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(ThyBlackMan.com) We know President Donald Trump cannot deport 11-12 million or more economic immigrants, in four years. It will even be challenging for him to deport the reputed 1-2 million or more economic immigrants, that came across the border illegally, during Biden’s term in office. So, what is the genuine answer or solution to this problem of surplus labor, in the United States, that American voters will embrace? Let me give you a hint – It’s not turning our Democracy over to an authoritarian and oligarchs. America can grow its way out of this Economic Downturn with Mr. Trump, at the helm.
Which political party, “is honestly” speaking to working-class people, and America about its economic future? Which political party can be TRUSTED. Aren’t these the questions we all seek an answer to? Working-class Americans shifted their votes to the right, electing Mr. Trump to the presidency of the United States, in their quest for an answer, after losing trust in Biden and Democrats.
Risking their future, working-class Americans, who are desperate for a solution to long-term Job creation, and economic growth, indirectly created a groundswell of reaction, around the nation, and convulsions in financial markets, due to voting for Trump, which launched his social and economic policies. Working-class Americans want to see good paying Jobs created consistently, and an economy that works for them, over the long-term, and not just for billionaires, millionaires and corporations, and New York political elites, who now control the Democratic party.
However, in their speeches, neither party’s leadership is directly addressing the concerns of working-class Americans. Democrats hurt working-class Americans financially, economically, every day, as they left office having implied the U-3 category unemployment rate, at 4.1% for February (their official rate), is the nation’s most comprehensive unemployment rate. It is not! A 4.1% unemployment rate says, we have a 96% fully employed economy. Democratic leaders, distort our economy, “when they imply,” the nation has a 4.1% unemployment rate economy (the U-3 category rate), for February, even if they are not in the White House. The Bureau of Labor Statistics economists, who clearly have stated the U-6 category rate of 8.0% unemployment, for February, from the Table of Alternative Measures of Labor Underutilization, is the Real, and most comprehensive rate, not 4.1%. For more details, go to TheFixThisTime.com.
Biden’s unemployment numbers simply didn’t add up when fact checked, and neither will Trump’s unemployment numbers, as he adopts and embraces Biden’s policy of misinformation, saying the February U-3 category rate of 4.1% is comprehensive of our monthly Job situation. Democrats lied and said we have a better economy than we really have. Working-class Americans, in seeking a new direction, are also aware of the shortcomings of Republicans. President Donald Trump, and Republicans know “the sentiment,” and “opinion” of American voters is, handing tax cuts to billionaires, millionaires and corporations, which he and his party represent, is not the solution either, to economic growth, and Job creation.
The two major political parties, and their leaders are at loggerheads, when it comes to how to create Jobs, and grow our economy over the long-term and this is primarily due to the self-interest of their billionaire contributors. Notice, I did not say selfish interest, nonetheless, billionaires, and millionaires contribute to the two major political parties, because they want something. Thus, the realization of any solution to the problem of long-term Job creation, and economic growth will have to involve, besides political leaders, these rich donors, who must also weigh in.
But because we know, I mean the nation knows, how to create Jobs, knowing high interest rates, and tariffs will drive unemployment rates, and layoffs higher, any anxiety over Job Losses can be assuaged. Remember, we have done this before, that is create Jobs, and experienced high Job creation monthly, during the nation’s recovery from the Covid 19 pandemic, and we can do it again.
If we decouple ourselves, from the corruption surrounding the underreporting of the nation’s unemployment rates, by Democrats, and take politics out of the Covid 19 pandemic recovery completely, we will be able to get a clear, and objective understanding of how to duplicate the process of long term Job creation, and not just duplicate the process, mind you, but we, the people, can chart a historical course to make the process more efficient. We know over 10 million Jobs were created consistently over the last few years, and we know the federal government spent trillions doing it. These are verifiable facts. So how was the money spent, and the Jobs created? What did we (all of us) get for our money?
The Covid 19 pandemic demonstrated we have a relatively simple economy, when it comes to creating Jobs, and growing the United States economy. The consumer through consumer spending powers about 70% of Job creation, in our economy. Simply expressed, that means consumers spending money is responsible for 7 out of every 10 Jobs in our economy.
Here is what we know when it comes to the factual numbers (data). To show the U.S. economy is a consumer driven economy, we can just look at the Cares Act, the single largest relief bill in the history of the nation at the time of its signing ($2.3 trillion), into law on March 27, 2020. We find 75%-80% of the money legislated was spent on enhancing consumer spending, either directly, or indirectly through stimulus payments, tax credits, and tax cuts. Additionally, note this about the $2,000 stimulus check, it was not recorded as part of the gross income of its recipients. So, there was no income taxes paid on it (it was given to us tax free (a tax cut), so we could go out and spend it, creating demand, which led to creating Jobs in our economy).
Consumer spending, as a result of the Cares Act (stimulus), tax cuts, and tax credits, 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, leveled headed and wise policy makers did not turn to, what President Trump and Republicans have always sold us, and are now attempting again to sell us, as a fix for our economy, and that’s tax cuts for billionaires, millionaires and corporations. They turned to what would work, and it did work, and it was consumer spending.
There were such programs, as the $484 billion Payroll Protection Program, and the $367 billion outlays of various loans and grant programs to businesses, individuals 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 and drives home the point, 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 prior 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 the tax cut to Families with Children does not give the treasury the flexibility it needs to fix the economy, this time. Its payments must be issued to parents monthly based on a rigid, and pre-calculated amount based on the number of children. So, the ability and flexibility to increase, or decrease consumer spending, through pulling demand or payments forward to create a soft-landing for the economy is not possible, with the Families with Children tax cut.
However, there is a more acceptable group of recipients, for Mr. Trump, 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 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 coming direct consumer tax cut. Distribution of the Baby Boomer Consumer tax cut, by appropriately pulling demand forward when needed, will create a soft-landing, and give the Secretary of the Treasury, flexibility.
“The solution,” which is to grow the economy, addresses the issues mentioned above and more, and at the same time reduces the deficit, is a 10% $25,000 Consumer Tax Cut, with Baby Boomers being the object of the tax cut. The age group, beginning at 55 plus years are responsible for about 40% of the spending done in our economy. Baby Boomers are the largest population, within that group of consumers.
America is a seventy percent, Consumer Driven economy. That means, 7 out of every 10 Jobs, in our economy are created by Consumers Spending money. If you give a direct tax cut to the 70% (the consumer), who is powering and growing your economy, you are going to get long-term growth, and Job Creation through “NEW” spending, by the 70% (the consumer), who is powering, and growing your economy; producing brand “new streams of revenues,” which will lead to reducing budget deficits at the state, local and federal levels. Isn’t this what President Trump and Elon Musk want to accomplish? Click on TheFixThisTime.com.
Staff Writer; James Davis
Mr. Davis is a Financial Analyst. His articles are about relating facts in a usable, truthful, and understandable way. That way, WE ALL WIN. James is, the author of three books, among them, “The Fix This Time,” Boost Your Retirement Income! Simultaneously Create Jobs and Spur Economic Growth (https://www.amazon.com/dp/B00MI3PD2M). Reach out to James @ his blog https://thefixthistime.com.
Question? Comment? One may use this email address; MrDavis@ThyBlackMan.com.
