Today it was reported that jobless claims dropped to their best level since 1969 as Joe Biden is now presiding over the strongest economic recovery is US history. All the way through October, GDP increased:
‘[The] GDP increased at a 7.8 percent annual rate—that’s adjusted for the current inflation. The Federal Reserve expects real growth of 5.9 percent for all of 2021, followed by another 3.8 percent increase in 2022. By any recent standard, these are extraordinary gains. From 2000 to 2019, real GDP grew at an average annual rate of 2.2 percent and never reached 3 percent. Investors have noticed: From January 20 to December 7, 2021, the S&P 500 Index jumped 21.7 percent.
The data showed:
‘Strong growth usually means healthy income gains, and the disposable income of Americans grew 3 percent after inflation over the 10 months from January to October. That far outpaces the gains of only 0.5 percent for the comparable period in 2019 and 1.7 percent in 2018.’
‘Wages and salaries comprise nearly all of most households’ incomes, and those earnings also are rising much faster than normal. From January through October, all wage and salary income paid by private businesses increased 2.4 percent after inflation, compared to gains of 0.3 percent for the comparable period in 2019 and 0.7 percent in 2018.’
The big thing on voters minds of course is inflation. So what caused it? A large increase in wages and salary income. There were “5,675,000” unemployed Americans at the start of the year. But they got a job in the meantime. The GDP fell from 6.3 percent last January to 4.2 percent in November. That was a 33 percent drop over 11 months, which is rather outstanding. In comparison, it took “six years for the jobless rate to fall by one-third” after the Great Recession, which was right at the beginning of this century.
The reason prices have jumped six percent annually for the previous half of the year was the result of big gains in increased income, but that affected the “inflation rage:’
‘[Large] job gains lifted total wage and salary income well above inflation, new hires typically earn less than the average in their industries. One result is that as prices have risen at a 6 percent annual rate over the past six months.’
Rising wage earnings have fallen behind during the recent inflation for average hourly and weekly earnings in the inflation period:
‘That may be temporary, since wages and salaries generally take more than six months to catch up when inflation heats up suddenly.’
Oil prices have dropped over 20 percent in the last three weeks. Then, there are the supply chain bottlenecks and labor shortages.
The Washington Post also showed a good report on economics for President Biden:
‘The public just doesn’t like inflation, no matter what economists or politicians might say. And while economists — or columnists — don’t’ have face the voters’ wrath, presidents do.’
So why are the president’s approval ratings on the economy so low compared to his “remarkable gains:”
‘It’s really not very mysterious: Americans’ perceptions of the economy always lag actual economic conditions when those conditions have recently changed. Everyone remembers how terrible the economy was less than one year ago, and many Americans are still unconvinced that the turnaround will last.’
Good news at last.
Three White Lions podcast, Gloria Christie reads her week’s most important news/ commentary stories in the liberal online newspaper The Bipartisan Report. Gloria Christie Report her newsletter for people on the go. Written in her own unique style with a twist of humor in a briefer version of Bipartisan Report. Christie’s Mueller Report Adventures In Bite-Sizes a real-life compelling spy mystery (in progress). Find her here on Facebook.