The Bidenomics smokescreen won’t help the president
Joe Biden is hitting the campaign trail, talking up “Bidenomics.” What is that, you ask?
Bidenomics is the embrace of Big Government, Big Labor and Big Spending. No wonder Americans are on edge; we’ve learned those are not the best ingredients for healthy, productive growth. (See: Obama and the worst-ever recovery from a recession.).
Here is the truth about the Biden economy: it is barely growing (real growth in the last quarter was 1.1 percent) despite massive federal stimulus. Trillions in spending have thrust our nation’s debt and deficits into the red zone and kicked off inflation, driving real wages lower for 26 consecutive months. Inflation hitting a 40-year high required one of the largest-ever increases in interest rates, which in turned caused three of the biggest bank failures in our nation’s history.
In addition to huge spending, any number of Biden policies, including the intentional squashing of our fossil fuels industries, the “Buy American at any price” union favoritism and the crushing ramp-up in business regulations, have spurred inflation. That is the nut of Bidenomics.
White House spokesperson Olivia Dalton describes Biden’s economic policies as “incredibly popular.” Like most of Biden’s pitch, that is simply not true; RealClearPolitics places the average of his approval ratings on the economy at a minus 17, with 38 percent approving and 57 percent disapproving.
A Gallup poll showed a slight uptick in June in how Americans view their economic conditions, but it remained in deeply negative territory at -32. Only 19 percent rate the economy as excellent or good, compared to 44 percent who say it is poor. Problematic for Biden: Independents as well as Republicans are sour on the economy, and more than two-thirds of that critical group say it is getting worse.
It is said that a strong offense is the best defense. Biden is playing defense on numerous fronts — the border, crime, a lead-from-behind foreign policy — but has nonetheless chosen to make the state of our nation’s finances the centerpiece of his campaign.
It’s understandable; there are some data points he can contort into favorable accomplishments. He says his administration has created 13.4 million “new” jobs; in reality, the vast majority of those jobs have simply accompanied the country’s recovery from the COVID-induced shut-downs. In January 2020, before the pandemic caused millions to stay home, there were 158.7 million people working in the U.S.; last month, that number had only expanded to 160.7 million.
Biden crows about record-low unemployment, but neglects to mention that millions of workers disappeared during COVID, retired or are living off the expanded benefits contained in the American Rescue Plan. In January 2020, there were 95 million working-age adults “not in the labor force”; today that number has expanded to 99 million. That sure helps bring unemployment rates down.
But the bigger picture here is that Biden’s approach is one long favored by Democrats: he wants to build up the power of the state at the expense of private enterprise, guaranteeing lower productivity. He claims to be reducing inflation by encouraging competition. His radical FTC has blocked an unheard-of number of business combinations, in effect putting unelected ideologues in charge of allocating capital. That cannot turn out well.
When Biden throws hundreds of billions into changing the direction of our energy industries, he can claim “progress” on a radical climate agenda, but he will also have to explain to consumers why their electricity prices are rising at historically high rates, even as the cost of oil and natural gas is declining. He will also have to make excuses for the predicted power outages that two-thirds of Americans may face, according to the nation’s grid monitor.
It is worth noting that during most of Donald Trump’s four years in office, the country was quite optimistic about the economy. Indeed, people were so positive that the issue receded in importance, only to reclaim its “number one concern” status under Biden.
The most fascinating aspect of Joe Biden’s presidency is Americans’ profound pessimism, in spite of a solid jobs market. From 1952 until 2023, consumer confidence (as measured by the University of Michigan) in the United States averaged 86 points; the all-time low was 50, recorded in June of 2022.
Again: the worst consumer confidence in 70 years was posted 18 months into Joe Biden’s presidency, brought on by reports that prices had jumped 9.1 percent in June — the most since November 1981. The sudden surge in prices shocked Americans, and raised doubts about Biden’s spending spree as well as the people in charge, who ignored warnings and didn’t see it coming.
It is interesting to note that during Trump’s entire presidency, up until April of 2020 when the government began to shut down because of COVID, consumer sentiment stayed at or above the long-term average. Even in the second half of 2020, when the nation was gripped with fear and no vaccine had emerged, sentiment stayed above the levels posted under Biden.
Reeling from accusations of bribery and corruption, Joe Biden wants to change the topic; the president wants to talk about anything but his mounting legal troubles. Hence, his focus on the supposed success of “Bidenomics.”
You can’t blame him. He and his administration are staggering under a mounting pile of evidence — whistleblowers, eyewitness testimony, photos, text messages, bank records and emails from the laptop of his own son, Hunter Biden — that point to tax evasion, bribery and money laundering by Hunter Biden and also to the likely involvement of the president.
But Biden taking ownership of an economy that many see as on the verge of slipping into recession is risky. Putting his name on it could prove fatal to his reelection hopes.
https://thehill.com/opinion/white-house/4073321-the-bidenomics-smokescreen-wont-help-the-president/
Published in The Hill
