It’s Labor Day weekend – and the news is bad.  The numbers have just been released:  employers added just 235,000 jobs in August, sharply missing expectations for a gain of 728,000.  Do the math:  less than one third new jobs were created than expected.

The Economy is not recovering as quickly as was expected or hoped.  What is holding it back?

That revelation comes on the heels of two other factors revealed on August 31st which make it clear that inflation will be with us for some time.

First – Housing prices are up, at an annualized rate of 19.1 percent – the biggest jump since recordkeeping began in 1987.

Second – The expectation by consumers is that the coming year’s inflation rate will be 6.8% – a huge increase.  People believe inflation will affect their personal well-being.

This puts the lie to those saying that any inflation will be short-lived.  The increase in housing prices is not yet showing up in the calculated inflation rates.  Housing costs count for 40% of the Consumer Price Index.  When it does finally show up in the CPI, expect shockwaves.

A few days ago, Fed Chair Powell tried to downplay inflation.  President Biden made similar comments.  But, as noted here in August, Biden and Congress are spending more money than is being taken in through taxes.  They are diluting the value of the dollar.

By definition, that is the cause of inflation.  Nothing else can do it.  Dilute the dollar, and it takes more dollars to buy whatever it is on your shopping list.

The Spendocrats – the Democrats and some Republicans – somehow believe that government spending and actions – like giving free money to the unemployed – can occur without harming the economy.  

President Biden and Congress are creating a huge problem for Americans.

They still think the economy is something they can shape and manipulate to their own ends.  They think government spending can stay outside the economy, and not affect it.  They still fail to realize that the Economy is not a monolithic object.  

That is why the Founding Fathers gave this country the definition it has – freedom bulwarked by the U.S. Constitution – the best organization they could construct, to protect that freedom and each individual American’s right to life, liberty, and the pursuit of their own happiness.  

The Economy is an ocean – a composite sum – of the efforts of each and every individual human being alive, trying to make the best of his own life – of his pursuit of happiness.  

“The Pursuit of Happiness” – it’s a polite way of saying, “It’s the Economy, Stupid.”■