Biden Economy Continues To Show Weakness As People Still Refuse To Return To Labor Market
Albert Turkington
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While many have been hopeful of an American economy returning to normal as soon as humanly possible, the past ten months of the Biden regime has been cited by many as the main fundamental reason for this hope being dashed. While the latest jobs data gave markets hope by posting a very respectable headline figure, that figure apparently hides some concerning details with regards to the true health of the American economy and society.
According to the Bureau of Labor Statistics itself, the American economy showed signs of strength last month when it hired an extra half a million people or so. However, the labor force participation rate, which tracks the percentage of the working-age population that is actively looking for work or is currently working, was a paltry 61.6 percent for the month of October.
According to The Epoch Times, the labor force participation rate has tracked a fairly narrow band between 61.4 and 61.7 percent since June of last year, after tumbling from 63.3 percent in February of 2020, the last full month before lockdown measures were introduced.
The situation is far worse for men, the traditional breadwinners of the family. Currently, at 67.6 percent, the male labor force participation rate was already hovering at record lows (69.2 percent in February 2020) in the years prior to the pandemic, having fallen from a postwar norm of over 85 percent.
In addition to what Charles Murray identified in his book “Coming Apart”, the current failure of the economy to bring labor force participation back up to at least what it was pre-pandemic has yet to be definitively ascertained, but there appear to be several possible explanations.
One possible explanation that some have posited is the stress of the pandemic causing many on the verge of retirement to bring their exit plans forward several years. Even this explanation entails a variety of motivations, but this is considered by many to be a significant albeit insufficient explanation to the labor force woes the economy is fated to endure in the coming months and years.
One other major potential factor is what many perceive to be the over generosity of government assistance programs in response to the economic fallout of pandemic-related restrictions. A recently released study conducted by the Joint Economic Committee (JEC) Republicans found that the additional transfer payments offered by the federal government in particular that go far beyond what was made available pre-pandemic has “likely made work less attractive for these Americans.” who appear more content than ever to sit on the government gravy train for as long as they are allowed to.
Ironically, a growing number of large employers, namely Starbucks, Costco, Walmart, Target, CVS Health, and Walgreens Boots Alliance among others, have increased their starting pay all the way up to $15 an hour, which is what Senator Bernie Sanders of Vermont promised to implement during both of his Presidential bids.
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