LETTER: Biden and the Fed keep getting it wrong
High interest rates, paying people not to work.
January 10, 2023 - 9:00 pm
Great news: There is still a record-high number of jobs going unfilled. Businesses are looking to fill tons of openings, much to the chagrin of the Federal Reserve. It wants hiring kept at a slow pace and wages kept from rising to slow inflation. So the Fed’s ill-conceived plan to tame inflation by continuing to raise benchmark interest rates will continue.
Fed officials don’t understand we are fighting a supply chain-type of inflation. They will continue to throw gasoline on the fire by raising their rates, which affects everything we buy across the board. The degree of ineptitude of the Biden administration and Jerome Powell’s Fed really is stunning.
Couple this with the government paying people not to work, and we have a dysfunctional workforce. Between unemployment benefits and Obamacare subsidies in 14 states, a family of four can stay home and collect $80,000 or more annually. This state of affairs eliminates the incentive to work. These are upside-down, troubling times.