“America’s jobs and unemployment reports indicate that Bidenomics is an immediate failure exacerbated by inappropriate laughter” — Paul Ebeling
Addressing the report, Mr. Biden sought to ease concerns insisting an unexpected slowdown in companies’ hiring is proof the US needs lots of T’s to boost what he is trying to sell. But his sales effort is challenged by those of us who say Friday’s jobless figures show his earlier aid legislation rushed through Congress is doing more harm than good.
Mr. Biden’s promised economic comeback sputtered and stalled Friday on the April job gains of 266-K, 26.6% of that expected, and rise to 6.1% unemployment as those extremely negative numbers complicated his new $4.6-T push for infrastructure, education and care for children.
The employment report failed to show that the economy was accelerating.
The numbers present Mr. Biden with a huge challenge at a Key time in his presidency, as he is betting that an open embrace of massive government spending will help resolve the nation’s public health and financial issues and lift the political prospects for Democrats heading into next yr’s elections.
The disappointing jobs numbers will embolden his critics and stiffen the Republican resistance to the infrastructure package he is trying to push through Congress.
Mr. Biden’s critics say the recent aid/relief/stimulus legislation worsened problems in at least 1 way, with expanded unemployment benefits that gave the jobless a reason to stay at home instead of going back to work.
Also, there are issues of supply shortages that are holding back growth, a reminder that the world’s largest economy seldom bends to the wishes of its lawmakers.
The fate of Mr. Biden’s agenda depends on how the public processes and understands the April jobs report in the coming wks.
The Big Qs: Is this is what happens when the government gets involved in the economy and screws things up? Or, will the public see this as the need for more government support?”
The Big A: Our takeaway is that there a need for caution in interpretation.
LTN economist Shayne Heffernan notes that many businesses are saying they cannot find workers to hire despite increases in hourly pay.
We will monitor upcoming reports to see if that pattern holds in what may well be a troubling sign for Mr. Biden’s Socialist vision of how to generate growth through massive government spending.
If we continue to hear businesses complaining about worker shortages and if wages continue to rise, then we will conclude that most of the 8-M jobs we are missing now are not coming back.
We put the blame squarely on the very generous unemployment benefits that Mr. Biden showered as part of his relief package. That free money prevents people from accepting jobs.
“One step policymakers should take now is ending the $300 weekly supplemental unemployment benefit,” said Neil Bradley, chief policy officer at the US Chamber of Commerce “Based on the Chamber’s analysis, the $300 benefit results in approximately one in four recipients taking home more in unemployment than they earned working.”
Friday, the benchmark US stock market indexes finished at: DJIA +229.23 at 34777.76, NAS Comp +119.39 at 13752.27, S&P 500 +30.98 at 4232.60. The Russell 2000 (+1.4%) outperformed.
Volume: Trade on the NYSE came in at 872-M/shares exchanged.
HeffX-LTN’s overall technical analysis of the major US stock market indexes is Very Bullish at the wk ended 7 May 2021.
- Russell 2000 +15.0% YTD
- DJIA +13.6% YTD
- S&P 500 +12.7% YTD
- NAS Comp +6.7% YTD
Looking Ahead: Investors will not receive any notable economic data Monday.
Have a healthy weekend, Keep the Faith!