USA 2020 Elections: Thread

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> Keynesian brain-washed DemLeft can't do economics math...

Biden's Stimulus Checks "Wreck Labor Pool" As People Get Paid To Stay Home

https://www.kansascityfed.org/surveys/manufacturing-survey/tenth-district-manufacturing-activity-expanded-further/
https://www.wsj.com/articles/some-democrats-push-for-permanent-expansion-of-unemployment-benefits-11619197231

There are new concerns that President Biden's $1.9 trillion
coronavirus stimulus package is already harming the labor market
recovery.

While job openings and postings are increasing, there is an issue with
the number of applications as labor participation currently stands at
61.4%, with an unemployment rate of 6.2%. People are not applying for
jobs as they should be as they collect stimulus checks and enjoy a
work-free lifestyle, all on the backs of taxpayers.

There are many jobs available in manufacturing, trade and
transportation, logistics, and the professional sector. But employers
have difficulty sourcing workers.

The latest comments from the Federal Reserve Bank of Kansas City
provide a chilling insight this month into the labor shortage
developing at manufacturing firms across Denver, Oklahoma City, and
Omaha:

    "Stimulus and increased unemployment money are wrecking the labor
pool. Lower-level employees are quitting to make just as much not
working."

So, lower-level employees are making more money collecting stimulus
checks and other handouts under the Biden administration. This was
very similar when former President Trump dished out helicopter money
during the early days of the pandemic.

What this creates are more bottlenecks for the supply chain as labor
becomes scarce.

    "It is very difficult to handle the increased business with supply
chain issues across all materials and finding anyone who wants to
work. The federal government has incentivized people to stay home and
not be productive."

Other employers report:

    "Unemployed workers have no incentive to return to work given the
COVID bonus payments."

What this means is that entry-level pay will have to increase to get
low-level workers off the couch. This will create more cost pressures
for companies that will either be absorbed or pass onto the consumer.

The Biden administration effectively destroys the labor market,
resulting in significant repercussions for the real economy, such as a
labor shortage that could stall the recovery.

In particular, a McDonald's in Tampa, Florida, offered $50 last week
to anyone who would show up to a job interview.

WSJ said labor shortages in the food industry affect nationwide and
independent eateries as they can't source enough workers for the front
and backend. Some fast-food chains are offering signing bonuses.
Chipotle Mexican Grill Inc. is offering free college who work at least
15 hours a week. Taco Bell is giving paid family leave to company
store managers. Other operators are boosting pay.

But even with all the perks, a labor crunch affects many businesses in
various industries to retain workers as the stimulus money adds a
barrier to bring back low-level workers.

JPMorgan recently warned clients of a massive labor shortage in the US.

However, JPMorgan did not expand on what may be causing this
unprecedented schism within the economy - after all, for normalcy to
return, people must not only be employed but must want to be employed
- it did suggest that the "robust" government stimulus may be keeping
workers on the sidelines.

In a letter sent to the White House Friday, WSJ explains Democrats on
Capitol Hill are pushing for the Biden administration to make the
jobless benefits permanent, the onset to universal basic income.

While politicians on Capitol Hill have cheered about people's QE since
the pandemic began, the consequences of paying low-level workers more
to sit at home than to work could derail the economic recovery.