These are the prime suspects:
1) calling for far too much spending at a time when the economy is heating up - maybe overheating - from the SnapBack effect after lockdowns plus all the spending since the pandemic began. That would most prominently show up in current inflations trends continuing or increasing; and
2) also related to too much spending - too much in unemployment benefits being thrown around too indiscriminately, preventing people from filling certain jobs they otherwise would, which puts a drag on the economy and/or further pressure on wages, feeding inflationary trends in 1) above. That fear intensified with last month’s disappointing jobs report, and this month may indicate whether that is a trend.
Those are what I see as the biggest current risks to perceptions of Joe’s handling of the economy.
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In response to this post by 111Balz)
Posted: 05/17/2021 at 09:25AM