How much more can the American people take?
The radical shift in policy — both domestic and foreign — has caused many Americans to suffer, especially their pocketbooks.
Joe Biden has put in place a series of destructive fiscal policies that have resulted in a total decimation of the way business is done in United States. Small and medium-sized businesses are struggling to staff up their establishments, and prices for common goods and services are through the roof.
Not to mention the lack of jobs hitting the market as the country thaws from a global pandemic (even though the Democrats are pushing for another one.)
But the bottom line is this: the United States added half as many jobs as expected during the month of July.
According to a report from ADP Research Institute and Moody’s Analytics, private sector employment growth saw a substantial dip from its June levels.
Employers added 330,000 positions for the month, a sharp deceleration from the downwardly revised 680,000 in June. It’s also well below the 653,000 Dow Jones estimate. June’s final total fell from the initial estimate of 692,000.
The report explains that leisure and hospitality — which added 139,000 positions — drove much of July’s growth. Franchise employment also rose by 105,400.
The report comes as the United States labor market continues to experience distortions following COVID-19 and the lockdown-induced recession.
Biden’s American Rescue Plan extended $300-per-month federal unemployment insurance payments through September. A recent poll found that 13% of respondents said that they had turned down job offers while unemployed because they “receive enough money from unemployment insurance without having to work.”
Twenty-six states — all but one of which are led by Republicans — have therefore opted out of the program, citing concerns from local small business owners about their difficulties in hiring new workers despite a record number of job openings.
The Federal Reserve’s most recent semiannual report to Congress pointed to the federal unemployment handouts as a leading cause of labor market distortions:
Citizens in states that have prematurely opted to exit the enhanced payment program — such as Florida, Texas, Indiana, and Maryland — are now filing suit against their governors in the interest of continuing to receive handouts.
Author: Asa McCue