President Joe Biden has proposed substantial spending increases he says will transform the economy, but a pair of recent disappointing jobs reports have some analysts wondering whether these investments will really pay off.
Biden has already signed a $1.9 trillion spending bill he called the “American Rescue” plan into law and has jobs, infrastructure, childcare, and social welfare plans waiting in the wings that will total $4 trillion. His first budget blueprint clocks in at $6 trillion and runs a $1.8 trillion deficit in a single year.
Monthly job creation fell short of economists’ and Wall Street’s expectations in both April and May. March’s numbers were also revised downward from 960,000 to 770,000. One analyst called April’s numbers, in which only 266,000 jobs were added despite hopes the number would exceed 1 million, “the most disappointing jobs report of all time.” May was better, and the unemployment rate fell, but it was not close to 1 million