Economist Jerry Bowyer Discusses the Economy, Jobs, Infrastructure, Inflation, Interest Rates, Taxes | Schaftlein Report

Economist Jerry Bowyer Discusses the Economy, Jobs, Infrastructure, Inflation, Interest Rates, Taxes | Schaftlein Report
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Guest: Jerry Bowyer – Economist, Journalist, Author of multiple books including The Maker Versus the Takers, Founder of the Allegheny Institute
Topics:
1) The Jobs Market Heats up – Unemployment falls to 5.8% which is the lowest since March 2020 – 559K Job created in May
Production wages grew at 9% annual basis for April and May – Hospitality wages up 17%
Many parts of the country are experiencing unemployment rates at or below – 3%, yet we have 7.6M fewer jobs than February 2020
There are 9.2M Job Openings in the US
Average earnings are at $30.33 per hour
What is the effect of generous Unemployment benefits having on the labor market, specifically the extra $300 per week from the Federal Govt
US ISM MFG Production Index is at 61.2 not too far from an all time high?
2) Biden’s Infrastructure Plan if approved by Congress faces many hurdles and problems few politicians are talking about
Problem 1 – There are fewer workers to fill jobs
Problem 2 – We have a shortage of Cement Mills, Steel, Lumber (30% has to come from Canada), Aluminum for appliances – Copper for wiring and cement foundations – This may crowd out housing
Problem 3 – US producers are already overbooked on orders
3) Inflation is currently running in the range of 3-4% – Is it transitory or baked into the system – The FED says it is transitory?
4) Why is the 10 year note still in a range of 1.5% to 1.6% with all of the Government spending and the Fed buying $150B of bonds per month?
5) What are the implications of the proposed Global minimum corporate Tax of 15% being pushed by Sec. Yellen and other Finance Ministers? What are the chances of that becoming law?
6) Small Businesses are worried about the tight labor market and Inflation