The U.S. Weak Employment Report raises tensions ahead of talks on new spending

A Weak US jobs report political tensions have escalated ahead of bilateral talks between the White House and lawmakers over Joe Biden’s next multi-billion dollar economic plans, making the path to the deal even more difficult.

After publishing data showing Friday that the pace of hiring in the U.S. economy dropped from 770,000 in March to 226,000 in April to 2270,000, Biden asked Congress to pass additional economic legislation that already approved the $ 1.9 million fiscal stimulus.

He asked lawmakers to propose $ 2.3 million in infrastructure spending and $ 1.8 million in security spending on social media in a decade, paid for by higher taxes on the rich and corporations.

Next Wednesday Biden He will hold a conference in the White House with the heads of four congresses — Nancy Pelosi, a House spokeswoman, Senate Majority Leader Chuck Schumer, and Republicans Mitch McConnell and Kevin McCarthy — in the White House to begin talks.

“No one should underestimate how hard this fight is,” he said. “We still have work here in Washington. The people of America are telling us. So let’s do it. Let’s build an economy that will give dignity and give everyone a chance. ”

But while Democrats stress the importance of additional actions to strengthen the recovery, Republicans have called on the administration to change course and make adjustments in its economic strategy.

“I think [the jobs data] each side has increased as a confirmation of the position they already held. Democrats see the risk of a halt, the crisis in child care and the fear of catching the virus at work are keeping people away and there is little chance of warming up, “said Austan Goolsbee, a professor at the University of Chicago and a former senior Obama administration official. against government involvement “.

McCarthy, a senior Republican in the House of Representatives, gave a harsh statement saying Biden was “not resolving the crisis, creating new ones.”

“Unless President Biden fails to double the failed tax and spending agenda unless he works with Republicans to rebuild our economy, crisis-ridden policies will continue to trap Americans in a cycle of fear,” he added.

Many economists who were surprised by the slowdown in job creation say they expect the fall to be temporary, and that the strong expansion of U.S. vaccines will boost the recovery in the coming months combined with strong spending on the previous stimulus.

Speaking at the White House on Friday, Janet YellenThe U.S. Treasury Secretary said America expects to get full employment next year, though he acknowledged that the recovery could be “uneven.”

It is likely that Democrats and the White House will help their next spending plans address major structural problems that have plagued the U.S. economy in the past, including employee participation. These include deficits in physical infrastructure, childcare and education.

Slow numbers may help to explain concerns about the rise in excessive inflation. “I think very few people have those concerns. And I think a lot of data has been advanced about that, ”said Michael Madowitz, an economist at the Center for American Progress, a left-wing think tank.

“The real silver lining of this is that Pollyannish is” oh my god warming up the economy “that people are ridiculous right now.”

But Republicans and Conservatives say this should serve as a warning sign to the White House that its policies are too focused on boosting labor market demand and not supply.

“They have to have an economic message that fits a little more than they spend, spend, spend,” says Doug Holtz-Eakin, a former economics consultant at George W Bush, now an American Action Forum, think-tank. “To move this package forward, they need to explain how people will get to work, and make them more productive at work.”

If no agreement is reached with Republicans, the White House and Democrats can override their plans using a slim majority on Capitol Hill, but a high level of party unity that could be difficult to achieve would be needed.

“The evidence is clear that the economy requires urgent action and that Congress will not prevent or delay investments to transform the people,” Pelosi said.