learn at an early age that the cattle always follow the feed truck...

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