If the release of the May jobs report pointed to anything, it was the unprecedented complexity of reopening an economy in the face of massive government spending. While touted by Biden as a bellwether for his infrastructure and education spending, the jobs report showed hiring continued to slow, and the specter of inflation continued to grow.
Economist Steven Moore has long been a critic of Biden’s relief spending and it’s impact on the recovery. He told The Cats Roundtable this Sunday the May jobs report exhibited the “persistent problem” at the heart of Biden’s recovery plan: that workers prefer to remain on expanded unemployment benefits instead of returning to the work force.
“You still have this persistent problem—in fact, we have more jobs, and yet we have more people on unemployment benefits than we’ve had in the last 3 or 4 months,” Moore explained, adding he believed “people are staying on unemployment benefits until September,” when pandemic unemployment benefits are set to expire.
But Republican governors aren’t waiting until September to get workers back to work, with states from Arizona to Florida cutting back pandemic benefits they believe ultimately hurt the recovery.
“It’s hard to compete with your rich Uncle Sam,” Moore said, “when you’re trying to get your workers back on the job.”
For Biden, the May jobs report presents a problem, even as he promises to return the country to pre-pandemic employment by 2022. If Biden doesn’t pump the breaks, Moore told The Cats Roundtable, inflation fears will become a full blown reality.
Those fears can already be felt in the American energy sector, with the Biden administration stopping planned drilling in Alaska and attempting to regulate the number of drills and wells in the Permean Basin.
“Joe Biden has declared war on American energy,” Moore said, adding “the more he shuts down the supply, the higher the price goes.”
But even as Biden touts the jobs report as an example of how his plan is working for the American worker, Moore noted Biden’s ultimate goal seemed to be of “exporting American jobs” in an attempt to dismantle the fossil fuel industry.
Biden’s economic strategy couldn’t be further opposite to the energy-independent, America First policies achieved under the Trump era.
But Moore, ever the cautious optimist, was confident about the American economy if Democrats could be stopped from overspending. He said the biggest gains so far in the Biden economy were “rising prices and rising debt,” but if Biden’s tax plans could be stopped, he was confident the economy would continue to boom.
“I do think the economy is recovering,” Moore told the Cats Roundtable. “So, Joe Biden: stop taxing, stop spending, stop borrowing, and this economy will be just fine,”