The American economy may not be as strong as it seems, according to an analysis of the latest jobs report. While the report shows an impressive addition of 303,000 jobs in March, a closer look reveals some concerning trends. Ryan McMaken points out that most of these jobs are actually part-time positions, with full-time jobs disappearing since December of last year. This decline has even reached recession territory when measured year-over-year. Furthermore, the majority of these new part-time jobs are going to immigrants, including those in the country illegally. Native-born Americans have seen zero job creation since mid-2018, as the influx of foreign-born workers has overshadowed their employment struggles.
Another factor contributing to the distorted job numbers is the significant role of government jobs in the recent additions. Government jobs accounted for almost a quarter of the new positions, well above the standard ten to twelve percent. While government hiring may boost the official jobs number, it drains the actual, value-producing economy, much like government spending and economic growth.
Economist Daniel Lacalle argues that the U.S. economy is already experiencing a private-sector recession, but government spending and hiring are masking the true extent of it. This recession is a result of the Federal Reserve’s interest rate manipulation over the past decade, exacerbated by its actions during the pandemic. The decline in full-time jobs further supports Lacalle’s claim.
Job numbers aren’t the only cause for concern; the stock market has been volatile lately due to statements from Federal Reserve officials regarding future actions. Meanwhile, prices continue to rise at an alarming rate, with our dollars losing about 20 percent of their value over the past four years, without any indication of a reversal. These economic challenges are not being properly addressed by the political class, who continue to downplay the situation and even make decisions that could worsen it.
President Biden’s energy policies and the redistribution of wealth from the working class to college graduates are examples of decisions that could have negative consequences for the economy. These actions, combined with the failure to acknowledge and address the economic pain experienced by many Americans, have led to a decrease in support for the Democratic Party. President Biden is currently trailing in polls in six out of the seven swing states and losing support from working-class and nonwhite voters.
The establishment’s refusal to confront America’s economic problems and their role in creating them is a significant factor in the diminishing support for the political class. The author argues that they deserve to lose support for their failure to acknowledge and address these issues.
In conclusion, the current state of the American economy is not as rosy as it may appear at first glance. While job numbers show growth, a closer examination reveals a decline in full-time jobs and an overreliance on part-time positions, many of which go to immigrants. The role of government jobs in the recent job additions further distorts the true economic picture. Additionally, the stock market’s volatility and rising prices contribute to the economic challenges faced by Americans. The lack of acknowledgement and action from the political class, coupled with decisions that could exacerbate the situation, have led to a decrease in support for the Democratic Party. It is clear that there is a need for a candid assessment of the economy and effective measures to address the underlying issues.
