(RightWing.org) – The president has been flooding Twitter with messages praising the success of “Bidenomics.” The mainstream media is pushing Biden’s economic competence. But, behind the scenes, experts are worried that things aren’t as good as they look on the surface.
On July 7, the Bureau of Labor Statistics (BLS) released its latest report on the US job market. The figures show that in June, 209,000 new jobs were created — less than economists had expected. Experts had predicted 225,000 jobs would be added, bringing unemployment down from 3.7% to 3.6%. Instead, the fall in unemployment from its peak during the COVID pandemic has stalled.
So the June job numbers are disappointing, but that isn’t what has economists worried. Looking a little deeper, 60,000 of June’s new hires were government jobs. So far, in 2023, there’s been an average of 63,000 government jobs created every month. That’s a massive jump over last year, when the average was just 23,000 per month. Economist Peter Earle says this is a sign a recession is likely. He told reporters that when “the productive portion of society who have to serve customers and make a profit stop hiring” while the government agencies their taxes subsidize keep taking on new people, that’s a warning that economic growth is fading. Eugenio Aleman, the chief economist for broker Raymond James, also warned about the weakness in private-sector hires. He said June’s hiring figures don’t match the country’s economic performance.
It’s obviously good news that more Americans have jobs, but government hiring doesn’t actually grow our economy. It costs money, which the government has to raise by either taxation or borrowing. It’s private sector jobs that generate the nation’s wealth, and if business hirings are slowing down, that’s a major red flag. Biden needs to focus on that and not trumpeting his brilliance on Twitter.
Copyright 2023, RightWing.org