October 25, 2020, 7:42 PM EST.
written by Net Advisor™
WASHINGTON, DC. Pre-Coronavirus, the U.S. economy was experiencing a major economic boom with record low unemployment, higher wages and higher incomes. For the first time in decades, this economic growth benefited minorities, the poor, and the middle-class (Report).
Much of the U.S. growth was due to the Trump consumer and business tax cuts; and massive cuts in government regulations that was built up during the Obama-Biden Admin.
The costs to those Obama-Biden regulations broke down to $784 Million every day or $848 per voter, every year.
Democratic candidate Joe Biden promises to reinstate these costly regulations, repeal the Trump tax cuts “on day one”, and get rid of all of the work that led to the economic boom. This is a recipe for a major recession or economic suicide.
Taxes aren’t the only thing that costs consumers money. Regulations are indirect taxes on consumers on the products and services we purchase.
Raising taxes on businesses is also a tax increase on consumers. Only uninformed pundits think that businesses will simply absorb higher costs, and intentionally become less profitable so they have an excuse to lay people off work, and watch investors dump their stock?
That’s not how economics work. Businesses pass on increased operating costs (including higher taxes) to consumers in the form of higher prices – period.
I. Where the Jobs Are.
From an economic viewpoint, one of the stark differences in the two administrations (Obama-Biden and Trump-Pence) is what area of the economy created key jobs.
The Obama-Biden Admin was good at creating government jobs. Government jobs are vital from an administrative view, but can’t be the whole economy.
Most non-essential government jobs don’t produce anything, and are a burden to working taxpayers.
In contrast, manufacturing jobs not only help workers and their families, they create ancillary jobs. These other support jobs can be machines, parts, plastics, metals, and support businesses in the community. They also generate income tax revenue for states and the feds, to support other people including those government gobs.
II. Manufacturing Jobs and the Overall Economy Worse Under Obama-Biden (chart below).
We weren’t in a recession, or had some mystery virus in 2013, or 2015-2016. But something happened that caused a massive decrease in U.S. manufacturing jobs.
It’s very possible that the years of Obama-Biden regulations caught up to U.S. manufacturing, putting U.S. companies out of business or forced to move businesses outside the USA to a more business friendly environment.
According to Forbes, manufacturers added six times more jobs under President Trump, than under President Obama’s last two years.
Obama-Biden created five (5x) government jobs for every one (1) manufacturing, job.
President Trump added six times (6x) more manufacturing jobs than under Obama’s last two years.
— Forbes, Feb. 2, 2019 (Chart, page top).
In September 2016, (Pre-Trump), the world was looking at the slowest economic growth rate since the last recession.
After the 2016 election, all seven of the G7 nations showed economic growth with the U.S. having the strongest growth.
Clearly, something drove all this economic growth, and it certainly wasn’t more government jobs.
III. Economy Now.
The U.S. economy has recovered about half or some 11 million jobs lost due to the Coronavirus. In September 2020, the U.S. economy added 661,000 jobs, reducing the unemployment rate to 7.9%
There are still some 19.4 million people out of work due to Coronavirus lock-downs or Coronavirus business closures.
“In September, 19.4 million persons reported that they had been unable to work because their employer closed or lost business due to the pandemic…”
— Employment Situation Summary, U.S. Bureau of Labor Statistics, Oct. 2, 2020 Report.
This number was higher at 24.2 Million in August. We found that most of the job-losses are occurring in Democrat-ran cities, where lock-downs and other restrictions are keeping people from working. It’s kind of like reverse slavery.
If states decided to safely and fully re-open, the job numbers would clearly improve as they have thus far. We argue that many states have refused to allow people to return to work for political reasons.
If we have major changes in the tax and regulation structure that is harmful for business and consumers; more job losses will occur, driving down wages, and retail prices will be much higher.
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