Millions of workers are sitting on the sidelines of the labor force
Prices are rising for kitchen-table items
Dining, retail, and entertainment businesses are limiting hours and services
Small businesses are struggling to meet growing demand for their products and services
For consumers this means higher prices, more pressure on household budgets, longer lines and wait times, more frustration, and limited supplies—even rationing—of household staples from chlorine to Chick-fil-A sauce.
Right now, excessive government aid is hampering the economic rebound.
Between federal stimulus payments, the pandemic unemployment benefit bonus, and extending unemployment benefits longer and to more workers, Washington has created a massive incentive for workers NOT to work.
To be clear, Americans are not lazy but, rather, responding to incentives. They have done the math. When one could receive as much as 145% of what she or he would normally earn in unemployment benefits... why work?
In April, there were 9 million unfilled jobs—the highest level ever. Yet, half as many workers are available for these open jobs. Chambers of commerce across the country indicate that this worker shortage hampers businesses’ abilities to operate at full speed. In addition, this shortage is disrupting our supply chain, spiking prices on food and household goods.
Industry-wide, fast food restaurants are closing early or entire days, or limiting service to drive-thrus, even as they offer higher hourly rates, bonuses, and incentives to attract new employees.
Food suppliers, facing difficulty hiring workers, cannot produce enough ketchup, Chick-fil-A sauce, or chickens for those Popeyes sandwiches fast enough and are charging higher prices.
The bottom line: Washington’s policies are backfiring.