Joe Biden's inflation problem undercuts May's jobs report

 Each month, Joe Biden recites essentially the same speech telling the American people that the economy is creating jobs. After that, he mentions that job growth at the start of an administration is the strongest in history. Still later, he mentions that the economy was a mess when he took over. (That's a bald-faced lie.)

I wrote in this post that GDP for Q4 of 2020 was 4.8% and that the GDP for Q1 of 2021 was 6.5%. That's a far cry from being a mess. A mess would be the economy contracting by 1.5% or thereabouts. That's what happened in Q1 of 2022. According to the Fed, we're currently growing the economy at 1.3%. That qualifies as a mess, too, especially with inflation this high.

The thing that's been missing from Biden's monthly speeches is the breakdown by races. This month's report showed the unemployment rate for whites steady, with the African-American unemployment rate and Hispanic unemployment rate getting higher. The unemployment rate for Asian-Americans dropped. Compare that with the all-time lows for African-Americans and Hispanics and a 70-year low for women.

That isn't a mess. That's a real economy. Further, inflation was 1.4% when Biden got inaugurated. There is a way to get inflation under control without the Fed acting but it isn't a positive step. It's called recession. This article says that we're heading in that direction:

1. The job market: The US jobs report for May showed Friday that 390,000 positions were added last month. That's a solid number, and higher than expected, but down from 428,000 in April. For much of the past year, roughly 450,000 to 650,000 jobs have been added each month.
2. The housing market: Borrowing costs have jumped as a result of the Fed's decision to start hiking interest rates. A 30-year fixed-rate mortgage averaged 5.09% for the week ending June 2, up from 2.99% the same time last year. That's driving some prospective homebuyers out of the market, helping to ease red-hot demand. Sales of existing homes in the United States fell for the third consecutive month in April.
3. The Beige Book: The Fed's latest survey of economic conditions released this week, known as the "Beige Book," showed that all 12 districts across the country experienced growth, but the impact of tighter financial conditions was starting to become apparent. "Retail contacts noted some softening as consumers faced higher prices, and residential real estate contacts observed weakness as buyers faced high prices and rising interest rates," the report said.

Biden's inflation problem might turn into Biden's recession. If that happens, that likely will turn into the Democrats' 2024 electoral massacre. If that happens, and it definitely might, it'd likely mean the end of the Squad in terms of political power.

Finally, people aren't worried about finding a job. They're worried about inflation destroying the family budget: