Joe Biden as vice president under Obama, co-chaired the recovery of the U.S. economy with the weakest achievements since World War II. As president, according to the Washington Examiner, he has not shown much, although he has inherited advantages from his predecessor,
Firstly, the Biden administration inherited the Operation Warp Speed campaign with a historically unprecedented rapid vaccine production process. Secondly, the American economy was stabilizing despite the difficulties caused by the COVID-19 pandemic.
However, Biden seems to be doing very poorly. The Trump-era economy recovered half of its jobs lost from the coronavirus-induced recession, which hit its apex in April 2020. Nearly one year later, the Bureau of Labor Statistics reported only a quarter of a million new jobs were created, much lower than the 1 million jobs predicted by experts.
For the first time since last year, the unemployment rate rose, from 6% in March to 6.1% in April. Worse, inflation appears to be on the rise in a way it has not been in decades. However, stagnant labor force participation threatens to suffocate the economy—a characteristic of Biden’s first 100 days.
For instance, an enormous amount of cash has been pumped into the economy that is still carrying a national debt of nearly $30 trillion. Biden passed a $1.9 trillion grab bag of left-wing goodies in the guise of pandemic relief, and now he is pressing for another $4 trillion funded entirely by the Federal Reserve. He is gambling it all on a full-year pledge to hold interest rates near zero.
As a result, there is an avalanche of cash in circulation, zero interest rates disincentivize spending, and school and company closures reduce the labor force.
Furthermore, Biden’s signature policy failure is the federal government’s extended unemployment insurance, discouraging people from returning to work.
Biden, in an attempt to restore balance, said on Monday, May 10, “We’re going to make it clear that anyone collecting unemployment, who was offered a suitable job, must take the job or lose their unemployment benefits.”
Although the lifesaving vaccine program appears safely back to normal, the Democratic-controlled Congress has approved additional spending on unemployment through September, and the damage is already evident. Workers will probably refuse to work because they will make more money while unemployed, and the need for benefits will certainly not decline until the end of the fall.
Instead, large corporations like McDonald’s and Amazon will continue to increase automation, crush small companies in the process, and reduce the need for workers.