(ThyBlackMan.com) The jobs number coming out of the Labor Department, the Bureau of Labor Statistics (BLS) was a surprising number, indeed; 467,000 jobs created in January. Think about this; $529 million a day of Consumer Demand (Spending) was removed from the economy, the $529 million a Day Consumer Tax Cut to Families with Children ended on December 31st and was not replaced with an alternative. And when you add the impact of the Omicron virus, and how it affected the economy, these two contributing factors were made null and void by that job creation number. It was as if these two factors were nonexistent, having no affect upon the economy.
Additionally, ADP, the payroll services company predicted an actual decline of 300,000 jobs, versus this upswing in the job number, as they saw the Omicron variant contagion being the main reason. So, what drove job creation in January is a real mystery, right now. It was not Biden’s planned infrastructure spending, as that part of the administration’s Build Back Better program has yet to be significantly engaged. We now look to the February job situation report, due March 4, 2022, to see if there is any consistency.
In a recent article, I wrote, “Working-Class Americans, and Black America are the “Biggest Losers,” in Biden’s version of Build Back Better, as economic growth and long-term job creation will invariably suffer or be considerably SLOWED.” This has come true, as American workers are now staring at an economic storm on the horizon, as the Federal Reserve (Fed) considers raising interest rates three times, beginning in March to reduce inflation, which will slow the economy.
With a third major economic storm in 14 years, bearing down on us, working-class Americans have to also deal with, a national unemployment situation, that is being politicized, by the Biden-Harris administration, and the Democratic Party. Objectivity, and who is measured, when it comes to being unemployed, in the Bureau of Labor Statistics reports is, the subject of much criticism.
To understand exactly what I mean, go to the following link now, at the BLS web site, and see for yourself the range of “Alternative Measurements of Unemployment” ( http://www.bls.gov/news.release/empsit.t15.htm ). As you see, there are six categories, and depending on which category is used, presidential administrations can manipulate the “official” unemployment rate.
Mr. Biden’s use of the U-3 category, as the official unemployment rate, 4.0% for January, is misleading, when it comes to giving the nation a clear picture, of our economic situation. However, U-3 was not always used, as the official unemployment rate. Be that as it may, his continued use of the U-3 category rate perpetuates racism, and now will contribute to confusion about our economy. It is time, for more of us, to become informed about the racist use of our unemployment numbers. So, take the time, please click the link; learn the factual history, of how the unemployment categories were changed, under the Clinton administration ( https://thyblackman.com/2021/05/02/bidens-practice-of-de-facto-racism-hurts-working-class-americans-countalltheunemployed/ ).
In summary, the article at the link will tell you, the professional in-house economists at the BLS, at the time the changes were made, concluded the U-6 category rate, is the most comprehensive of the six-rate category of unemployment rates displayed, in the Chart of Labor Underutilization. Nevertheless, the official unemployment rate of the Clinton administration somehow, after the change, ended up becoming U-3, the lower rate of the two categories, with no regard for the counsel of the Labor Department in-house economists. Disregarding this venerable institution’s in-house economists, has led to the politicization of our unemployment rates. And the U-3 category rate has been used by every president after Clinton, including of course, President Biden, to the detriment of Black American workers, whose rate is 13.1%, which is usually 5%-6% higher, than the real unemployment rate of 7.1% (the U-6 Jobless rate for January).
It is awkward, when you look at the scheme concerning our unemployment rates from a political standpoint. The Fed is contending with the decision of increasing interest rates to control inflation, and the Biden-Harris administration is, irrationally promoting “a bogus” unemployment rate of 4.0%, for January. That is problematic, from a political standpoint because we, American workers, and the Fed, are compelled to deal with the reality, of what is actually happening on the ground, as it raises interest rates; a real national unemployment rate of 7.1%, and a black rate of 13.1%, which is the highest of any worker group, and rising inflation numbers.
The Biden-Harris administration is adding to confusion when it comes to our unemployment situation. This will be more obvious, come February, March, April, and the rest of 2022, as LAYOFFS rise, due to increasing interest rates. The coming economic storm is REAL, and it could result in our unemployment rates increasing, perhaps dramatically, wiping out any economic gains of working-class Americans, and Black America especially which is already experiencing a Recession at 13.1% unemployment, if the Biden administration does nothing, about expected LAYOFFS.
To be clear, the real unemployment rate for January is 7.1% and not the Biden-Harris administration official rate of 4.0%. This makes Black America’s rate, 13.1%. That figure relegates Black Americans to a Recession. And the Recession for the black community will intensify as the Federal Reserve continues in 2022, the regiment of raising interest rates. There is just no other conclusion you can draw. Blacks are needlessly headed for some very rough economic times, along with the rest of working-class Americans, but more so. Blacks are the first worker group laid-off, as the economy declines due to increased rates, which raises the borrowing cost of money. Keep in mind, the Biden-Harris administration, not telling the truth about the nation’s unemployment situation, does not minimize the misery of being unemployed less painful, emotionally, or/and economically.
Herein lies the problem of misleading a multi-racial nation, about our unemployment rates. Here is a recent statement from a notable publication, “The Federal Reserve officials are preparing to tightened monetary policy in a bid to keep the U.S. economy from overheating amid high inflation, and near-full employment.” The racism of America is on display in this statement, by that publication. It is clearly referencing, “White America who is nearing full employment under Biden’s official unemployment rate of 4.0%, while Black America is currently languishing in a Recession.” The Federal Reserve is nowhere close to maximum employment, which it is mandated to promote alongside stable prices, as it considers raising interest rates to control price inflation.
Until the Biden-Harris administration undo the lies about our unemployment situation, any reference by Biden to the truth, as said by Biden in his recent January 6th speech, where he said, “The way forward is to recognize the truth and to live by it,” is a shallow statement. To be sure, many of us see, such statements as meaningless, falling on deaf ears.
Staff Writer; James Davis
Mr. Davis is a leading expert and consultant in Financial Analysis and Social Dynamics. He is a graduate of Florida A. and M. University (FAMU), a former stockbroker, and a human rights activist who resides in Sanford, Florida. He was awarded the prestigious Governor Haydon Burns Scholarship to attend FAMU and while at FAMU was awarded the first Martin Luther King Scholarship. He is the author of three books, among them is “The Fix This Time,” Boost Your Retirement Income! Simultaneously Create Jobs and Spur Economic Growth (https://www.amazon.com/dp/B00MI3PD2M).
Mr. Davis can be reached through his blog @ https://thefixthistime.com.