By Desmond Lachman
James Carville, Bill Clinton’s political strategist, famously said that when it came to elections it was the economy, stupid. By this, he meant that election outcomes were generally determined by pocketbook issues and by how the electorate felt about the economy.
Joe Biden’s Mounting Economic Problems
If Mr. Carville is right, today’s employment numbers, showing that unemployment has dropped to below 4 percent and average hourly earnings have accelerated to 4 ¾ percent, do not bode well for Mr. Biden in this year’s mid-term elections. By heightening the risk that the Federal Reserve will now have to slam on the monetary policy brakes to bring inflation back under control, a strong labor market increases the chances that in the run-up to November’s elections the stock market will swoon and the economy will slump.
Even before today’s labor…