Biden on Decreasing Job Growth and Economic Transitions

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Gage Skidmore https://commons.wikimedia.org/

With inflation at highs not seen in four decades, gas prices at never witnessed dollar amounts and skyrocketing food prices President Joe Biden offered more economic news on Monday – job creation could drop significantly over the coming months.

In an op-ed article in the Wall Street Journal Biden placed blame for the “global economy” mess on Vladimir Putin, upset energy markets and supply chain issues causing shortages and price hikes. The problems Americans “feel around the kitchen table” He cited the economy as  a position of strength and there are 8.3 million new jobs, so says Biden.

However, economists say the new jobs weren’t created. They were a mass “bounce-back” from historic layoffs during the height of the pandemic. PolitiFact gave the President a “half-truth” when fact-checking the job creation fact.

Biden wrote that we have a chance to “build on a historic recovery with an economy that works for working families.” The most important thing was to “transition from rapid recovery to stable, steady growth,” and that would bring inflation down, according to Biden.

“During this transition, growth will look different. We will likely see fewer record job-creation numbers, but this won’t be cause for concern. Rather, if average monthly job creation shifts in the next year from current levels of 500,000 to something closer to 150,000, it will be a sign that we are successfully moving into the next phase of recovery — as this kind of job growth is consistent with a low unemployment rate and a healthy economy,” Biden wrote.

He listed three points to bring things in line. First, he won’t bother the Federal Reserve. They have the responsibility of wrangling inflation. Second, make things affordable for American families – there not because Putin invaded Ukraine, according to the president. Third, the federal deficit needs to be reduced. However, the Congressional Budget Office suggests budget deficits in the trillions over the next few years.

The president also claimed he had done everything he could to “help working families during this challenging time.” He continued by calling for Congress to act – for them to pass clean energy tax credits and investments – move on his proposals to lower housing costs, prescription drug costs, child and elder care – that would make things better.