After reading the article Welcome to Joe Biden’s Low Growth Economy written by Michael N. Peterson, I think Biden's choices in office have been a prime example of a man that romanticizes political agendas. For starters, Biden named a bill the Inflation Reduction Act, but the ironic thing about it is that it won't help fix inflation(Peterson, M., 2022). Peterson elaborates that the bill is expected to decrease GDP and job opportunities (Peterson, M., 2022). Biden also has been fighting to cancel school debt. Despite that lifting debt on students may help students, it gives them less of a reason to work. And in other words, this decision will decrease employment rates for younger people because there is less of an incentive to be in the labor force (Peterson, M., 2022).
The two examples I mentioned above show that productivity within the U.S. economy is progressively slowing due to the decisions made during this time of economic distress. The most crippling aspect of these two decisions is their effect on the labor market(Peterson, M., 2022). Human capital is an essential variable of productivity. Meaning Biden's choices are stumping the growth of the economy. If we want prosperity within a country, we must encourage productivity, not decrease it. This could mean making policies that encourage citizens to work. Or maybe it could also mean creating institutions that make working seem like an investment opportunity rather than a chore. Or rather if institutions had more benefits or incentives to work, more people may join the workforce.
Source
Peterson, M. (2022). Welcome to Joe Biden's low growth economy. AIER. Retrieved September 8, 2022, from https://www.aier.org/article/welcome-to-joe-bidens-low-growth-economy/
In the world today, we have so many reasons not to work, we are offered unemployment, and now we are offering students debt forgiveness. While this seems like a good idea, and as a college student myself, I would love to have my college debt go away. Although this doesn't incentivize me to work. Thankfully it looks like employers are planning on hiring more. According to Kevin Grey at NACE, "Employers plan to hire 26.6% more new graduates from the Class of 2022." While this is great, there is still no governmental incentive to work. It will come down to whether college students want to work or not.
Reference:
Grey, K. (n.d.). Employer hiring plans jump for class of 2022 graduates. Retrieved September 27, 2022, from https://www.naceweb.org/job-market/trends-and-predictions/employer-hiring-plans-jump-for-class-of-2022-graduates/