I have noted as the unemployment continues to drop, this is the Trump recovery continuing. https://cnbc.com/2021/07/19/its-official-the-covid-recession-lasted-just-two-months-the-shortest-in-us-history.html… as you can see here, the recession ended before summer of 2020.
Unemployment went from 14.4 in April to 6.7 percent in December with an average of 1.5 million jobs returning to job force. From January 2021 to the present, the unemployment dropped from 6.3 to 4.2 percent. From January of 2021, we have seen 500,000 plus jobs returning.
third quarter growth 2020 33% followed by 4%, in the fourth quarter followed by 6% in First quarter 2021, 6% in the second quarter, 2% in the third quarter. As you can see, this recovery began in the Trump administration.
There are issues with the recovery as we have seen many workers losing ground they gained in the first three years of the Trump administration. We are now seeing inflation which is wiping out wage gains.
Inflation is a Fed responsibility as monetary policy has increased over the past two years and with no growth oriented policies to increase economic growth, we have less goods to buy with all this extra money out there.
Energy prices are strictly the result of Biden’s own plan that reduced our own production while OPEC has basically given the Biden’s administration the middle finger on increasing their production.
As mentioned in the past, this is a Republican job creation recovery as Republican states have unemployment rates 30% lower than Democratic states. The question will inflation turn to stagflation or worse with recessions around the corner?