Trying to create a few jobs while killing many jobs does not work. In this episode, I'm going to
share with you my prediction about job creation versus unemployment and the unemployment rate.
Get ready, they're sort of counterproductive and that's what's happening right now in America.
So, my name's Doug Andrew and I've been a financial strategist a retirement planning specialist now
for more than 48 years. But I love to go out and teach and speak. I have a national radio
show that's been going for 13 years. I've been very blessed in my life to have authored 11 books thus
far. I'm working on my 12th and we've also been very grateful for the receptivity of those books.
We've gone through over a million and many of them have been best sellers one became a new york times
and wall street journal. Number one bestseller back in 2007, it was called last chance millionaire. Now,
I'm passionate in my books about helping people understand complex things in a simple manner
and so, because of that, I get a lot of people asking me questions and so recently people have
been asking me, "Doug, what's your prediction on this that or the other?". So, in this episode,
I'm going to give you my prediction about job creation versus the unemployment rate
and why they're sort of counterproductive. We're going down the highway with one foot on the
gas pedal and the other foot on the brake pedal okay and I think sometimes politicians don't even
understand they're doing that. So, get ready, I'm going to try to simplify this and give you my take.
Now, let me clarify. This is not a political agenda here. When people ask me my take I usually will
ask them, "Do you want me to be honest or gentle?", and people say, "We want you to be honest."
So, I don't mean to hurt anybody's feelings. I want to make sure you understand that whether it's a
Republican or a Democrat in the executive branch or who's controlling congress? Both
parties are guilty when I say politicians. But I have discovered that many if not most politicians
do not understand economics and it's not their fault because they've probably been professional
politicians for decades. They've never run a candy store before but they are making policies
for America that affect economics in a negative way and they don't understand what's
going on because they have these visions of, "Oh, let's do this. Let's provide health care for
all. Let's forgive student loans and we'll get them on our side and we'll get some votes
this way and that way and the other. Let's give people unemployment benefits for an extended
time period. We'll use covid19 as the excuse", and then and then they sit back and they wonder.
Well, come on now, time to get back to work and people are going,
why? You're paying me more not to work than if I go to work and they go back finally to work and
they might have a higher wage because the employers were forced to pay it.
But they get their paycheck and they go out and gasoline costs 50% more than it did.
A year before their lunch at the drive-thru costs more money and they turn around they go,
"How come I am needing 160 more a month to buy the same gallons of gas and loaves of bread that
I bought a year ago?", and they're wondering, "What is going on here?", and it's because we sometimes
are going down this highway with one foot on the gas pedal the other foot on the brake pedal
and politicians don't even understand they're doing that. So, let's talk about job creation
versus the unemployment rate. If you haven't noticed the Biden administration is spending more
money than any other government in the history of the world. Did you know that and right now
the federal government in 2019 they spent about 6.2 trillion and they only brought in
about four trillion and so they were spending 50% more than they brought in and
so they have to print money or raise taxes in order to cover that. Then covid 19 hit.
In the year 2020, the government went through 9.2 trillion. Again, they're not bringing in 9.2
trillion they're bringing in if they're lucky half that. So, they're spending in 2020 double
what they brought in. Now, if you spent 200,000 and you only made a hundred thousand you can't do
that for very long. When government spends way more than they bring in they're forced to do two things.
Print more money. So, how much have they been printing? About a hundred billion dollars every
single month. In 10 months they infuse a trillion dollars of new paper dollars into the economy.
But it causes inflation because when you put too much money out there the dollars become worth less
and so people see it when they go to the gas pump or the hamburger drive-in or
a used car that cost 21,000 just a year ago the same car cost now 28,000. And so, it's like,
"Golly, it's harder to live", well, so what's the ripple effect of printing money or raising taxes?
Sometimes politicians unaware they go, "Well, just tax the rich, tax the big corporations." Well, if you
raise corporate taxes like Biden has done from 21 up to 28 people say that's only 7%
more. No, it isn't. It's 33% more on a million dollars of corporate profit. If a corporation has to pay
210 it used to pay 210 but now it pays 280. That's 70,000 more which is 33% more. Now, sometimes,
politicians just go, "They can afford that", no, a lot of corporations only work on about
a two percent profit margin. So, if they have to pay more in tax. Who does that hurt? They lay off people.
They change to automation and they lay off people or if they retain people they have to raise
the prices of their goods and services in order to be able to pay the tax and if they raise the price
of goods and services all of a sudden the middle and lower-income people in America might have
more money. But it buys less than the dollars they earned a year earlier and so this
is why all of a sudden you know you try to create jobs. Well, the first thing that president Biden did
for whatever reason with a stroke of a pen when he was put into office he signed what was it 17 or 18
executive orders. One was to get rid of the pipeline. He destroyed
thousands of jobs instantly and he did that in several different ways and then he basically
said, "Well, if you were building that pipeline go out and learn how to be a software engineer."
Well, most of those people that's not what they want to do and you can't just go out and learn how
to be a software engineer when you were a physical engineer of a pipeline or something like that and
so it's just not as easy as sometimes politicians think it's going to be to go out and find another
job. So they collect unemployment and that causes tax revenues to deplete. They have to print more
money. They have to raise more taxes and it goes into this spiral and so here they are they're
trying to create jobs in some ways. But they're actually destroying jobs and causing employers to
let people go or switch to automation or raise the price of goods and services that now people
people are spending 10, 15, 20, or more to buy the same gallons of gas and loaves of bread that
they bought it a year earlier. And so, what good did it all do except it just raised the cost.
Even though your wages went up so did the cost of living by maybe that much or more. Is this
making sense? So that's why I say, "We're like going down the highway trying to stimulate the economy."
We've got one foot on the gas pedal and the other foot on the brake pedal because we're actually
setting ourselves up for a major recession, a market crash, unemployment, and so my take
on all of this is we have to think twice about this and if politicians don't understand this
we're going to come to a rude awakening and to me it's not a matter of if, it's when the economy
has to correct and we come off of this high. And that's why many of my educational videos
on this very channel talk about this. Now, before I make my last point in this prediction. If this is
intriguing you, I would recommend you subscribe to this channel because I give predictions. I give my
take on a lot of things in the economy and what you should be doing to protect yourself. I have
over 500 educational videos that will protect you your money for example from the negative impact
of taxes inflation and market volatility. But a lot of other concepts on this channel. It's free.
So, click subscribe three-dimensional wealth Youtube channel and click the little bell. Why?
Because then you'll be notified every time I post a new video which I do almost on a daily basis.
But stay with me here to the end, I want to gift you a copy of my most recent best-selling book one of
two or three of them. I'll show you a couple of options where I want to give you a book so that
you can begin to learn a lot of these concepts. So, let me connect the dots. So, my prediction regarding
creating jobs versus unemployment. They're working against each other right now and so that's why
I'm very concerned because it seems like the very steps that government takes to temporarily put a
band-aid on things in the economy is actually causing it to be worse when the market actually
crashes. When unemployment spikes. When corporations have to say enough already we can't afford to do that
and I don't want you to be surprised when all of a sudden corporations say, "What's the use?
We can't expand they keep raising taxes on us or they're forcing us to change to automation and
let people go", and it's amazing how many times political leaders don't think through the big
picture. And so, if they're going to continue to do that what can you do? Well, you don't get caught up
into, "Oh golly, yeah let me just coast along here and buy into the government giving handouts."
I mean, sometimes I think the government is almost buying votes. I think that's going to backfire.
Because if you continue to extend unemployment and pretty soon those people are forced to go
to work and then they can't buy as many gallons of gas and loaves of bread as they used to buy
for the same dollar they're gonna have a bad taste in their mouth. So, I don't know where this is gonna
end up. But when you are trying to create jobs one way that is very minuscule in my opinion
compared to the big picture of the jobs they're destroying or they're causing businesses to lay
off people or change to automation. There's no end in sight if you keep doing what you're doing.
So, what can you do? Take ownership of your own future. This is why I'm passionate about writing books and
having episodes on this Youtube channel. If you want to learn more about some of these concepts.
I mentioned I wanted to gift you a free copy of one of my books. I've written 11. This book right here
is if you're interested in the financial asset optimization it's called the laser fund. You simply
go to laserfund.com... You contribute a nominal amount towards the shipping and handling
I'll cover the rest of that. It retails for 20 dollars I'll pay for the book. I'll fire out
a copy of this 300-page book to you. If you're interested in teaching responsibility and
accountability to your children and grandchildren instead of an entitlement mindset, "Oh, will you pay
for. Can I have when's the government going to provide this or that for me?." You may want to
read this book called entitlement abolition and this is a 200-page book you go to entitlement
abolitionbook.com. You contribute a nominal amount towards the shipping and handling, I'll pay for
this book and fire it out to you. You can get both books if you'd like. But subscribe to the channel
and stay tuned because I'm very passionate about giving you insights into what you can do better.
Have a brighter future regardless of some of the mistakes that sometimes our leaders make.