Federal Reserve confirms that Biden’s unemployment extension hurts economic recovery

Democrats, including President Joe Biden and his administration, have worked overtime to spin the idea that an extension of federal unemployment benefits has stymied economic growth as the COVID-19 pandemic winds down, though any small business owner or observant American can truthfully say otherwise.

According to The Daily Wire, the Biden administration was hit directly in its face with a bucket of eggs this week as the Federal Reserve concluded in its semiannual report to Congress that Biden’s federal unemployment benefits extension is, in fact, hindering economic progress, given the millions of former workers who purposely remain unemployed and collect government checks.

The report tells all

In the 75-page report, which seems to counter the Democrats’ and mainstream media’s narrative that employers are struggling to find workers because some might be “afraid” of returning over COVID-19 concerns, it was clearly stated that Biden’s unemployment extensions are a heavily contributing factor.

“With economic activity rebounding, labor demand rose briskly in the spring, while the supply of labor struggled to keep up,” the report read.

It added: “Employers reported widespread hiring difficulties, job openings jumped to about 30 percent above the average level for 2019, and the ratio of job openings to job seekers surged… enhanced unemployment benefits have allowed potential workers to be more selective and reduce the intensity of their job search.”

The report went on to continue to explain that low-wage workers stand to reap the most benefits from Biden’s federal unemployment extension. While it didn’t specify why, it’s likely because those workers are literally making more money on a weekly basis by not working than putting in a full, 40-hour workweek.

The federal unemployment benefits extension is currently set to continue until early September in states that haven’t opted out of such benefits, which is a major cause for concern for small businesses that are attempting to resume normal operations.

There might be hope

Though critics argue that September is far too long to keep the unemployment benefits going, according to Business Insider, Biden has signaled recently that he believes it “makes sense” to let them expire in September.

“A temporary boost in unemployment benefits that we enacted helped people who lost their jobs through no fault of their own, and who still may be in the process of getting vaccinated,” Biden said in June. “But it’s going to expire in 90 days — it makes sense it expires in 90 days.”

National Economic Council director Brian Deese agreed with the president, adding: “As the president said, that’s appropriate.”

At least 25 Republican-led states have already signed orders in which they opted out of the unemployment benefits extension, arguing that the long, drawn-out period of free government money has wrecked local economies.

What will be most amazing to watch, which likely won’t be covered by most of the mainstream media, is how quickly all of the states that continue the benefits until September will recover and get back to normal, as millions of government freeloaders frantically fill available positions.

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