David Stockman's Insight on the Biden-Harris Economy Claims
David Stockman, a renowned economist, believes that the only solution to America's struggling economy is a complete abandonment of Washington's reckless fiscal policies that have been in place for the last quarter-century. He argues that these policies have not achieved their intended outcomes such as increased growth, job creation, and enhanced purchasing power for workers. Instead, they have burdened the economy with overwhelming debts, financial bubbles, chronic inflation, and stagnant living standards.
The Reality of Worker Compensation
Stockman points to the metric of real compensation per labor hour as the most fundamental economic indicator. This measure not only removes inflation from wage figures but also accounts for the total compensation of workers, including benefits such as healthcare, retirement, vacation, disability, and sick leave. The data shows that the growth of worker gains has come to a complete halt.
The State of the US Economy
According to Stockman, it's impossible to claim that the US economy is "strong" when the growth of the inflation-adjusted pay of 161 million workers has deflated to the point of non-existence. This stagnation has been ongoing for the past 52 months.
The Impact on High-Paying Jobs
The stagnation is even more pronounced in the highest paying jobs in the durable goods manufacturing sector. Over the last 15 years, there has been no net gain in real compensation per hour in this high-pay sector. A significant factor contributing to this outcome is the surge of inflation since 2020, which was triggered by Washington's fiscal stimuli and the creation of $5 trillion of new central bank credit.
The Consequences of Reckless Fiscal and Monetary Policies
These reckless fiscal and monetary policies have caused much of the high productivity, high-pay industrial sector to be off-shored. This off-shoring was not due to free market capitalism's failure in America, but rather because Washington's policies generated so much internal cost and nominal wage inflation. This forced vendors of goods to the retail markets to source from lower dollar cost venues abroad, particularly China and its associated supply chains.
The Biden-Harris Administration's Claims
In light of these facts, Stockman argues that the Biden-Harris administration's claims about a "strong" economy are misleading. He believes that these claims, like those of the Trump administration before them, are based on data manipulation and cherry-picking to the point of being a Big Lie.
The Reality of Job Creation
Stockman also disputes the Biden-Harris administration's claims about job creation. He points out that of the 15.9 million jobs they claim to have "created," about 9.1 million or 58% were actually "born-again jobs" – jobs that were lost during the massive layoffs triggered by UniParty lockdowns during 2020-2021 and subsequently recovered.
The Bottom Line
In conclusion, Stockman's analysis paints a bleak picture of the US economy, challenging the claims of the Biden-Harris administration. He argues that the economy is burdened by reckless fiscal policies, inflation, and stagnation, particularly in the high-paying jobs sector. This analysis raises important questions about the state of the US economy and the policies that have led to its current condition. What are your thoughts on this issue? Do you agree with Stockman's analysis? Share this article with your friends and let them know about these insights. Don't forget to sign up for the Daily Briefing, which is available every day at 6pm.
