It is becoming increasingly difficult for the Biden administration to claim that we are in an economic crisis that requires more spending. It is closer to the truth that the economy is growing in a way that requires spending and monetary restraint.
The latest evidence came Monday with news from the Institute for Supply Management that the March survey for service companies hit 63.7. That’s an all-time high and means rapid growth and optimism. The only problem is a lot of companies say they can’t find enough manpower or supplies to fill their order books.
This follows the March Blowout Employment Report released on Friday with a total of 1.07 million new jobs, including the last two months of revisions. Wage increases have been bigger than meets the eye as many returning workers were in low-wage jobs that were hit by the pandemic.
Other economic signals confirm that the economy will soar this year if new strains of Covid-19 don’t defeat vaccines and if politicians don’t do anything stupid. The recession may have bottomed out last April and the economy has been growing for at least nine months.
All of this raises more doubts about the very accommodative monetary policy of the Federal Reserve. It also makes President Biden’s new $ 4 billion spending plan a case of unnecessary excess, but then it’s harder to take advantage of a non-crisis. The longer he can pretend we’re still in crisis, the less likely it is that voters will find that this rebound has nothing to do with bidenomics and was inevitable when the pandemic wore off.