THE EXPANDED UNEMPLOYMENT
BENEFITS THAT STARTED DURING THE
CORONAVIRUS PANDEMIC COME TO
AN END AS OF YESTERDAY.
THE MOVE AFFECTING 8.9 MILLION
JOBLESS AMERICANS, SO, HOW WILL
THIS IMPACT THE ECONOMY AS
STRUGGLING LABOR MARKET AFTER
ALL THERE’S 10 MILLION JOBS OPEN
LET’S ASK CHARLES PAYNE HOST OF
"MAKING MONEY" ON FOX BUSINESS.
THE REPUBLICAN STATES HAVE
ALREADY STARTED TAKING A WAS
AWAY THIS $300 A WEEK.
WHAT’S THE RESULTS THERE, WHAT
DO YOU EXPECT THE RESULTS TO BE
NOW, CHARLES?
CHARLES: YOU HAVE SOME PEOPLE GO
BACK TO WORK BUT I THINK THE
MISTAKE IS THINKING THAT
THIS WHOLE THING WILL BE
INSTANTANEOUS.
PEOPLE HAVE GOTTEN ROW LEAF FOR
GOING ON A YEAR AND A HALF,
18 MONTHS, SOME LONGER.
PEOPLE HAVE MONEY IN THE BANK.
HOUSEHOLDS HAVE THE GREATEST
BALANCE SHEETS THEY HAVE EVER
HAD BEFORE SO IF THE
UNEMPLOYMENT CHECKS STOP TODAY
YOU’VE GOT A WHOLE LOT OF PEOPLE
WHO HAVE ALREADY SAID IN SURVEYS
AND OTHER QUESTIONNAIRES THEY
WILL WAIT.
THEY’VE GOT ENOUGH MONEY SOCKED
AWAY, THEY HAVEN’T PAID THEIR
RENT, A LOT OF FOLKS HAVE HAD
MORATORIUMS FROM STUDENT LOANS
AND MORTGAGES, RENTS, GOTTEN
PAID BIG TIME MONEY, GOTTEN
CHECKS FROM A VARIETY OF FEDERAL
PROGRAMS.
PEOPLE ACTUALLY HAVE MONEY, SO,
IT’S A MISTAKE TO SAY OKAY, XYZ
RED STATES STOPPED ON
THIS DATE AND IN THE NEXT DAY
JOBS DIDN’T EXPLODE, PEOPLE
DIDN’T GO BACK TO WORK.
THEY WILL EVENTUALLY AS THAT
MONEY RUNS OUT, BUT YOU’RE NOT
GOING TO SEE AN IMMEDIATE
REACTION.
BRIAN: I THOUGHT JOE MANCHIN IS
TRYING TO SAVE THE COUNTRY FROM
THE 3.5 TRILLION WE CAN’T AFFORD
WHICH IS BASICALLY CRADLE TO
GRAVE SAFETY NET WHICH IS A NICE
THOUGHT BUT UNAFFORDABLE IN OUR
CURRENT SYSTEM BUT DOESN’T SEEM
TO MATTER TO DEMOCRATS BUT IN
THAT COLUMN I SAW THIS ONE LINE
I WANT TO BOUNCE OFF YOU.
MANCHIN COMPLAINED THE
REPUBLICANS USED THE
RECONCILIATION PACKAGE OF
TRUMP’S TAX CUTS IN 2017 AND IT
ONLY BENEFITED RICH INVESTORS
MORE THAN WORKERS WHILE ADDING
1 TRILLION TO THE NATIONAL DEBT.
DO YOU WANT TO TAKE ON THAT
STATEMENT BECAUSE I DON’T
BELIEVE IT’S ROOTED IN FACT.
CHARLES: WELL, FIRST OF ALL, ALL
OF THIS MONEY PRINTING WHETHER
IT’S A FEDERAL RESERVE OR THE
FEDERAL GOVERNMENT IS GOING
TO HELP CORPORATIONS BECAUSE
EVENTUALLY, PEOPLE GO OUT AND
SPEND THAT MONEY AND GUESS WHAT?
IT GOES TO THE BOTTOM LINE AND
WHEN THOSE BOTTOM LINES GET BAD,
STOCKS GO UP.
HERE IS THE BEAUTIFUL THING IF
YOU LIVE IN AMERICA OPEN UP AN
ACCOUNT IN THE MARKET BY 9:30
TODAY.
SO THOSE KIND OF THINGS ARE JUST
COMPLETELY JUST LAND MINES OF
MISS TRUTHS AND DISINGENUINOUS.
NOW AS FAR AS THE LABOR MARKET
IS CONCERNED, THE WAGE MARKET IS
CONCERNED, THE VERY MONTH THAT
PRESIDENT TRUMP’S TAX CUTS WENT
INTO EFFECT, BLUE COLLAR WAGES
SURGED.
THEY WENT AHEAD OF INFLATION,
THEY GREW WELL OVER 3% EVERY
SINGLE MONTH YEAR-OVER-YEAR, AND
IT WAS THE FIRST TIME IN MORE
THAN A DECADE, BRIAN, MORE THAN
A DECADE THAT BLUE COLLAR WAGES
OUTPACED NOT ONLY OVERALL WAGES
BUT INFLATION AND THE REASON I
BRING UP INFLATION IS KEY.
EVERY SINGLE MONTH THIS YEAR,
INFLATION MONTH-TO-MONTH HAS
WIPED OUT ANY JOB GAINS AND HERE
IS WHAT’S REALLY KIND OF
INTERESTING.
SINCE THAT $1.9 TRILLION WENT
INTO EFFECT, THE SO-CALLED
RESCUE PLAN, HERE IS WHAT YOUR
REAL WAGES DID.
NOT NOMINAL WAGES BUT WHEN YOU
GO TO THE SUPERMARKET, AND IN
APRIL THEY WERE DOWN 3.7%
YEAR-OVER-YEAR, IN MAY 2.8%, IN
JUNE 1.6% AND JULY 1.2%, WAGES
ARE ACTUALLY DOWN BECAUSE WE PUT
SO MUCH MONEY INTO THIS ECONOMY,
THAT PRICES HAVE GONE THROUGH
THE ROOF.
BRIAN: SOMEONE SHOULD TALK
ABOUT INFLATION BECAUSE IF
YOU’RE WORRIED ABOUT BOTH PEOPLE
SAY WHY AM I GETTING LESS AND
PAYING MORE WHEN I GO SHOPPING?
WHO DID WHAT AND WHOSE
RESPONSIBLE, AND BY THE WAY,
MORGAN STANLEY NOW PREDICTS THE
ECONOMY WILL GROW ANNUALLY
BY JUST 2.9%, INSTEAD OF 6.5%
REAL QUICK ON THAT?
CHARLES: YEAH, THEY DROPPED
THEIR NUMBER FOUR TIMES IN THE
LAST FOUR WEEKS.
WE’VE GOT SOME PROBLEMS HERE.
PEOPLE HAVE TO EVENTUALLY GET
BACK TO WORK.
I UNDERSTAND IF YOU WANT TO HOLD
OUT, WANT MORE MONEY, WANT
HYBRID WORK, THERE’S A LOT OF
THINGS HAPPENING PSYCHOLOGICAL,
BUT WE’RE IN A DANGEROUS PLACE.
WE JUST SQUANDERED THE GREATEST
JOBS MARKET EVER IF PEOPLE DON’T
START TO GO BACK TO WORK.