Alternative Visions - How Biden and Mainstream Media Spin the Jobs and Inflation Reports

Today’s show main theme discusses how the Biden administration and mainstream media are spinning the latest jobs and inflation reports. The official ‘messaging’ by politicians and media alike is that both jobs and inflation are steadily-if slowly-improving. The messaging: the August jobs ‘cooled’ to 187,000; inflation moderated to 3% down from last year’s 9% peak, and wages are rising.  Speaking around the country, Biden claims that jobs, inflation, and rising wages show ‘Bidenomics’ is working. But a closer look at the data since April 2023 shows little progress the past four months: since April 2023 job creation is stuck at around 180,000/mo; services inflation likewise stuck at around 6%; and wages rising mostly for the highest paid 10% of the labor force (and for some at the bottom as minimum wages laws take effect) leaving the ‘great middle’ behind. Dr. Rasmus argues the truth is in the details, not aggregate averages, and shows most of the jobs created last 3 months were 520,000 part time, low paid, service work, of which 321,000 were 2nd and 3rd jobs, low paid, with few benefits. At the same time, 311,000 full time jobs have disappeared since April. Similarly since April, services inflation (80% of economy) remains ‘stuck’ at around 6% while wage gains continue to be ‘skewed’ to the top 10% and bottom extremes of the labor force. Bidenomics is thus bypassing the middle class! Rasmus further predicts the Fed will continue to raise interest rates, the US economy slow, US$ rise and exports fall, bank lending continue to decline, housing and manufacturing continue to contract, and consumer spending will slow sharply in 4th quarter and beyond.