The Biden Administration has maintained the stimulus check program of $300 a month to disincentivize people from returning to work, thereby creating a labor shortage and indirectly cause wages to rise, said Mark Skousen, editor-in-chief of Forecasts & Strategies.
“I think actually this is a deliberate policy by the Biden Administration to encourage labor shortages and the reason the federal government is offering these very generous unemployment compensation of $300 a week and so forth, is to force employers to raise wages,” Skousen to David Lin, anchor for Kitco News. “They had a big push to raise the minimum wage to $15 an hour, and that’s not getting through Congress, so indirectly, they’re getting the $15 wage increase by labor shortages.”
For more information on how Biden’s proposed federal budget for 2022 will impact taxes, watch the video above.