If the business executives Joe Biden met with Monday are an indication of the kind of advice he’s seeking out on the economy, the country is in for trouble.
At Monday’s briefing, Biden was practically giddy about a meeting he’d had earlier in the day with CEOs at four big companies – Microsoft, The Gap, Target, and General Motors – along with five union bosses.
“It was really encouraging, quite frankly,” he said, to get “business and labor agreeing on the way forward.”
“I wish you could have all heard the conversation.”
Why these companies? Biden didn’t say. But if he wanted advice on how to grow the economy and create jobs, he picked a sorry lot to get it from.
The Gap closed 230 of its stores last year. GM’s sales have been steadily declining since 2016. Target’s annual revenue growth has been more or less flat since 2013. Microsoft’s glory days are well in the past.
As far as jobs go, the four companies had a combined loss of 10,000 jobs from 2015 to 2019 – years overall job growth topped 8% – according to data from Macrotrends. Only Microsoft created a significant number of new jobs over those years.
Biden’s choice of economic experts isn’t any more reassuring.
At the same briefing, Biden boasted that he has “laid out a plan that an independent analysis put up by Moody’s – a well-respected Wall Street firm – projected would create 18.6 million jobs.”
Actually, what Moody’s said is that if the economy were left on autopilot, it would create 11.8 million jobs over the next four years. The report claimed that Biden’s economic plans would add 6.8 million jobs on top of that.
But that number is bogus. The Moody’s report Biden referred to was compiled by Mark Zandi, a leftist economist with a horrible track record.
It was the same Mark Zandi who predicted that if Donald Trump won the 2016 election he’d cause a lengthy recession with “a lot of lost jobs, higher unemployment, higher interest rates, lower stock prices.”
Zandi predicted that in Trump’s first term the unemployment rate would be 5.7% in 2019, and climbing. Actual result: Unemployment was 3.5% at the end of 2019, and falling.
He said there’d be 146 million jobs in 2019. Actual result: 152 million.
Zandi said the economy would eke out just 2.8% real GDP growth from 2016 through 2019. Actual number: 7.7%.
He said the S&P 500 would drop 18% in Trump’s first three years. It climbed 40%.
It’s worth noting that Zandi’s latest forecast is already way off when it comes to jobs. In his September 2020 report, he said the unemployment rate for this year would be 9.1%, falling only to 8.3% for 2021.
The unemployment rate is already down to 6.9%.
Of course, Biden himself has a lousy record when predicting the impact of his favored policies on jobs. Back in 2010, for example, he boldly predicted a “summer of recovery” because much of the Obama-Biden stimulus money was set to be spent.
That summer, the economy shed 293,000 jobs.
Meanwhile, other analyses of Biden’s tax and regulatory plans show massive job losses.
The Green New Deal, which Biden has embraced despite his claims to the contrary, would cost 1.4 million jobs, according to a Heritage Foundation analysis.
An analysis by economists at Miami University and Trinity University found that Biden’s national $15 minimum wage would cost 2 million jobs by 2027.
Another study by the Hoover Institution found that Biden’s tax and regulatory agenda would kill 4.9 million jobs.
If Biden wants to create jobs, he might try listening to business owners who’ve been creating them over the past four years. Of course, those people would tell Biden to stick with Trump’s economic policies.
— Written by the I&I Editorial Board