Bidenomics: From GDP to jobs, U.S. government is driving the economy

Is the U.S. government propping up the national economy?

After the gangbusters third-quarter gross domestic product (GDP) print, the business media went into full hype mode, talking about how great the economy is doing.

On the surface, a 4.9 percent growth rate suggests a red-hot economic landscape. In addition, 336,000 new jobs in September, retail sales were still robust, and factory activity finally turned positive after a year.

But underneath the headlines pointed to something entirely different.

In fact, it is safe to say that the federal government is driving a significant portion of the U.S. economy.

First, here is a look at how much government spending there was in the third quarter, according to the Bureau of Economic Analysis (BEA).

Federal spending spiked by more than six percent, national defense soared by eight percent, and state and local spending skyrocketed by close to four percent. In total, government outlays contributed one percent to the final GDP headline figure.

Next, the BEA published the PCE data. This report revealed something perplexing: government wages continue to soar while private wages are slowing.

BEA data show that government workers’ wages are near a record high of 8.1 percent and private sector workers’ wages slowed to below four percent.

When you factor in that government payrolls have accounted for about one-quarter of all employment growth in 2023 — and probably more when accounting for health care and social assistance jobs — it becomes evident that the U.S. economy is being driven by the Leviathan.

Moreover, all of the corporate welfare emanating from Bidenomics, be it the Inflation Reduction Act or the US CHIPS and Science Act, taxpayers are on the hook for the new factories and jobs being created.

This is the government’s world and everyone is just funding it.