Joe Biden’s administration is continuing to struggle with several aspects of the economy. For one, there’s a major worker shortage, likely indicating that the unemployment benefits that have been granted as a part of the ‘American Rescue Plan’ stimulus package are holding back workers from attempting to find work.
This is one reason that many Republican governors have opted to shorten the amount of time that individuals can remain on unemployment with the next extended benefits program that was originally supposed to last until September.
In addition to the worker shortage, the stock market appears to be stalling out and that could create a lot of trouble for investors on wall street in the near future. A significant increase in the corporate tax rate may also harm various aspects of the economy, as proposed by Democrats in the multi-trillion dollar infrastructure bill.
When you mix all of these factors up and combine them, it’s potentially a recipe for disaster after building up a strong economy over the course of the last four years. With Trump in office, stock markets reached all-time highs and job numbers were impressive, but threats of using tariffs had hurt the economy at times as well. While Trump threatened tariffs against China, Biden threatened a corporate tax rate increase that will hurt many businesses.