You are here: Home / BM / President Joe Biden Owes Working-Class Americans a Level Playing Field as Economic Migrants Cross Our Borders.
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(ThyBlackMan.com) In the January 6th hearings, we saw the “Truth,” make a difference. The affirmation of the truth, by the January Sixth Committee, will be permanently positive, for our Democracy. By referring Mr. Trump to the Department of Justice, on 4 charges of wrongdoing, the Committee says, Mr. Trump is not above the law, which means the TRUTH mattered, to the Committee. Remember, the January sixth insurrection, started with Trump’s “Big Lie,” which challenged, and continues to challenge the honesty of our institutions.
But, Democratic Party members, who champion the actions of the January 6th Committee, in their affirmation of the truth, continue to look pass Biden’s lie, about our Unemployment rates, saying his 3.5% December rate is comprehensive of our Job Situation. It is not. Let us be blunt, Mr. Biden negatively impacts every single working-class American, in this Democracy, with that lie. Mr. Trump also, in terms of impact, would have had the same impactful reach, had he been successful with his “Big Lie.” But the January Sixth Committee rightfully so, stood up, got involved, and injected the truth, into Mr. Trump’s account of events. By lying, Biden, and Trump deny us, the ability to enjoy good decisions, based on the TRUTH. That’s just not right.
Democratic Party leaders must get the “log out of their own eyes,” to be fair with American voters, Republicans, other Democrats, and Independents, if we are going to have a more perfect union. Democrats are acting like Trump – saying they are above the TRUTH (law) when it comes to getting our Jobless rates right. If the search for the TRUTH is applied, in the same way to this issue, as the January 6th Committee applied the search for the truth to Mr. Trump’s lies about the 2020 election; a fact and evidenced based investigation, it will really be easy, for all of us to reach a consensus, on the subject of Job rates.
Some of you may not understand how a few percentages, can make a gigantic difference. If you undercount our unemployment rates, which leads to hiding layoffs, with a Job rate lower (Biden’s 3.5% rate for December) than the real Job rate, (6.5%), Biden deliberately, counts only about 54% of “all laid-off workers.” He counts, only 49% of black workers, whose rate is 5% higher over the real rate, at 11.5%. He leaves 51% of laid-off black workers, uncounted. Thus, Biden’s use of the 3.5%, or the U-3 Jobless rate, is purposely misleading (he should count all unemployed workers). It gives the impression, we have a better economy than, what is, factually true.
The U-3 category rate of unemployment was never meant to be viewed, as being comprehensive of our nation’s unemployment situation, because it is narrow in scope, as it measures a small worker group, hence, it will always flash a low Job rate number. Economists, at the time the changes to the unemployment rates were done in 1994, during the Clinton administration, agreed the most comprehensive of the category of unemployment rates is, the U-6 rate, which was 6.5%, for December.
Yet, somehow U-3, the lower of the two category rates, became our official unemployment rate, with no one in the Clinton administration including, the Secretary of Labor, at the time, Robert Reich, or anyone, in the Bureau of Labor Statistics taking credit, for making U-3, the official rate. But this does not make the real rate of unemployment, 6.5%, magically disappear.
As might be expected, we want a level playing field, in terms of real information, and the TRUTH, about our Job rates. It is, in all of our best interest; we get an understanding. There are no villains among us, on either side, when it comes to American politicians versus working-class Americans, and our desire, for the truth. The truth shouldn’t divide us when it comes to the unemployment rate issue. Aren’t Biden, Democrats, and working-class Americans on the same team?
So, what would the features of a level playing field look like?
Abandon the Clinton era policy of undercounting our Job rates, with a political rate of 3.5%, which hides the real number of our current, and coming layoffs. No one, literally, in the Clinton administration, or the Bureau of Labor Statistics is stepping-up, and saying I did it, when it came to making U-3 our official rate. It is time for the Federal Government to use accurate numbers, and level with working-class Americans on the issue of unemployment rates, because it is a game changer. American workers are owed this, with a 3rd recession in 15 years, breathing down our throats, and millions of economic migrants, crossing the Southern border, seeking asylum, and Jobs. A 3.5% Job rate economy is completely different, from the real economy of 6.5%, that will grow in Joblessness in the coming months, as the Federal Reserve hikes interest rates, to curb inflation.
Once, the Biden-Harris administration, affirms the TRUTH, as the January 6th Committee did, showing the nation the real economy, and the real unemployment rate, of 6.5% for December; that actually opens up the need to create future jobs, once the Fed ends interest rate hikes. A Consumer Tax Cut can be justified, and is doable, to create economic growth, and Jobs, because of the truth. The tax cut would create a soft landing. Higher rates of layoffs, caused by the interest rate hikes, will increase unemployment rates beyond 6.5%, reduce consumer spending, that will reduce consumer demand for goods, and services, bringing inflation under control and a recession.
Dr. Larry Summers, former director of the National Economic Council in the Obama administration, and former Treasury Secretary, in the Clinton administration is promoting “Families with Children,” as recipients of a consumer tax cut, to create jobs, and grow back lost demand, through consumer spending once the interest rate hikes, end. But Senator Joe Manchin, and Republicans have objected in the past to “Families with Children,” being recipients of a tax cut, to grow back lost demand.
Here is what Summers said, in a Washington Post article, on December 21, 2022.
“Fiscal policy will need to respond if and when (a) recession comes. There will not be room for massive, across-the-board efforts. But now is the time to put in place carefully targeted measures to “refund child tax credits,” strengthen unemployment insurance and be ready to pull forward federal spending on maintenance and replacement cycles to periods when overall demand is soft.”
“Refunding child tax credits,” amounts to a Tax Cut to Families with Children.” But the GOP doesn’t like them, as tax cut recipients. They want them “mean tested,” and work requirements applied. In objecting to Families with Children, as recipients; are Republicans, and Senator Manchin, also objecting to the confirmed principle, of consumer spending, as a means to grow back lost jobs, and pull us out of this Downturn? Even a 5th grader can understand this, if you give a tax cut to the 70% (the consumer), who is powering your economy, you are going to get a burst of growth, and job creation through “NEW” spending, by the 70% (the consumer), who is powering, and growing your economy.
There is another group of consumers, whose consumer spending will ensure those same families with children have jobs, and a means to survive, and grow successfully out of this coming Recession. Therefore, we don’t have to give up on a soft landing, after all. As a compromise, Baby Boomers, as a homogeneous group, who are retiring at a rate of 10,000 a day, will statistically be the better target, of the consumer tax cut. Here is why.
The age group, beginning at 55 plus years, are responsible for approximately 40% of consumer spending. Baby Boomers make-up the largest population, within that group of consumers. Baby Boomers, who will receive a $25,000 Consumer Tax Cut, at the time of retirement, once they start receiving Social Security retirement payments, will spend the money, creating growth, and jobs, that will accelerate pulling us out, of this Economic Downturn, and set us on a path of long-term Job growth. Also, a benefit of consumer spending, as an effect, of a 10%, $25,000 Consumer Tax Cut, will result in continuing “deficit reduction,” as consumer spending is doing, right now.
A note: Readers, my account, @Jamesabides1, was permanently suspended, on Twitter December 1, 2022, at about 1:00 pm, for expressing and advancing the same factual information, found in this article. Go to @Jamesabides1, see if you can understand, why the TRUTH, has been suspended, in the market square of ideas, and concepts, on Twitter. Suppressing free responsible speech is unacceptable, in our Democracy, no matter who does it. The TRUTH matters. The January 6th Committee affirms it.
Staff Writer; James Davis
Mr. Davis is a leading expert and consultant in Financial Analysis and Social Dynamics. He is a graduate of Florida A. and M. University (FAMU), a former stockbroker, and a human rights activist who resides in Sanford, Florida. He was awarded the prestigious Governor Haydon Burns Scholarship to attend FAMU and while at FAMU was awarded the first Martin Luther King Scholarship. He is the author of three books, among them is “The Fix This Time,” Boost Your Retirement Income! Simultaneously Create Jobs and Spur Economic Growth (https://www.amazon.com/dp/B00MI3PD2M).
Mr. Davis can be reached through his blog @ https://thefixthistime.com.
