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11 8

LINK Mitch McConnell Says Labor Shortage Will End When People Run Out of Stimulus Money

For over a year, lawmakers and businesses have been bemoaning how hard it is to find workers.

Senate Minority Leader Mitch McConnell offered his own labor-shortage theory at an event in Paducah, Kentucky, on Tuesday.

"You've got a whole lot of people sitting on the sidelines because, frankly, they're flush for the moment," the Kentucky Republican said. "What we've got to hope is once they run out of money, they'll start concluding it's better to work than not to work."

Many Americans were able to build their savings during the pandemic, thanks to several federal rescue packages. Moody's Analytics estimates that households built up an extra cash cushion totaling $2.6 trillion from the beginning of the pandemic through the end of 2021.

McConnell opposed President Joe Biden's stimulus law, which passed with only Democratic votes in March 2021 after two previous rescue packages approved by the Trump administration. Republicans have long blamed that $1,400 direct payment to Americans for worsening inflation and helping keep people out of the workforce.

Economists have identified a multitude of reasons for the labor shortage: People moved away from locations with open positions; parents haven't been able to return to work as they deal with ongoing pandemic uncertainty; and the open roles might not be the right fit — in terms of skills or pay — for people looking to switch jobs.

These reasons suggest possible solutions other than McConnell's plan to wait out savings. Businesses could offer higher wages and more flexible workplaces, and even tweak job descriptions and requirements to attract a larger pool of potential employees.

In the meantime, the labor market has seen a robust recovery, with jobs set to fully recover by this summer. The employment-population ratio for Americans ages 25 to 54 — considered prime age for employment — has crept above July 2019 levels, according to data from the St. Louis Federal Reserve. Unemployment sits at a historic low of 3.6%.

Over the past two years, Americans have been quitting jobs at near-record rates, but hiring and job openings remain strong. That indicates that many people are quitting for higher-paying jobs, especially in low-wage industries and the service sector — which seems to have struggled the most to hire and retain workers.

Kentucky, McConnell's home state, was briefly the epicenter of the Great Resignation. The sheer number of workers quitting and leaving the workforce was powered by structural conditions that existed long before the pandemic and were exacerbated by COVID-19. That includes lack of affordable childcare, a low minimum wage, and worries over safety during a still-raging pandemic.

Moody's said in June that Americans had begun to draw down their savings with prices rising at their fastest pace in four decades.

HippieChick58 9 July 8
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11 comments

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2

Received a message from a group I belong, NPG. It talked about Japan and how the drop in population has been good for the country. The average home costs less than in the US and more are becoming available without having to build. It also showed that energy usage has actually increased due to the replacing of workers with robots. Japan leads the world in technology and robotics.

What happened to the displaced workers?

@Charlene The point was with a negative population growth there weren't any. Corporations make out it would be a horrible fiasco if our population started dropping. Countries, like Japan, show it is simply not true. Besides, some workers may have been displaced but then they got a raise to program the robots.

3

What is a savings account?

Is that a serious question?

@HippieChick58 Hope not. Besides, with the fed finally coming to their senses interests rates are going up so savers should be better off. I know I am (just stay away from Wells Fargo).

@JackPedigo After the scandal with WF a few years ago, I'm surprised they are still so popular, but they're a hella big bank. My employer had a special interest rate on Certifs of Deposit over the 4th of July, and OMG were we busy! Yes, there is a focus on savings now, I have even opened up my own CDs. My job has been wonderful financial education for me. Yeah, I'm staying away from WF. I do my own business with two banks, and now lots of Credit Unions.

@HippieChick58 Unfortunately, I have never made enough for a savings account of any amount. I once had a retirement account but the 2000 recession took care of that. I had bad investing advice and was not paying attention. I am now in a batter situation, or I will be shortly. I have not been working as I am taking care of Kate, she has Necrobiotic Xanthroloma, probably one of a hundred people on the planet have this. It is very painful and debilitating. My job awaits as soon as Kate can be left alone again.

@dalefvictor I work for a credit union, membership in a credit union is a savings account with a minimum deposit of $5. It does draw interest, but not much. I was not sure if you were being facetious or really didn't know what a savings account is. I am sorry for your troubles, hope things get better soon.

@HippieChick58 LOL really!? I do my own taxes and looking over the interest statements for three banks, one is local - Banner Bank and one is the Boeing Credit Union. Wells Fargo was my 2nd largest account. A CD with the Banner Bank yielded over $800 and the Cu was some $1,200. Wells Fargo (for a 70K CD) yielded just over $14. It seems all the accounts, savings, checking and CD's all had the same interest .02%. Also, one had to actually cash out the CD in order to quit. I could not roll it over and literally had to drive to Bellingham (an hour away not counting the ferry. A local bank on San Juan Island was closed). I was told Wells Fargo is making so much money (for the top people) they didn't need to make special deals with their clients.

I did cash out the money and put it in the CU. Interest rates are climbing and when they get a little higher I will put it in a CD from a financial institution that seems to care about it's clients. Wells Fargo has now become my working bank with a lot small portfolio than before.
The BECU has a CD with 0.8%. A lot better than 0.02%

@HippieChick58 Things will get better. Actually, they are not that bad now, I chose not to see it that way. Kate may be dying. but I share the joy we have together and take it day by day. I am trying t get a reverse mortgage on our house, that would help a lot, as the top two floors are rented out and we have the income from that as well as our SSI.

2

Moscow Mitch has no real idea about anything. What surplus, taking the economy back into another recession is not going to help him. Why can't he slip on a bar of soap?

2

Yup..fuck McCornhole and his Rethugs..

3

Asshole wants slaves

bobwjr Level 10 July 8, 2022

Yes, and I think they should start by taking their supporters for this first. I am sure they are the smartest and sharpest people available.

3

McConnell is a brain dead sociopath, with no desire to do anything besides leave his heirs a fortune of graft money he has been syphoning out of the government for decades.

2

Given who ad what McConnell is, that is exactly what you would expect him to say.

2

Sadly many people who have run out of that stuff still think he's right.

6

Who the fuck still has stimulus money?! Wasn't the last check over a year ago?

8

Says the man who has done everything in hi power to destroy democracy in the United States. Moscow mitch is a very dangerous elected official - sadly one of many.

7

Mitch apparently thinks dollars go as far today as they did in 1928...........

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