Everything inflating in price except the price of labor. The economy is in freefall. Only exponential printing of the currency can temporarily stall the inevitable disinflationary collapse that is coming. More than 9 million jobs sit unfilled in the U.S., and a record number of workers are quitting. Almost 15 Million Americans Remain On Government Dole. 15 Million are on the dole because they can. And they'll stay on the dole as long as the gravy train keeps coming. It used to be 15 million out of work, and oil at $75 a barrel would mean we are heading into a recession. Except the real number is around 60 million plus!! So...NOW what?? It means we are deep into an implosion. Amid a record number of job openings, Americans are taking their time looking for work, with only about 10% of job seekers actively searching for a new gig. So why unemployed Americans aren't looking for work? The answer is quite simple. Government pays them more money to sit home doing nothing until the checks run out! Biden's policies are contributing to this problem. He extended unemployment benefits through July. The lease eviction moratorium has also been extended. Not to mention the last stimulus payout . Biden handing out record amounts of cash to people to stay home despite record numbers of jobs available. I see anecdotal examples all around me. We're talking about human nature for people who have little if any self discipline. Get up early every day and go to work for pay ;OR stay home watch TV, play computer games, hang out with friends and let the government checks roll in. We know what's happening. So the US lost 20 million jobs due to the pandemic, but they claim there are now 19 million job openings. Yet there are still 15 million people on some form of state unemployment. They are unemployed because they want to keep receiving money from the government and sit at home doing nothing. Forever...it can never end. We are toast. Stimmy checks and money printing to infinity. Hyper-inflation and then a deflationary depression. The pandemic finished off this debt-ridden consumption nation. The problem is that way too many people in this country have no skin in the game. They don't care. They pay the bills they need to, so that it doesn't interrupt their life and meets their needs and wants. Many of them have nothing to lose. That is not to say that all poorer people are that way. Quitting or collecting unemployment is not an option to many americans . But it is to plenty of others - because they have nothing or not much to lose. The billionaires are continually on the taxpayer dole. Subsidizing planes, yachts, stadiums, carried interest, stock buybacks..... Every single major corporation in America is subsidized by the taxpayer, every one corporate welfare queens and over weight debtors every where I look. Not to mention that the trillions of stimulus indirectly ended up in their hands. Giving people money to buy sail phones from Apple is a stimulus to Apple. The rentiers don't get the stigma the petty parasites do. This is all By design. Welcome to the final phase of a universal income. Last step in the final dollar destruction, and the perpetual enslavement of most Americans. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to hit the like button, hit the subscribe button, and don't forget to also hit the notification bell. Thank You. Let's see what has changed recently that might impact employment. I am pretty sure that companies didn't change much if anything about their wages or growth opportunities. What did happen is a huge countrywide almost year long shutdown due to the pandemic. I wonder which one had the biggest impact on employment? The reason most people who are unemployed are able to stay unemployed are the extra unemployment benefits that pay many of them more than they made while working and allow them to stop paying their rent and utility bills.Trust me, once the extra unemployment runs out and they have to pay rent again, people will get back to work. Either that or companies will figure out how to operate with fewer employees which is already happening. But for now they are sitting on a pile of free money that they have to spend before looking for a job again. Hunger and homelessness will be a good motivator to find a job when that money runs out. These same people can be seen in restaurants and bars at night not caring one bit about COVID. Covid is simply an excuse not to look for a job now. At the same time, supply and demand will rectify the situation. The #1 reason for not working is the fact that the government hasn't shut off the money spigot yet. Paying people not to work is the problem. The states that cut the extra benefit saw their unemployment rates shrink. The federal government is trying to force up wages with the continuance of supplemental unemployment insurance, delaying rent payments, utility payments, student loan repayment and mortgage forbearance. President Biden's statement that businesses ought to pay more ignores basic business reality. Look at all the cities that saw tax revenues plummet because of the shutdown. This is how the real world works outside of the government printing press. Take a look at the border. The job market will not reset. It will only leave those who feared covid with nothing. No job. No government freebie. No eviction protection. NOTHING. These are all set to expire and those who sat around will feel like someone without a chair when the music stopped. I wonder who they will blame. In Technology, it is normal for corporations to outsource overseas and look good at the same time in the eyes of the general pubic by saying - "we cannot find US employees that are skilled". Reality is we cannot find US employees at third world salary. The Federal Reserve is supposedly stimulating the economy as it prints trillions of dollars out of thin air and the U.S. government hands it out for people to spend. But that it’s really doing the exact opposite. In fact, the trillions in newly printed money have helped create a labor shortage despite high unemployment. If you’re tired of binge-watching Netflix, there are likely a few restaurants in your neighborhood that would love to hire you. A job might help relieve the boredom. On the other hand, why work when one can just be one of the more than 6 million former workers now collecting pandemic unemployment insurance? Those millions are in addition to the 3.6 million former workers collecting ordinary unemployment insurance. For many workers, these benefits now total $300 per week. In March, President Biden extended the program until September. And then there are the many millions more who have recently received a piece of the third round of stimulus payments. All three bailouts combined to total around $460 billion in checks mailed out to Americans. So, it shouldn’t be an enormous shock when we find out that many employers are having trouble finding workers. One McDonald’s restaurant is offering bonuses just for showing up for an interview. One eatery is offering a $400 sign-on bonus. Nor is it just the service industry that can’t find workers. Construction employers are reporting shortages, as are trucking operations. The NBC affiliate out of Green Bay, Wisconsin, reports that the price of gas may increase because so few tank truck drivers can be found. The problem is “a lack of qualified drivers.” Even government employers—who tend to offer more job security and a lot more vacation time than private firms—are offering extra cash to get more applicants in the door. Millions of Workers Have Also Left the Labor Force. An endless stream of unemployment checks isn’t the only thing fueling the worker shortage. Record numbers of Americans are leaving the labor force entirely. In January 2020, 96 million American adults were outside the labor force. That shot up to 104 million in April of last year. But as businesses opened up and increased hours, there were still 100 million Americans not in the labor force. In other words, over the past year, an additional 4 million workers exited the labor force. These people are not actively looking for work, are not on unemployment, and are not factored into the unemployment rate. Of the 100 million adult Americans who are out of the labor force, 6.5 million say they want a job now. Yet, for whatever reason, they’re not collecting any wages, even in a time when we’re being told anyone can walk into a restaurant and get immediately hired. In other words: yes, millions of Americans are being paid to stay home, but that’s not the whole picture. Millions more have given up looking for work altogether. The Illusion of GDP Growth. This contrasts with the rosy picture of employment that the regime is now trying to paint. For example, we’re being told that the employment situation is excellent because the headline unemployment rate has fallen over the past year from 14.4 percent to 6.1 percent. That’s certainly a big improvement, but it also suggests that the number of unemployed job seekers remains high. An unemployment rate of 6.2 percent, after all, puts unemployment at a higher level than anything experienced between 1994 and 2008. It’s not exactly a low rate, and it’s nearly double the unemployment rate of April 2019 (3.3 percent). The narrative of an employment boom is so sketchy that even Fed personnel—i.e., Minneapolis Fed president Neel Kashkari—admits the unemployment rate is more like 9.5 percent. And then there’s the unconvincing overall narrative of economic growth. As noted by Daniel economist Lacalle, one should naturally expect big increases in GDP when massive amounts of monetary stimulus have been pumped into the economy. GDP is based largely on spending, and spending goes up as trillions of new dollars are printed. Lacalle writes: There is an overly optimistic consensus view about the speed and strength of the United States’ recovery that is contradicted by facts. It is true that the United States recovery is stronger than the European or Japanese one, but the macrodata shows that the euphoric messages about aggregate GDP growth are wildly exaggerated. Of course gross domestic product is going to rise fast, with estimates of 6 percent for 2021. It would be alarming if it did not after a massive chain of stimuli of more than 12 percent of GDP in fiscal spending and $7 trillion in Federal Reserve balance sheet expansion. This is a combined stimulus that is almost three times larger than the 2008 crisis one, according to McKinsey. The question is, What is the quality of this recovery? The answer is: extremely poor. The United States real growth excluding the increase in debt will continue to be exceedingly small. No one can talk about a strong recovery when industry capacity utilization is at 74 percent, massively below the level of 80 percent at which it was before the pandemic. Furthermore, labor force participation rate stands at 61.5 percent, significantly below the pre-covid level and stalling after bouncing to 62 percent in September. Unemployment may be at 6 percent, but it is still almost twice as large as it was before the pandemic. These figures must be put in the context of the unprecedented spending spree and the monetary stimulus. Yes, the recovery is better than the eurozone’s thanks to a fast and efficient vaccination rollout and the dynamism of the United States business fabric, but the figures show that a relevant amount of the subsequent stimulus plans have simply perpetuated overcapacity, kept zombie firms that had financial issues before the pandemic alive, and bloated the government structural deficit and mandatory spending. A Temporary Labor Bubble. So then why the labor shortage? As with GDP overall, it’s helpful to look to money printing as a partial explanation—we should absolutely expect to see a surge in demand for employment as a result of the central bank printing up trillions of dollars. In our money printing–based economy, printed money is being substituted for production. Thus, millions of workers can stay home while demand remains steady, or even increases. Idle workers still have a lot of dollars to spend. Demand continues upward even as production falls. Contrast this with how a labor market works in a normal economy. In a normal economy, the fact millions of workers are electing to stay home rather than produce anything should have a depressing or stabilizing effect on the demand for labor. That is, 10 million or so idle workers would mean workers have far fewer dollars to spend. This in turn would mean less demand for goods and services such as restaurant meals and retail sales. This would then tend to keep wages flat as well. As Say’s law reminds us, production must precede demand in a functioning economy. It is the act of producing goods and services which produce the income necessary to increase demand. So what are the prospects for this labor bubble? In the short term, we can hazard some guesses about what happens. Demand is likely to continue to increase, as is price inflation. As Warren Buffet recently highlighted at a shareholder meeting, “We are seeing very substantial inflation…. We are raising prices. People are raising prices to us and it’s being accepted.” In the medium and long term, this will mean reduced purchasing power for those relying on unemployment checks. How the employment bubble will play out beyond this summer however, will depend somewhat on whether the federal government again extends benefits and at what payment level. If benefits remain flat, then the real value of benefits will decline and at least some workers are likely to more enthusiastically seek work again. In any case, we’re still in the early stages of a boom fueled by unprecedented amounts of money creation. Trillions have flowed into households via stimulus checks and unemployment checks. Yet although there are growing signs of price inflation, consumer prices in many cases are still adjusting to the new realities of money supply greatly outpacing production. For those looking for a chance to build some job experience, now is the time to do it. This wage and employment bubble is unlikely to last. This was The Atlantis Report. Please Like. Share. Leave me a comment. Subscribe. And please take some time to subscribe to my backup channels, I do upload videos there too. You'll find the links in the description box. You will also find a PayPal link if you want to make a donation. Thank you wholeheartedly to all those of you who have already donated. Stay safe and healthy friends!
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