In recent discussions surrounding the U.S. economy, speakers at the Democratic National Convention (DNC), including prominent figures like Senator Bernie Sanders and former President Barack Obama, have asserted that President Joe Biden inherited an economy in disarray when he took office in early 2021. They emphasized the severe downturn and challenges faced at that time, particularly the impact of the COVID-19 pandemic. However, economists argue that the situation is more nuanced. By January 2021, while the economy was still recovering from the pandemic-induced recession, it was on a path to recovery, with the unemployment rate having peaked at nearly 15% in April 2020 and 21.9 million jobs lost during the pandemic [e9b93a78].
Former President Donald Trump had initiated substantial economic measures, signing a $2.2 trillion stimulus package in March 2020 and a $900 billion package in December 2020. By the end of 2020, the unemployment rate had dropped to 6.7% [e9b93a78]. Following this, Biden introduced the $1.9 trillion American Rescue Plan in March 2021, which aimed to further stimulate the economy. By January 2023, the economy had regained all pandemic-related job losses, with unemployment falling below pre-pandemic levels [e9b93a78].
While many economists credit Biden's stimulus efforts for the job growth observed since his administration began, there is ongoing debate about the role these measures played in inflation, which peaked above 9% but has since moderated. Estimates suggest that Biden's policies may have contributed 1-4 percentage points to the inflation rate [e9b93a78]. This narrative surrounding the economy's state remains contested by both political parties, with each side framing the economic recovery in ways that support their agendas.
In addition to the DNC's perspective, a letter by Susan Goodwillie Stedman in the Bangor Daily News reflects admiration from British friends for the U.S. economy's recovery. Stedman notes that the U.S. economy has grown twice as fast as Europe’s in the last three years, attributing this success to Biden's investments aimed at building from the bottom up and middle out. This sentiment aligns with reports from MSNBC that describe the U.S. economy as the 'envy of the world,' citing low unemployment rates and significant job creation since Biden took office [e9b93a78].
An opinion piece by Froma Harrop in the Lewiston Sun Journal echoes these positive assessments, highlighting record-high stock prices and low violent crime rates as indicators of economic success. However, contrasting views exist, such as those expressed by Anthony J. Albini in the Tucson Weekly, who critiques the perception of the U.S. economy as the best globally, attributing it to the uncompetitiveness of other nations rather than Biden's policies [e9b93a78].
Ex-World Bank chief David Malpass adds to the complexity by stating that the U.S. economy is 'clearly weak' under Biden's leadership, pointing to inflation and slow growth as major concerns. He argues that while inflation has eased, it remains a significant issue, and small businesses are struggling due to high interest rates [e9b93a78].
Overall, the narrative surrounding the U.S. economy under President Biden is multifaceted, with various perspectives highlighting both achievements and challenges. The ongoing debate about the impact of economic policies and the recovery from the pandemic continues to shape public perception as the 2024 election approaches.
