"FOX BUSINESS TONIGHT." ♪ ♪ JER OUR TOP STORY, THE U.S. ECONOMY HAS BOUNCED BACK FROM THE COVID-19 PANDEMIC FASTER THAN MOST COUNTRIES THANKS MAINLY TO AN ACCELERATESSED VACCINE ROLLOUT AND INJECTIONS OF SUPPORT FROM THE FEDERAL GOVERNMENT. RECOVERY HAS LOOKED MUCH MORE V-SHAPED THAN EVEN THE MOST OPTIMISTIC FORECASTERS THOUGHT LIKELY A YEAR AGO. TODAY WE GOT THE FIRST REALLY UNSETTLING NEWS THAT SOME OF THE STEAM MAY NOW BE GOING OUT OF THE RECOVERY. THE LABOR DEPARTMENT SAID NONFARM PAYROLLS INCREASED BY JUST 266,000 IN APRIL. THAT'S BARELY HALF THE AVERAGE MONTHLY GROWTH RATE IN THE FIRST THREE MONTHS OF THE YEAR AND WAY BELOW WHAT WAS EXPECTED BY MOST ECONOMISTS. THE UNEMPLOYMENT RATE, WHICH HAD BEEN FALLING STEADILY SINCE IT HIT A PEAK A YEAR AGO, EDGED BACK UP IN APRIL FROM 6 TO 6.1%. NOW, SOMETHING UNUSUAL IS GOING ON. EVEN AS UNEMPLOYMENT HAS EDGED UP AND REMAINS MUCH HIGHER THAN IT WAS BEFORE THE PANDEMIC HIT, EMPLOYERS ARE HAVING A REALLY HARD TIME FILLING JOB WITH VACANCIES. WE'VE HEARD ALREADY ON THE SHOW THIS WEEK EXAMPLES OF BUSINESSES SAYING THEY'RE ALMOST DESPERATE TO FIND WORKERS, OFFERING HIRING BONUSES AND OTHER BENEFITS, AND LATER TONIGHT IN THE SHOW WE'LL BE HEARING FROM A RESTAURANT GROUP THAT'S EVEN OFFERING TO PAY COLLEGE TUITION TO ENTICE WORKERS. AND ALL OF THIS IS REFLECTED IN THE FACT THAT WAGES ARE RISING STRONGLY. THE ONE MONTH RISE IN APRIL WAS MUCH FASTER THAN HAD BEEN EXPECTED. SO WE'RE IN A STRANGE POSITION. THE ECONOMY'S RECOVERING, EMPLOYERS ARE LOOKING TO FILL VACANCIES, BUT THEY CAN'T SEEM TO ATTRACT MILLIONS OF PEOPLE TO WORK BECAUSE THE NUMBER OF JOBS IN THE ECONOMY IS STILL 8 MILLION BELOW WHERE IT WAS A YEAR AGO. NOW, OF COURSE, PRESIDENT JOE BIDEN WANTS YOU TO BELIEVE THIS IS ALL GOOD REASON TO SUPPORT HIS PLANS TO SPEND TRILLIONS OF FEDERAL DOLLARS TO GOOSE THE ECONOMY. BUT IF ANYTHING, THE TRUTH MIGHT BE THE EXACT OPPOSITE. FEDERAL SPENDING, SUCH AS THE LATEST ROUND OF STILL PLUS CHECKS AND ADDITIONAL UNEMPLOYMENT SUPPORT OF $300 A WEEK IN ADDITION TO THE STATE UNEMPLOYMENT BENEFITS THAT PEOPLE GET, IS SURELY ADDING DEMAND TO THE ECONOMY AS PEOPLE SPEND IT PERHAPS ON NEW GADGETS, OR THOUGH PERHAPS SOME IS GOING ON BITCOIN OR OTHER INVESTMENTS. IT'S INCREASING DEMAND, BUT IT'S NOT INCREASING SUPPLY. IN FACT, BY ENCOURAGING PEOPLE TO STAY AT HOME RATHER THAN FIND A JOB, IT'S ACTUALLY RES DEUCING LABOR SUPPLY. A LOT OF AMERICANS ARE GETTING MORE IN STILL THE PLUS MONEY, TAX REFUNDS AND UNEMPLOYMENT BENEFITS RIGHT NOW THAN THEY'D BE EARNING IN A JOB. IT'S NO WONDER EMPLOYERS CAN'T PERSUADE THEM TO COME TO WORK. DEMOCRATS, OF COURSE, CLAIM THEIR NEXT ROUND OF BIG SPENDING WILL IMPROVE THE NATION'S INFRASTRUCTURE AND EXPAND THE ECONOMY'S CAPACITY. BUT IF YOU LOOK AT THE DETAILS, YOU CAN SEE MOST OF THIS SPENDING IS NOT INFRASTRUCTURE SPENDING AT ALL. IT'S YET MORE GOVERNMENT LARGESS AND PAYOFFS TO LABOR UNIONS. THE BIDEN SPENDING PERSONAL INJURY MAY -- BEIGE MAY, IN FACT, PROVE TO BE THE MOST ILL-TIMED FISCAL POLICY IN DECADES. LET'S GO TO BLAKE BURMAN AT THE WHITE HOUSE. >> REPORTER: HI THERE, GERRY, GOOD EVENING. THE WHITE HOUSE IS MAKING A TWOFOLD ARGUMENT. FIRST OFF, THEY'RE SAYING DON'T NECESSARILY LOOK AT JUST ONE MONTH, THAT'S ONE DATA POINT, THEY SAY. INSTEAD, THEY'RE POINTING TO THE PAST THREE-MONTH STRETCH, THE FIST THREE MONTHS OF THE BIDEN ADMINISTRATION, IN WHICH THERE HAS BEEN AN AVERAGE OF MORE THAN 500,000 JOBS CREATED MONTHLY. THEY'RE ALSO SAYING BECAUSE THERE HAVE BEEN CONTINUED JOB GAINS, THEY BELIEVE IT SHOWS THE AMERICAN RESCUE PLAN IS WORKING, AND TODAY THE PRESIDENT CONTINUED HIS PUSH FOR MORE SPENDING. >> THE AMERICAN RESCUE PLAN IS JUST THAT, A RESCUE PLAN. IT'S TO GET US BACK TO WHERE WE WERE. BUT THAT'S NOT NEARLY ENOUGH. WE HAVE TO BUILD BACK BETTER. THAT'S WHY WE NEED THE AMERICAN JOBS PLAN I PROPOSED. >> Reporter: BUT THE WHITE HOUSE HAS ALSO BEEN FACING QUESTIONS TODAY ABOUT WHETHER THE WEEKLY $300 FEDERAL UNEMPLOYMENT PLUS-UP IS ACTUALLY A HINDRANCE TO GROWTH IN THIS COUNTRY RIGHT NOW. THE U.S. CHAMBER OF COMMERCE CAME OUT TODAY AND SAID THEY FEEL THAT $300 GOVERNMENT BENEFIT SHOULD BE SCRAPPED. HERE'S WHAT THEY SAID IN PART IN A STATEMENT. QUOTE: THIS DISAPPOINTING JOBS REPORT MAKES IT CLEAR THAT PAYING PEOPLE NOT TO WORK IS DAMPENING A STRONGER JOBS MARKET. THE VERY REAL THREAT OF UNFILLED POSITIONS POSE TO OUR ECONOMIC RECOVERY FROM THE PANDEMIC. PRESIDENT BIDEN WAS ASKED ABOUT THIS TODAY, HE SAID HE DOES NOT THINK THE FEDERAL PLUS-UP HAS A MEASURABLE IMPACT ON WHAT IS HAPPENING. HERE WAS THE TREASURY SECRETARY, JANET YELLEN, AS WELL WHEN SHE WAS ASKED ABOUT IT. >> STARTING UP THE ECONOMY AGAIN, TRYING TO GET IT BACK ON TRACK AFTER A PANDEMIC IN WHICH THERE WERE A LOT OF SUPPLY BOTTLENECKS IS GOING TO BE, I THINK, A BUMPY PROCESS. BUT I REALLY DON'T THINK THE MAJOR FACTOR IS THE EXTRA UNEMPLOYMENT. >> Reporter: ACCORDING TO THE LABOR DEPARTMENT, OF THOSE WHO SAID THEY ARE UNEMPLOYED, 43% SAY THEY HAVE BEEN UNEMPLOYED FOR AT LEAST 27 WEEKS. GERRY? GERRY: THANKS VERY MUCH. WELL, JOINING ME NOW IS STEVE FORBES, "FORBES" MEDIA CHAIRMAN. STEVE, THANKS FOR BEING HERE. >> GOOD TO BE HERE, THANK YOU. GERRY: SO THE PRESIDENT SAYS, PERHAPS UNSURPRISINGLY, THAT THE DISAPPOINTING, WEAKER JOBS GROWTH WE SAW IN APRIL, IT'S ALL GOOD JUSTIFICATION FOR SPENDING EVEN MORE MONEY ON THE ECONOMY. WHAT DO YOU THINK? >> JUST THE OPPOSITE. THE TWO BIG OBSTACLES ARE, AND YOU'VE TOUCHED ON THEM, ONE OF THOSE DOING THE UNEMPLOYMENT BENEFITS. THE GOVERNOR OF MONTANA HAS SAID THE STATE'S NOT GOING TO TAKE ANY MORE OF THOSE COME JUNE. WHEN THEY EXPIRE IN SEPTEMBER, YOU'RE GOING TO FIND A LOT OF DEMOCRATS ARE NOT GOING TO VOTE TO RENEW BECAUSE OF LABOR SHORTAGES. THE OTHER THING IS GOING TO BE BEARING MORE AND MORE ON THE ECONOMY. IF THE PRESIDENT HAS ANYING SUCCESS WITH THESE SPENDING BINGE PLANS HE HAS AND MASSIVE INCREASES IN TAXES. IF THEY DID NOTHING, THIS ECONOMY WOULD BE ROARING AHEAD. JOBS WOULD BE FILLED AND, ULTIMATELY, THOSE WHO WERE COLLECTING UNEMPLOYMENT BENEFITS WOULD END UP WITH MORE AS THE ECONOMY PICKS UP STEAM. AND THEY GET REAL RAISES, NOT ARTIFICIAL ONES FROM THE GOVERNMENT. GERRY: WHAT DO YOU MAKE OF JANET YELLEN'S EXPLANATION, THE RESTARTING ECONOMY AFTER IT'S BEEN SHUT DOWN LIKE THIS, BUSINESSES, YOU KNOW, ESPECIALLY BUSINESSES THAT WERE CLOSED, THEY DON'T QUICKLY REHIRE. THEY CAN'T, THEY HAVE TO GO THROUGH ALL KINDS OF OBSTACLES, RAISING MONEY, MAYBE REGULATIONS, AND THAT EXPLAINS THE SLOWDOWN IN EMPLOYMENT? >> THIS ECONOMY'S BEEN RECOVERING VERY NICELY AS THESE LOCKDOWNS HAVE BEEN EASED, SO THAT'S NONSENSE. AND THE FACT THAT SO MANY EMPLOYERS ARE BEGGING PEOPLE TO COME TO WORK SHOWS IT'S NOT BOTTLENECKS OR THESE OTHER ARTIFICIAL THINGS SHE'S TALKING ABOUT, IT'S THE FACT THAT GOVERNMENT IS PAYING PEOPLING NOT TO WORK -- PEOPLE NOT TO WORK, AND A LOT OF PEOPLE ARE DOING JUST THAT, NOT WORKING. AGAIN, THE GOVERNMENT IS THE OBSTACLE, NOT ANYTHING STRUCTURAL CHANGES IN THE AMERICAN ECONOMY OR RECOVERING FROM COVID. THE RECOVERY WOULD BE SWIFT IF THE GOVERNMENT GOT OUT OF THE WAY. GERRY: OTHER FACTORS MAY BE, AND IT'S CITED IN SOME SURVEYS, THE FACT THAT SCHOOLS ARE STILL NOT BACK TO THE FULL CLASS, KIDSING BEING BACK IN CLASSES, STILL A LOT OF VIRTUAL LEARNING BECAUSE TEACHERS UNIONS HAVE INSISTED ON KEEPING THEM OUT OF SCHOOL, ESSENTIALLY. THAT'S MAKING LIFE DIFFICULT FOR A LOT OF PARENTS WHO CAN'T REALLY WORK, ESPECIALLY IF THEY HAVE SMALLER CHILDREN AND THEY'RE AT HOME, AND I THINK THAT'S BEEN AFFECTING A LOT OF WOMEN IN PARTICULAR. OF THAT'S ANOTHER FACTOR WHICH, AGAIN, THANKS TO THE DEMOCRATIC, THE DEMOCRATIC-SUPPORTING TEACHERS UNIONS IS ACTUALLY HOLDING BACK RECOVERY. >> THAT'S RIGHT. AND THAT'S GOING TO REALLY IMPACT IN THE FALL IF WE HAVE THE PROSPECT THAT THE KIDS ARE GOING TO STILL BE HOME. AND THAT'S THE HUGE SCANDAL, AND I HOPE THE REPUBLICANS HAMMER ON IT MORE AND MORE THAN THEY HAVE. THERE'S NO SCIENTIFIC JUSTIFICATION WHATSOEVER FOR KEEPING THOSE KIDS OUT OF THE CLASSROOM. THAT'S BEEN EVIDENT FOR OVER A YEAR. THE EXPERIENCES IN EUROPE AND ASIA AND ELSEWHERE WITH HAVE SHOWN THAT PUTTING THE KIDS IN THE CLASSROOM DOES NOT CONTRIBUTE TO COVID. IN FACT, WHAT MAKES COVID WORSE IS HAVING THE KIDS HOME AND THE HEALTH EFFECTS THAT HAS ON FAMILY, ON THE KIDS, NOT ONLY THEIR DEVELOPMENT, BUT WHAT IT DOES IN TERMS OF STRESSES ON THE HOME FRONT BECAUSE PARENTS HAVE TO STAY HOME WHO OTHERWISE WOULD BE IN THE WORK FORCE. THAT ALL CONTRIBUTES TO A BAD PUBLIC HEALTH RESULT, AND THAT'S WHY, AGAIN, IF THE GOVERNMENT WOULD JUST GET OUT OF THE WAY AND LET THIS RECOVERY PROCEED AND GET THE UNIONS TO STOP BLACKMAILING THE DEMOCRATS BECAUSE THEY'RE ALMOST -- THE DEMOCRATS ALMOST LOOK LIKE THEY'RE A SUBSIDIARY OF THE TEACHERS UNIONS. IT'S RIDICULOUS. AND WHAT IT DOES TO YOUNG PEOPLE IS A TRUE MORAL SCANDAL. GERRY: JUST VERY BRIEFLY, STEVE, WE'VE SEEN EMPLOYERS OFFERING REALLY SIGNIFICANT WAGE INCREASES, BONUSES TRYING TO LURE WORKERS BACK, MAYBE TO OFFER THEM MORE THAN THEY'RE GETTING FROM THEIR UNEMPLOYMENT BENEFITS AND THEIR GOVERNMENT STIMULUS CHECKS. THAT'S PUSHING UP COSTS, AND EVERY CEO SAYS THEIR COSTS ARE RISING AND THAT THIS IS GOING TO HAVE AN EFFECT ON INFLATION. >> IT'S GOING TO HAVE AN EFFECT ON PRICES BECAUSE THIS HURTS PRODUCTIVITY. PEOPLE GETTING MORE WAGES, YOU GET THAT WITH PRODUCTIVITY. SO IT DOESN'T CONTRIBUTE TO INFLATION AND THINGS LIKE THAT. SO, AGAIN, GET THESE ARTIFICIAL BARRIERS OUT OF THE WAY AND THE AMERICAN PEOPLE WILL SHOW THE WORLD WHAT A FREE PEOPLE CAN ACHIEVE. SO FAR THE GOVERNMENT HAS JUST BECOME AN OBSTACLE RATHER THAN A FACILITATOR.
