The economy is short on people in high-visibility areas, and it’s unclear if this is a short-term or long-term problem. Surprisingly, the Biden administration appears to prefer the latter (more on that in a bit). Although most Americans are far from financially secure, the stimulus has boosted the economy’s natural growth. During both the Trump and Biden administrations, stimulus initiatives raised the level of unemployment compensation. As a result, many families now have a larger financial buffer than they did previously.
Bad jobs frequently turn into excellent ones when they pay more. Therefore salaries will grow if employees are scarce compared to the number of available job opportunities. The federal government is scorching the economy and fueling inflation in two ways: overspending and overregulation. Along with particular state and municipal administrations, the federal government has long been a source of supply issues. Vaccine requirements, the most recent and visible example of a regulatory roadblock, prevent firms and workers from operating normally.
Stagflation is a result of inflationary stagnation, as it was dubbed in the 1970s. If today’s voluntary unemployment is allowed to continue, tomorrow’s involuntary unemployment will be joined by something far worse. Rather than learning from the past, Joe Biden seemed to like reliving it. He is keen to repeat a previous policy blunder, forcing potentially productive Americans off the job by placing them on welfare. President Lyndon B. Johnson’s Great Society goal drove welfare expenditure as a proportion of GDP to quadruple in the 1960s.
The height of perversity in the 1980s and 1990s when the federal government spent billions to make societal issues worse purposefully. A brilliant Republican governor from Wisconsin, Tommy Thompson, began chipping away at the welfare problem in the late 1980s. The 104th Congress, headed by Republicans, pushed President Law Clinton to sign a significant federal poverty reform bill in 1996.
Since the War on Poverty in 1965, the labor-force participation rate among bottom-quintile earnings has dropped from over 70% to 36%. The same issues of welfare-induced underclass pathologies that Auletta documented also exist today. Throughout this time, the left has been seeking a way to reverse any welfare reforms. Progressives saw their window of opportunity open in 2021, with the inauguration of Joe Biden.
According to the Heritage Foundation, the proposed child allowance policy would abolish all job restrictions and incentives in the present child credit scheme. CTC is essentially a no-strings-attached gift because there are no employment or education requirements. It’s a strategy to revert to the open-ended welfare expenditures of the pre-1996 era. According to Robert Rector, Joe Biden’s idea to put work requirements on welfare claimants is intended to upend welfare reform pillars. Work requirements cover a lot more than simply putting individuals into employment to boost the economy.
According to the reports, today’s voters care more about personal responsibility and upholding the work ethic. Therefore, CTC has become a particular point of vulnerability for Democrats, but it may be a windfall for Republicans. “Shouldn’t people make an effort if they’re going to aid children?”