Americans have misconceptions about the Biden economy, particularly regarding inflation, job market strength, and the overall performance of the US economy. While Americans correctly assess the high inflation rates, they underestimate the strength of the job market and the performance of the US economy compared to other developed nations. Despite the creation of 14 million new jobs under Biden's presidency, Americans perceive job growth as average or weak. Similarly, the unemployment rate has dropped to 3.7%, close to a record low, but Americans believe it is average or high. Americans also underrate the US economy's performance compared to other countries, despite its quick recovery from the COVID-19 downturn. [709f4faa]
The article suggests that Americans' gloominess about the economy may be influenced by factors such as fractious politics and other societal woes. However, it also highlights that many Americans may not have accurate knowledge about the state of the US economy, despite President Biden's efforts to communicate positive economic developments. [709f4faa]
Paul Krugman, in an opinion piece for The New York Times, argues against the narrative that President Biden is presiding over a bad economy. Krugman states that the economic news has been remarkably good and suggests that the perception of a bad economy among Americans may be due to historical discontent rather than the current economic situation. Krugman also discusses the temporary surge in prices and the impact on voters' sentiment. He concludes that trying to impose deflation on the economy would have had disastrous effects on employment and output. Krugman emphasizes that the outcome of the next election is uncertain and that blaming Biden for economic policy mistakes may not be accurate. [709f4faa]
Despite a strong economy, polls show that U.S. adults give the Biden administration low marks on economic management. The article suggests that consumers may be misinformed about the state of the economy and that Biden should do more to educate them. It also discusses the growth of average real wages and the impact of inflation on wage growth. The article argues that increasing nominal wages by raising the minimum wage may conflict with reducing inflation and suggests that helping workers transition to higher-paying jobs could be a better solution. However, this approach comes with challenges, including the need for significant borrowing and the potential for increased structural inflation. The article concludes that addressing the wage gap and improving the economy will require a multi-year effort and coordination between monetary and fiscal policies. [709f4faa]
Despite record-breaking inflation, Biden economic adviser Jared Bernstein claims that 'real wages have grown' and that the economy is 'on the right track'. However, critics argue that Bernstein's claims are misleading because he only cited data from the last couple of months, failing to provide a comprehensive view of the situation. While inflation rates have slightly decreased recently, they are still higher than during the Trump administration. Bernstein argues that consumer spending and growth rates are positive, with an unemployment rate below 4 percent for 21 months. He also claims that real wages and disposable income have increased, suggesting that wages are beating prices. However, critics point out that American borrowers are getting closer to maxing out and that delinquencies have increased. Gas prices have also risen significantly, with the average price per gallon reaching $5.06 in June 2022. The article concludes by highlighting the importance of supporting fact-based journalism and thoughtful analysis in the face of cancel culture and political correctness. [709f4faa]
Deputy Commerce Secretary Don Graves visited Milwaukee to discuss the Puerto Rican community and address concerns about the economy. The U.S. Department of Commerce's report showed that Gross Domestic Product (GDP) had grown by 5.2% in the third quarter, while the rate of inflation remained above 3%. Graves acknowledged the frustration of voters, particularly people of color and those in the working class, with high costs. He emphasized that inflation was heading in the right direction but understood the need for wages to keep up with rising prices. Local business owner Edwin OrdoƱez highlighted inflation and labor costs as his biggest challenges, mentioning price gouging by suppliers and unreasonable fees charged by credit card companies. Graves stated that the Biden administration was focused on addressing these issues. A New York Times/Sienna College poll found that Biden voters making less than $50,000 a year and people of color were skeptical about the current economic state. The poll also showed that workers earning less than $50,000 a year and Black and Hispanic voters rated the economy as poor or fair. Graves expressed confidence that inflation would continue to decrease in the coming months and years. President Biden announced the creation of a council to improve supply and logistics chains and crack down on companies that raised prices unnecessarily. Despite the challenges, OrdoƱez remained optimistic about the future of the economy. [709f4faa]
Inflation is falling in the US, with core inflation declining to 2% and headline inflation dropping to zero. The financial sector is encouraged by these numbers and some forecast a cut in interest rates to prevent a recession. President Joe Biden's 'Bidenomics' program has led to steady growth and strong employment, with an annualized gross domestic product of 5.2% in October and an unemployment rate of 3.9%. The US has seen a record of job creation under Biden, with 14 million new positions since he took office. Personal income and consumer spending have also increased. Despite these positive indicators, polling shows that most Americans are unhappy with the economy and blame the president. Economist Dean Baker suggests that slanted news coverage may be influencing public perception. The article concludes by urging Americans to recognize Biden's economic achievements and vote to defend the future from former President Donald Trump's influence. [b2e3f73b]