“Bidenomics” is working according to Pres. Joe Biden, yet, voters are not convinced that the current president has done a good job with the US economy.
Heidi Shierholz, president of the nonpartisan Economic Policy Institute, told ABC News that “There’s been this unprecedented gap between what the data shows us is going on in the economy and what people think is going on in the economy.”
A “rosy” picture
Since reaching a peak of 9.1% in June of last year, the rate of inflation has been declining for 11 straight months, reaching 4.0% in May. 13.2 million new jobs have been created since Biden took office, and the unemployment rate is currently 3.7%, which is close to a 50-year low.
In a recent report, the Treasury Department said that since the end of 2021 and the enactment of the measures, investment in manufacturing construction has doubled.
According to Brad Setser, a former trade and Treasury official in the Biden and Obama administrations, “For the first time in a long time, there’s enthusiasm about building high-tech factories in the United States.”
Voters not convinced about Bidenomics
Biden’s popularity with voters about the economy hasn’t improved despite the developments. Hence, there is a lot of scepticism about Bidenomics.
Fifty-four percent of Americans responded in a recent poll that former President Donald Trump handled the economy better than Vice President Joe Biden while he was in office.
Inflation is still uncomfortably high and wage growth has only recently begun may be a significant factor in why voters may not be giving Biden credit.
Last week, Powell stated that more interest rate increases may be forthcoming to lower the goal inflation rate of 2%, which is not anticipated to be attained until 2025.
Zandi described inflation as “painfully high.” “It’s moderate, but people are still spending more of their income just to keep up their purchasing power.”
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