It's the Economy
Has President Biden Really Destroyed Our Economy?
Since President Joe Biden took office, U.S. inflation has been a familiar refrain and a reliable talking point for his opponents. As the country and world emerged from a once in a lifetime pandemic, prices began to skyrocket as the supply chain was unable to keep up with demand. This spike in inflation was not unique to the United States. Countries around the world saw marked inflation. In fact, Turkey suffered a staggering rate of 54.8%, the highest in the world.
Inflation in the United States finally peaked at 9.1% in mid-2022 and now sits at 3.27% year over year.
It is hard to deny that things are more expensive than they were four years ago. My daily Diet Coke from Wendy’s costs me nearly 70-cents more than it did just a few years ago. However, last month, consumer prices held steady due to cheaper gasoline and other goods that helped offset the inflated cost of housing. Despite inflation unexpectedly holding steady, the Federal Reserve was reluctant to reduce interest rates. If inflation holds steady or declines, it is likely the Fed will begin to gradually bring down interest rates.
In an election year where the results will prove pivotal to the course of our country, Republicans have effectively used inflation and the economy as a battering ram on likely Democratic nominee, President Joe Biden. And why not? A March Gallup Poll found that 55% of those polled said they were extremely concerned about inflation. Unfortunately, but not surprisingly, the Republican Party has resorted to an array of half-truths and lies to amplify voter’s concerns and support the notion that President Biden has destroyed our economy. And unfortunately, the Biden Administration’s coining of the term “Bidenomics” has yielded mixed results and has provided easy fodder for Republicans to use against their political rival. Here is what they are saying:
Let us take a step through the door to reality, shall we? If you look at the current state of the economy based on numbers (not feelings), the United States is doing remarkably well. As stated earlier, inflation has cooled to 3.27% year over year, down from its peak of 9.1% around the same time in 2022. According to the Bureau of Labor Statistics, unemployment rose slightly to 4% in May from 3.9%. This comes on the heels of over a year of record low unemployment, the likes of which our country has not seen in 54 years. On top of that, wages outpaced inflation over the past year, easing the impact of a higher cost of living. Weekly earnings for the typical worker rose 2.2% last year after adjusting for inflation. And can we talk about jobs? Since President Biden took office in January of 2021, 15.2 million jobs have been created, six million higher than before the pandemic.
Here are a few more highlights (factcheck.org):
The U.S. economy has expanded each year under Biden and is expected to continue to grow this year. This means the economy is moving away from a recession, not toward one.
The number of people receiving food stamps has decreased by more than 1 million.
The S&P 500 has increased 32.9%.
Violent crime has gone down. The latest figures from large cities show an 8.6% drop in murders. Historically, when the economy is strong, crime rates drop.
This is not to say that everyone is doing great. A lot of Americans are still struggling to afford the high price of food and gas. This is where Republicans take aim and place the blame on the man currently sitting in the Oval Office. But it is important to take note that corporations have taken advantage of inflation to hike prices, thereby protecting, and even raking in record profits. Economist Isabella Weber has pointed out that “corporations are keeping prices high even as post-pandemic and Ukraine War supply chain pressures ease and wage growth slows. Why? Because they can.” (groundworkcollaborative.org)
Fortunately, it seems like the message might be starting to get through that President Biden’s economic policies might actually be working. That is a good sign, six months out from an election where anything can and will happen.
If President Biden wants to be re-elected in November, and Democrats want to keep the Senate and retake the House, they are going to have to devote an enormous amount of effort combatting the Republican’s false narrative that “Biden’s failed economic policies” have destroyed America. They cannot assume the fall of Roe, or Donald Trump’s recent conviction will be enough to motivate Americans to vote for them. For most voters, it is what a president will do to put money in their wallets that seals the deal.
As James Carville said in 1992, “It’s the economy, stupid!”