Optimism: Picture of economy too rosy for belief
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When the Biden administration issued an economic memo Tuesday, there was a hint of "pay no attention to the man behind the curtain" in its excessively optimistic language. It all but says the administration is choosing not to focus on the problems our economy is facing, but rather to pretend all is well.
The administration is "focused on an economic strategy of containing the virus and growing the economy from the bottom-up and middle-out. Data suggest that this strategy is working," said the note from Brian Deese, director of the White House National Economic Council, and Cecilia Rouse, chair of the Council of Economic Advisers.
Perhaps the hand-picked data used for the report suggests as much, but April's reports were less than stellar. Consumer prices are increasing and hiring has not exactly skyrocketed. There are supply bottlenecks, gas prices are rising and there is a shortage of home listings.
Despite those warning signs, the Biden administration's memo suggests "our economy is likely to largely heal by the end of the year."
Among its goals on the way to such healing is to push up wages for workers, and therefore encourage people to seek jobs.
"In some cases, employers will raise wages to attract workers," the memo said. "This is a positive development, particularly for lower wage workers who have seen little wage growth over the past decades."
One has to wonder which employers are expected to raise wages in such a manner right now, given the razor-thin margins on which some are operating.
A little less false optimism and a little more facing of hard reality is needed if the Biden administration is to accomplish the goals it has set forth. Asking Americans to believe the economy in which so many are still struggling is all sunshine and roses is a poor way to solve the real world problems we are facing.