Discover more from The Message Box
The Biden Economy: What You Need to Know
A guide to understanding the impact of "Bidenomics"
Following the news closely is crucial for my career. Keeping up with breaking news and getting accurate, credible information has never been more difficult. Our information ecosystem is both broken (Thanks, Elon!) and awash in a deluge of ill-formed opinions and outright disinformation. The more reliable legacy media organizations too often cover substantive issues through the lens of polls and the political horse race.
President Biden is giving a big speech on the economy today. I shudder to think how the press will cover it. Therefore, I wanted to provide Message Box subscribers with a handful of reliable articles to put the Biden Economy in context.
I hope to make this a regular feature. If you find it helpful, please share it with your network.
1. Inflation is Down
Inflation has been coming down for 11 straight months. In May, prices rose at the slowest rate since March 2021 — driven largely by steep drops in the price of energy and food.
Here’s a CNN story on the most recent report from the Bureau of Labor Statistics. The below chart from the White House Council of Economic Advisors is perfect to share on social media to make the point about inflation.
2. Bidenomics = A Lot of Jobs
More than 13 million jobs have been created since President Biden and Vice President Harris were sworn into office. More jobs were created in the first 28 months of the Biden-Harris Administration than during the entire four-year term of any previous president. The unemployment rate is 3.7 percent — nearly the lowest rate since 1969. Look over this CNBC story on the most recent jobs report and this chart from the White House that emphasizes the point.
3. Manufacturing is Back… Thanks to Biden
President Biden has a long-term strategy to fight inflation, create jobs and raise wages by investing in manufacturing in the United States. This strategy is paying off. Axios recently wrote about the manufacturing “supercycle” taking place in the U.S.:
The 2010s were a period of chronic underinvestment. By contrast, now there are billions flooding into large, expensive megaprojects to manufacture batteries, solar cells, semiconductors and much more.
It is fueled by hundreds of billions of dollars allocated by the Biden administration's signature legislation — the Inflation Reduction Act, Bipartisan Infrastructure Law, and CHIPS and Science Act — as well as pent-up demand.
None of this happens without the investments from President Biden’s legislative accomplishments.
The Center for American Progress put together a tracker of all of the investments from these new laws. Find the ones in your community and share the news with your neighbors.
4. Consumer Confidence is Up
People have mixed feelings about the economy. Majorities disapprove of the state of the economy and the President’s leadership of that economy (hence this speech). The Right Track/Wrong Track numbers are historically bad. But those numbers — while quite real — do not paint the full picture of how people feel after the pandemic and ensuing spike in inflation. One of the most important and forward-looking economic measures is consumer confidence, which essentially gauges economic optimism.
Well, guess what?
Consumer confidence is at its highest level in 17 months. Check out this report in Reuters:
The Conference Board said its consumer confidence index rose to 109.7 this month, the highest reading since January 2022, from 102.5 in May. Economists polled by Reuters had expected the index to climb to 104.0.
5. MAGA Republicans Want More Tax Cuts for the Wealthy
Joe Biden always says “Don’t compare me to the Almighty; compare me to the alternative.” Well, what is the alternative to Bidenomics?
The Republicans want to cut Social Security and Medicare, repeal the Inflation Reduction Act leading to tens of thousands of layoffs, and cut taxes for corporations and the rich. The House Republicans rolled out a new tax plan that overwhelmingly benefits the wealthy. According to The Center for American Progress' analysis: the richest 1% would receive $16,550 in tax cuts, while the bottom 20 percent would receive only $40. This MAGA tax plan would also force huge cuts for important priorities. This graphic illustrates the devastation their plan would wreak:
Of course, the economy is imperfect; and there is more work to do. People have legitimate concerns that need to be addressed. But the true story of the Biden economy is obscured. If we don’t tell the story, no one else will.