Tag: employment growth
The Sudden And Remarkable Resurgence Of 'Sleepy Joe' Biden

The Sudden And Remarkable Resurgence Of 'Sleepy Joe' Biden

Meanwhile, back at the ranch…

To readers of a certain age who grew up watching cowboy movies on TV, that timeless phrase signals a major plot development. Maybe the scheming rancher with the mustache is ordering his henchmen to saddle up. Alternately, a hero in a white hat may be entering the fray.

Either way, somebody’s about to get a surprise.

Sometimes politics works that way too.

One year ago, I posted the following on my Facebook page: “Regarding Biden's speech about the Afghan collapse: I haven't seen such passionate unanimity among the DC commentariat since they went all-in on the absolute necessity of invading Iraq.”

Pretty much from that day, Joe Biden has been depicted in the national political press as the proverbial Dead Man Walking. “Sleepy Joe” as Donald Trump dubbed him, was headed for a mid-term shellacking.

Come November 8, 2022, resurgent Republicans would take over both houses of Congress and spend the remaining two years of Biden’s futile presidency investigating his troubled son, Hunter. Maybe Hillary Clinton too.

In retrospect, the Afghan retreat wasn’t such a catastrophe after all. After Trump surrendered to the Taliban, agreeing to leave Afghanistan without consulting its U.S.-backed government, the die was cast. Biden either needed to re-escalate or get out fast. One thing you won’t hear today is anybody keen to go back in. It’s both unthinkable and un-thought.

Then came sky-high gas prices and commodity inflation, making the president’s political future look dim. No matter which channel you watched, every TV news broadcast featured somebody griping at a gas pump or bitching about expensive eggs. On supposedly liberal CNN, Wolf Blitzer practically snarled “inflation” at every Democrat he interviewed.

And it was all Biden’s fault, particularly the parts he had absolutely no control over, such as the worldwide price of crude oil.

Let’s Go, Brandon.

Back at the ranch, however, Brandon got going. Or something. Due to additional circumstances beyond the U.S. president’s control, such as China’s sputtering economy, oil prices --and with them the cost of gasoline -- began to drop. And largely due to actions by the Federal Reserve, also outside Biden’s jurisdiction, inflation began to level off.

Syndicated columnist Froma Harrop noticed the supposedly liberal New York Times—sometimes I think that should be the newspaper’s official name—giving the president grudging praise: “Slowing inflation gave Biden a reprieve buthigh prices remain a political problem."

Still high, yes, but moving in the right direction.

Job growth, meanwhile, remained strong. Fully 500,000 Americans found new jobs last month. The news media started to notice that the national unemployment rate had reached a 50-year low. With gas prices dropping, how long before Americans noticed that the U.S. economy is actually quite strong? In politics, momentum counts.

And then came the Supreme Court’s decision overturning Roe v. Wade, essentially ruling that citizens in different states have different constitutional rights, and that women have fewer of them than men. Kansas voters turned out in record numbers to show what middle America thought of that—an electoral thunderbolt that imperils far-right Republicans.

“The situation has changed with astonishing speed," wrote New York Magazine’s Jonathan Chait. “In the span of a few weeks, Biden’s presidency is back from the dead and looking something close to triumphant.”

Even before the Democrats’ recent extraordinary legislative achievements —the Inflation Reduction Act, enacting higher taxes on profitable corporations, enabling Medicare to bargain down drug prices, giving the IRS resources to pursue wealthy tax cheats, and boosting green energy while supporting fossil fuel production in the meantime—polls had begun to show a marked shift in the Democrats’ direction.

Yes, a lot of it’s due to Sen. Joe Manchin’s extraordinary change of heart, but it was old Sleepy Joe who urged Democrats to understand where the West Virginian was coming from. Many progressive Democrats wanted to purge him. Fat lot of good that would have done.

Democrats have even gained a lead over Republicans nationwide in the so-called “generic ballot” asking voters which party they’re inclined to support in congressional elections. As the Washington Post’s Dana Millbank points out, it’s “the first time in the modern era" that “momentum has shifted toward an incumbent president’s party at this point in a midterm election year.”

Of course, polls are only polls, and anything can happen between now and November. The Biden administration has also gotten a lot of help from Republicans. Whatever possessed GOP Senators to vote against health care for veterans sickened by military “burn pits?” Or to kill legislation capping the price of insulin for diabetics?

Then there’s Old Unreliable, Donald J. Trump forcing himself into the spotlight again, the spittle-flecked face of Republican rage. So, what’ll it be, America? Steady Old Good-Government Joe or the Sideshow Ape Man, hooting and flinging feces?

America made this choice once, and decisively.

Must we really do it again?

New York Fed Survey Finds Broad Optimism About Jobs And Income Under Biden

New York Fed Survey Finds Broad Optimism About Jobs And Income Under Biden

A survey released on Monday by the Federal Reserve Bank of New York found that American households say they expect increased personal earnings and better employment prospects in President Joe Biden's second year in office.

The Survey of Consumer Expectations is a monthly survey of approximately 1,300 households giving their views on earnings growth, job prospects, inflation, and credit.

In the December 2021 survey, respondents said they expected their earnings growth for the year ahead to be 3.0 percent, which was an increase of 0.2 percent over the previous month's survey. The New York Fed said that the most optimistic expectations came from respondents "with an annual household income below $50,000."

People responding to the survey also expressed the view that unemployment will continue to decrease. Only 35.2 percent said they believe unemployment will be higher in a year, and even that was a 0.9-point drop from the November survey.

The number of respondents who said they perceived the possibility of losing their job in the next 12 months was also down 1.3 percent to 11.6 percent.

The national unemployment rate is currently 3.9 percent, down from the 6.3 percent that Biden inherited from former President Donald Trump in January 2021.

The survey also showed optimism about consumer costs in the coming year, in spite of Republican efforts to attack the Biden administration over the issue of inflation.

Respondents said that while they expected inflation to remain steady, they expect prices for gas and food to fall in the coming year.

In December, Biden said he believed supply chain problems have contributed to increased costs and expressed optimism for lowered prices in the near future.

"We are making progress on pandemic-related challenges to our supply chain which make it more expensive to get goods on shelves, and I expect more progress on that in the weeks ahead," Biden said in a December 10 statement.

Published with permission of The American Independent Foundation.

Report: Minimum Wage Increases Are Not Killing Jobs

Report: Minimum Wage Increases Are Not Killing Jobs

Remember when the right was convinced that raising the minimum wage would lead to disastrous job losses, all because of a Congressional Budget Office report that suggested President Obama’s plan to do so would cost the country jobs? It turns out that states that have upped their minimum wage are actually doing much better than states that haven’t.

A Center for Economic Policy and Research (CEPR) report released last week shows that in the 13 states that increased their minimum wage at the beginning of 2014, job growth was higher than in states that did not. Four states — Connecticut, New Jersey, New York, and Rhode Island — had passed legislation to raise the minimum wage, while nine — Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Vermont and Washington — automatically did so due to inflation. The CEPR used the average of employment levels from the last five months of 2013 and compared them to the data from the first five months of 2014 to determine the rate of employment growth.

All but one of those states (New Jersey) saw an increase in employment. The average change for these 13 states was +0.99 percent, while the states that did not raise their minimum wages only had an average change of +0.68 percent. Four (Washington, Colorado, Oregon, and Florida) were in the top 10 states that had seen job growth, and nine saw growth above the median rate. New Jersey, however, is in the worst shape in the country, with an 0.56 percent decrease.

The report is an update on April figures from Goldman Sachs economists, which had also shown the benefits of raising the minimum wage. The author, Ben Wolcott, says the report doesn’t show that an increase necessarily creates jobs, but that it doesn’t have the negative effects on the economy that so many were concerned about.

“While this kind of simple exercise can’t establish causality, it does provide evidence against theoretical negative employment effects of minimum-wage increases,” he wrote.

Washington, which currently has the highest minimum wage ($9.32), saw the largest increase in small-business jobs in the nation. Of the four states that upped their minimum wage this year, Connecticut’s largest jumps were in professional and business services, New York’s were in private and educational health services, and Rhode Island’s were in manufacturing in March. Though New Jersey saw a decrease in overall job growth, its largest increase in jobs was in leisure and hospitality.

Ten other states have passed laws raising their minimum wage this year, with Massachusetts’ move to $11 per hour being the highest increase in the country. The effect on the economy as a whole remains to be seen. A federal minimum-wage hike will most likely not pass in a Republican-controlled House.

But this report makes it pretty clear that not only does a minimum-wage increase not have a negative impact on job growth, but it might actually help workers and businesses. It’s going to be harder and harder for Republicans to come up with excuses not to do it.

Below is the CEPR’s chart comparing states based on changes in job growth

wolcott-2014-06-30_494

AFP Photo/ Scott Olson

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