"Of course, if you bypass the production phase of the cycle by sending checks directly to households, you will get a strong surge in economic growth. As shown in the GDP chart above, the massive spike in economic growth in the second quarter of 2021 directly resulted from those fiscal policies.However, once individuals spent that stimulus, the economic activity subsided as the production side of the equation was still lagging. Here is the crucial point about full-time jobs.“For a household to consume at an economically sustainable rate, such requires full-time employment. These jobs provide higher wages, benefits, and health insurance to support a family. Part-time jobs do not.”While the media touts the ‘strong employment reports,’ such is mostly the recovery of jobs lost during the economic shutdown. As shown, full-time employment as a percentage of the working-age population failed to recover to pre-pandemic levels."
