Weekly jobless claims for the week that ended April 3rd rose to 744,000. The previous week, there had been 719,000 jobless claims and analysts expected the number to drop significantly to 680,000. That did not happen and it was the 2nd week in a row where analysts expected the number of jobless claims to drop, but they rose instead.
Overall, as you’d expect, jobless claims have been dropping as the government’s economy-killing pandemic regulations have been loosened. However, just as a point of comparison, in 2019, before the coronavirus hit, jobless claims were typically running at about 200,000 per week. In other words, the economy is still in really bad shape although that is being deliberately masked by the government at the moment. People may be wondering how so many Americans can be out of work, so many small businesses went under and so many other businesses suffered slowdowns last year, yet the stock market is high and the economy doesn’t seem to be tanking.
Well, one of the biggest reasons the Biden administration seems so hellbent on pushing through an infrastructure stimulus on top of the coronavirus stimulus is because they’re trying to float the economy, keep the stock market high, and hold off an inevitable economic contraction a little longer. Keep in mind that this stimulus money is on top of the fact that 22-23% of the entire money supply we have was printed in 2020.
Unfortunately, all of this is not a cost-free proposition. Money that’s borrowed to put into a stimulus has to be paid back. The new money that’s printed with nothing to back it? That increases inflation. The economic consequences for the irresponsible lockdowns are still coming, but as long as the Biden administration can push them out past another election, they don’t care about the people that will be paying the bills.
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