Bidenomics, the economic policies proposed by President Joe Biden, has been a topic of extensive analysis and debate since its introduction. The administration introduced 'modern supply-side economics' in January 2022, with Treasury Secretary Janet Yellen emphasizing the importance of raising labor-force participation and productivity through government spending and increased capital taxation. The 'Build Back Better' legislation aimed to address economic inequality through social-service reforms, although by September 2022, the focus shifted towards resilience against global shocks and corporate subsidies. Key pieces of legislation that emerged during this period included the Infrastructure Investment and Jobs Act, the CHIPS and Science Act, and the Inflation Reduction Act, which collectively aimed to bolster green technology and enhance national security. However, the Biden administration faced significant economic challenges, including record evictions, homelessness, and persistent inflation.
The American Rescue Plan, passed in March 2021, allocated $1.8 trillion to stimulate the economy, while Biden proposed an additional $4.2 trillion in new spending through the American Jobs Plan and the American Families Plan. However, corporate lobbying against tax increases intensified, leading to a shift in focus away from expansive social spending due to inflation concerns. This culminated in a final reconciliation that produced the Inflation Reduction Act, which included $369 billion in tax credits. The influence of corporate interests significantly shaped fiscal policy during this period, raising questions about the sustainability and effectiveness of Bidenomics.
In the ongoing debate surrounding Bidenomics, various articles have highlighted both positive and negative economic indicators. For instance, the Los Angeles Times noted strong GDP growth and declining inflation, yet public opinion polls reflect a sense of economic pessimism, attributed in part to relentless Republican criticism of Biden's policies. Similarly, the Fountain Hills Times Independent pointed to the passage of significant legislation that jumpstarted the economy post-pandemic, while also criticizing the new House Speaker for his lack of progress in funding the government.
Conversely, the Washington Examiner provided a critical perspective, arguing that Bidenomics has led to increased government dependency and fiscal instability, with households facing an average cost increase of $11,434 since Biden took office. The Financial Times discussed the potential challenges Bidenomics may face, including opposition from Republicans and concerns about inflation.
Recent analysis from Reason highlights how high inflation during the Biden administration has negatively impacted the economy and may hinder the potential for a permanent progressive takeover of federal policy. The piece discusses the rise and potential fall of 'New Progressive Economics' under Biden, who was not the left's first choice in 2020. His administration included ultra-progressive staff pushing for aggressive anti-trust enforcement and increased social spending, exemplified by the $1.9 trillion American Rescue Plan (ARP). However, Biden's unpopularity and low approval ratings for economic handling, coupled with inflation concerns, threaten the New Progressives' influence. Polls show voters are frustrated with inflation, which was exacerbated by the ARP. Critics warned about inflation risks, but New Progressives dismissed these concerns. If Vice President Kamala Harris wins, she may pursue radical price controls, further complicating the economic landscape.
An analysis from Geopolitical Intelligence Services AG compared the economic performance under both Trump and Biden, noting that while GDP growth was modest under both administrations, inflation surged under Biden due to inherited factors. The article emphasized that public finances worsened under both presidents, with rising deficits and a similar unemployment rate at the start of Trump's administration and the end of Biden's.
In a recent piece by The New York Times, author David Leonhardt highlighted that despite a general lack of trust in government, federal initiatives have proven effective in addressing significant issues. For example, Operation Warp Speed received $18 billion in funding, leading to the rapid development of a Covid vaccine that saved millions of lives. Immigration surged to an average of 2.4 million annually during Biden's first three years, three times higher than under Trump, although encounters decreased in 2024 after Biden tightened border policies. Biden's economic policies also include infrastructure rebuilding, reduced insulin costs, and increased clean energy production. Historical tax increases on the wealthy have shown effectiveness, reinforcing the notion that the government remains a powerful force despite global challenges.
Adam Tooze, in his analysis for the London Review of Books, discusses the historical context of Bidenomics, emphasizing the administration's focus on national rebuilding through industrial production. The Inflation Reduction Act and the CHIPS Act were highlighted as key components of this strategy. However, Tooze notes that Biden's presidency has been marked by challenges from global powers like China and Russia, as well as internal social issues. The U.S. has become heavily involved in global conflicts, particularly in Ukraine and the Middle East, with Biden's foreign policy emphasizing alliances and confronting China. The article reflects on the implications of Biden's policies for future U.S. power dynamics, suggesting a significant shift from post-Cold War globalization towards a more interventionist stance in both economic and foreign policy realms. Overall, the impact of Bidenomics on the U.S. economy and various communities remains a contentious issue. While some point to positive economic indicators and legislative achievements, others express skepticism regarding the long-term effectiveness of these policies and their implications for future economic stability.