One of the strategies implemented by the US government to keep the national economy afloat due to the Covid pandemic – 19, both in the management of the Former President Donald Trump, like the present one, headed by Joe Biden, had to do with the distribution of the stimuli that have been promoted, but soon the federal aid will practically be extinct , so the economic direction will be determined by the labor force .
Jack Kleinhenz, economist at the National Retail Federation (NRF), stated in an NFR publication that Child Tax Credit and stimulus checks have helped boost consumer spending so far this year, but the next stage of economic growth will depend more on job creation throughout the country .
According to the expert, the reason why growth will depend on strength labor, has to do with the reopening of the economy in practically all productive sectors , in this sense, as it continues to expand, “federal aid will be reduced and there will be a focus on capacity of the labor market to generate strength in wages to support spending. ”
Lo exposed by Jack Kleinhenz are not said on the air, because since the economic reopening began throughout the country, a large number of companies, as well as government agencies announced that they would provide their employees with improved compensation. In most cases the minimum wage paid is $ 15 dollars per hour .
Situation that makes the working class have the purchasing power necessary to be able to consume . For this reason, Kleinhenz detailed in his analysis that “American consumers continue to be willing to spend, but the labor market and job creation will play an increasingly important role in their ability to do so.”
Despite the fact that the expert states that job creation will be the engine for the consolidation of the economy after the strong impact it has had as a result of the Covid pandemic – 19, the progress in hiring has been slow, as millions of vacancies that are offered in different industries have not yet been filled .
Perhaps, this trend will soon be reversed, since on September 6 the federal unemployment benefits approved by the Biden administration expire so that millions of Americans will not be left without an economic livelihood due to unemployment. Federal support has awarded $ 300 dollars per week to recipients. And with the cancellation of benefits must return to jobs .
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