You are here: Home / BM / Joe Biden and the Unveiling of Truth: Misreported Unemployment Rates and the Path to Economic Recovery Through Tax Cuts.
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(ThyBlackMan.com) Black voters saved Joe Biden’s last disastrous presidential run for office. Biden was losing the Democratic Party’s primary in 2020 and black voters stepped up and changed that narrative, making Mr. Biden a winner. Now, this President actively crisscrosses the nation, detrimentally understating African Americans’ unemployment rates, and the unemployment rates of all American workers, professional, blue collar, union, and working-class Americans, making us poorer. Biden thinks he can win our votes and the presidency by doing this (not likely).
In my columns, we gave you economic facts. Let us just revisit some of those facts briefly, because it is important to the title of this piece where it is stated, “An Opportunity to Reveal the Truth About Our Unemployment Rates.” Out of the 12 times the Federal Reserve (Fed) has hiked interest rates, since 1945, to control inflation, like it has recently done, each time the economy went into a Recession, is a fact. We have yet to see that Recession. The reason we have not seen that Recession is in large part due to Consumer Spending.
However, both political parties are keenly aware of the historical fact, that a Recession, as stated above, has resulted from the Federal Reserve hikes in interest rates. So, they are rushing to produce legislation that will continue Consumer Spending. Why? Both parties realize the lie about our Job rates will quickly be undone, as the Real unemployment rate rises, and the Real economy slips into an Economic Downturn, or a Recession. Both political parties realize we do not have a 3.7% economy, but a 7.2% unemployment rate economy, and they are acting in their own best interest to maintain a narrative of a 3.7% interest rate economy. That’s hard to do when workers are being laid off.
While Democrats started the scam of undercounting Job rates, Republicans took advantage of it, and kept the lie going. Former Republican Presidents Bush and Trump used the lies of low Job rates, during their terms in office. Obviously, if you arbitrarily lower the bar when it comes to our unemployment rates, which is what the Clinton administration did, it makes it easier for each political party to say their economic policies achieved various levels of success. Thus, Biden crisscrosses the nation, saying the following: “And [un]employment has been the lowest — been below 4 percent for the longest stretch in 50 years.” Well, that statement is simply untrue, as the Real unemployment rate is 7.2% for January, as established by economists, and the African American unemployment rate, the highest of any worker group, is 9.9%. For more details, and “factual evidence,” Biden and Democrats are doing this, undercounting our Job rates, go now to the article at the link: https://thyblackman.com/2023/10/06/president-joe-biden-and-democrats-undercount-our-job-rates-as-a-recession-looms/).
Democrats, and Republicans are pushing “a Families with Children Tax Cut,” to “sustain” Consumers Spending and reduce the likelihood of a Recession, or perhaps an Economic Downturn. It was Republicans in the House of Representatives, who sponsored the Families with Children Tax Cut Plan, this time. During the pandemic, it was Democrats, who sponsored the legislation. The Families with Children Tax Cut STOOD-OUT, as being effective in creating millions of Jobs during the Covid 19 Economic Downturn.
However, during the pandemic when Democrats sponsored the legislation, Republicans, objected to a direct tax cut going to that group of consumers, “Families with Children,” even though the principle of giving consumers “a direct tax cut,”, resulted, in consumer-spending expanding our economy, and creating Jobs. Nevertheless, regardless of Republicans objections, which was in the Senate, the legislation passed during the Covid 19 pandemic.
Besides the past objections of Senate Republicans, mainly that the recipients of the Tax Cut, Families with Children should be “mean tested,” and work requirements applied, which would make it ineffective as a Tax Cut, there are new problems with this legislation. Amendments to the legislation would extend it beyond sending money to parents. The amendments include offering Tax Cuts to people impacted by natural disasters, Tax Cuts to businesses through 2025 and Tax Cuts to corporations who trade with Taiwan. So, this proposed Families with Children Tax Cut bill is not the pandemic legislation that we observed and experienced in the past.
A great historical opportunity is being presented to President Joe Biden, and Democrats, because of the changing composition of the Families with Children legislation. They should embrace this opportunity. All of us should encourage Biden and Democrats, including the Congressional Black Caucus (CBC) to back away from the Families with Children legislation, and also abandon misleading us, about our Job rates, and tell the nation the Truth. If the Truth is told by Mr. Biden and Democrats, the Real 7.2% unemployment rate economy justifies a Tax Cut!
OUR recovery from Covid 19 showed policy makers, at the federal level how to create Jobs, on a long-term basis. A Consumer Tax Cut, which will lead to Consumer Spending, is clearly the answer, when it comes to long-term Job creation. Baby Boomers are the most suitable group for a Tax Cut. Baby Boomers should be acceptable to all parties, including the GOP. Let us look at the reasons why, this is a smart move for our economy, Biden, Democrats, and the CBC.
1) A 10%, $25,000 Baby Boomer Consumer Tax Cut will be deficit neutral, more flexible, when it comes to pulling forward personal consumption to create a soft landing and is about half as much as the Families with Children Tax Cut. The Covid 19 recovery demonstrated, when you give a direct tax cut to consumers, who make up approximately 70% of your economic activity, you will create Growth, and surplus revenues, making the tax cut deficit neutral.
Don’t take my word for this, let’s look at the numbers. The Treasury Department reported, the U.S. government posted a $119 billion budget surplus in January 2022. It was the first, in more than two years, due to strong growth in tax receipts as the pandemic declined.
2) The age group, beginning at 55 plus years, are currently responsible for approximately 40% of consumer spending in our economy. Baby Boomers are the largest homogeneous population, within that group of consumers. Consumption DATA shows, low-and middle-income Americans are more likely than wealthy earners to spend benefits, from the government immediately, and stimulate economic growth, creating millions of JOBS. Retirees are a major voting bloc nationally, and many are experiencing financial stress. Most retirees are not a part of the work force as Families with Children recipients are, who may temporarily quit working and live off the tax cut. Trump will not tell Baby-Boomers they shouldn’t get a Tax Cut – see how fast his popularity with that voting bloc sinks, if he does so and how fast Biden’s popularity, with Baby-Boomers soars. Retirees are in every Congressional district in significant numbers be they Independents, Democrats or Republicans, and will vote in their best interest.
Finally, we are wary and tired of hearing lies about our Unemployment Rates, from Democrats. Mr. Biden’s unemployment numbers simply don’t add up when fact checked, so should we vote him into another term? However, the numbers to pass the first “named” direct Consumer Tax Cut legislation in the history of this nation do add up. Recently in the House of Representatives, four Republicans joined all House Democrats in voting against what would have been the first impeachment of a Cabinet official in nearly 150 years. The final vote was 216 against the impeachment versus 214 for it. These numbers are encouraging and will enable the passage of the first “named” Direct Consumer Tax Cut legislation purposed to grow Jobs and our economy over the long-term. And a Democratic majority in the Senate is helpful in securing passage of this legislation in that chamber, also.
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.
