(ThyBlackMan.com) There is actually a path, to a soft landing. A soft landing equates to minimal interruptions, in your working careers, as the economy slows, due to interest rate hikes. The real rate of unemployment, as understood by economists, actually has within it, the solution to support growth, long-term job creation, and that soft landing we just spoke of. Because Biden lies, about our Job Rates, saying his 3.7% rate for November is comprehensive of our Job Situation, that does not make the real economy’s rate of 6.7% unemployment, with a black rate 5% higher, over the real rate, at 11.7%, magically disappear.
With diversity as our strength, the economy should work for everyone. The TRUTH matters. The Democratic Party has a policy, agreed to by former President Barack Obama, and the Black Caucus, chaired by Rep. Joyce Beatty (Ohio). This is an undisputed fact. They support the vile policy of undercounting the Job Rates of working-class Americans, including Black Americans, hiding coming and current layoffs, hurting American working-class families, everywhere. They do this with impunity.
The lie about our Job Rates, started back in 1994, with former President Clinton’s administration. The monthly official Job Rate published by the Biden-Harris administration, gives the appearance, President Biden’s 3.7% unemployment rate, taken from the U-3 category of the chart of Alternative Measurements of Unemployment is the most comprehensive measurement, of our nation’s unemployment situation. It is not.
The U-3 category rate of unemployment was never meant to be viewed, as being comprehensive of our nation’s unemployment situation, because it is narrow in scope, as it measures a small worker group, hence, it will always flash a low Job Rate number. Economists, at the time the changes to the unemployment rates were done in 1994, agreed the most comprehensive of the category of unemployment rates is, the U-6 rate, which was 6.7%, for November.
Yet, somehow U-3, the lower of the two category rates, became our official unemployment rate, with no one in the Clinton administration including, Secretary of Labor, at the time, Robert Reich, or anyone, in the Bureau of Labor Statistics taking credit, for making U-3, the official rate. How about this, what if Biden, re-aligned his administration from Clinton’s, and align it with economists, and declare U-6, at 6.7%, for November, as the most comprehensive job rate? No added authority is needed, by Biden to carry this out.
Before continuing, and just to be clear, some of you may not see, or understand how a few percentage points, can make a gigantic difference. If you undercount our unemployment rates, which leads to hiding layoffs, with a Job Rate lower (Biden’s 3.7% for November) than the real Job Rate, (6.7%), Biden willfully, counts only about 55% of all laid-off workers. He also, counts about 55% of laid-off black workers, who have a higher rate at 11.7%, leaving 45% uncounted. Thus, Biden’s use of the 3.7%, or the U-3 jobless rate, is misleading. It gives the impression we have a better economy than, what is, factually true.
But because we know, I mean the nation knows, how to create jobs, knowing higher interest rates will drive unemployment, and layoffs, higher, any anxiety over job losses can be assuaged. Remember, we have done this before, that is create jobs, and saw high job creation monthly, during our recovery, from the pandemic. So, the soft landing spoken of above, once the Federal Reserve completes its interest rate hikes to quell inflation, is well within our, and the Biden administration’s reach.
If we take the politics out of the pandemic recovery completely, and just look at how the money was spent, by the federal government, we get an idea of how to duplicate the process of job creation, and not just duplicate it, mind you, but chart a historical course, to make it more efficient, and long-term. We know over 10 million jobs were created, in a consistent manner, over the last two years, and we know the federal government spent trillions, doing it. These are facts. So, how was the money spent, and the jobs created?
The Covid 19 pandemic showed us, we have a relatively simple economy, when it comes to growing jobs, unlike some other nations. The consumer powers about 70% of job creation, in our economy. Simply put, that means, consumers spending money, is responsible for 7 out of every 10 jobs created in our economy.
Consumer spending, as a result of the Cares Act (stimulus) tax cuts, was a major contributor in the rate of unemployment dropping from 14.7%, in May 2020 to 6.7%, in November 2020. When the nation was on its knees economically, due to the Covid 19 pandemic, policy makers did not turn to, what Republicans have always sold us, as a fix for our economy, and that’s corporate tax cuts, and tax cuts for the wealthy. They turned to consumer spending, to grow jobs and the economy, which led to tax cuts to consumers. These tax cuts were disguised, and intentionally mislabeled by politicians, to look like something other than tax cuts; they called them stimulus checks and tax credits, misleading many of you.
There were such programs, as the $484 billion Payroll Protection Program, and the $367 billion outlays, of various loans, and grant programs to businesses, and to major corporations, all to keep consumers employed, and spending, to sustain job creation. However, one of the major tax cut programs disguised, as a tax credit program, stood out, and helps us understand, it’s consumer spending, that is at the heart, of our nation’s growth and job creation.
While there was growth, and job creation, due to spending during the pandemic, the tax cut to Families with Children, stood out as being very effective. It caused a gust of growth, and job creation. Using Democrats’ figures, roughly $15 billion monthly in TAX CUTS started going out with 170 days left in 2021, as the tax cut to Families with Children programs got underway in July and ended on December 31st. It resulted in $529 million a day being given to, and spent by consumers, every day, on average. What the federal government did was, front loaded money to Families with Children, based on the number of children, Internal Revenue Service records showed they had, and sent them a check.
1.091 million JOBS were created, in July, 483,000, in August, (in spite of the onset of the Delta variant), and 379,000 JOBS, in September during the peak of the variant, as many experts attested to the peaking, at that time. But Republicans, objected to a direct tax cut going to that group of consumers, “Families with Children,” even though the principle of giving consumers a tax cut, resulted in growing our economy and creating jobs for working-class Americans, everywhere.
However, it wasn’t clear whether Senator Joe Manchin and Republicans were objecting to “Families with Children,” as the recipients of the tax cut, or were they objecting to the principle, of consumer spending, as a means to create jobs, and grow our economy. Even a 5th grader can understand this, if you give a tax cut to the 70% (the consumer), who is powering your economy, you are going to get a burst of growth, and job creation through “NEW” spending, by the 70% (the consumer), who is powering, and growing your economy.
If it were just the “Families with Children,” they objected to, as tax cut recipients, there is a more acceptable group of recipients, for the GOP and Democrats. This group’s consumer spending will ensure those same families with children have jobs, and a means to survive, and grow successfully out of this coming Economic Downturn. Baby Boomers, as a homogeneous group, who are retiring at a rate of 10,000 a day, will statistically be the best target of the consumer tax cut. Here is why.
The age group, beginning at 55 plus years, are responsible for 40% of consumer spending done in our capitalist economy. Baby Boomers are the largest population within that group of consumers. Baby Boomers, who will receive the $25,000 Consumer Tax Cut at the time of retirement, once they start receiving Social Security retirement payments, will spend the money, creating growth, and jobs. A great benefit of consumer spending, as an effect, of a 10%, $25,000 Consumer Tax Cut, will result in continuing, and I do mean, “continuing deficit reduction,” as consumer spending, is already doing that, right now.
A note: Readers, my account, @Jamesabides1, was permanently suspended on Twitter December 1, 2022, at about 1:00 pm, for advancing the same kind, of factual information, in this article. Sure, @POTUS and @VP are feeling the heat, because of deceit. The question is, did they, or even @TheBlackCaucus have anything to do with that suspension? Go to @Jamesabides1, see if you can understand, why the TRUTH, has been suspended, in the market square of ideas and concepts. Suppressing free responsible speech is unacceptable in our Democracy, no matter who does it. The TRUTH matters.
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.