President Biden recently embarked on a nationwide tour to promote the success of his economic policies, which he refers to as “Bidenomics.” However, this tour seems more like a public relations campaign attacking his predecessors rather than a genuine evaluation of his own economic record. In one particular speech, Biden repeatedly criticized the concept of “trickle-down” economics without adequately addressing his own record on crucial economic issues such as inflation, wages, and the stock market.
Meanwhile, the public’s approval rating of President Biden’s economic record is currently at a low 36%. This is mainly due to the negative effects of skyrocketing federal debt, surging inflation, and stagnant real incomes. The runaway spending and bailouts introduced by the Democratic government, which will cost $5 trillion over the next decade, have contributed to this economic decline. Annual budget deficits, which were less than $1 trillion before the pandemic, are now projected to reach nearly $3 trillion within ten years.
President Biden has boasted about reducing the deficit by $1.7 trillion, claiming that no other president has achieved such a feat within two years. However, this claim is misleading as he allowed $2 trillion in pandemic spending to expire on schedule, and then added $300 billion in new spending, resulting in a yearly deficit that is nearly 40% higher than pre-pandemic levels. Additionally, the president’s new budget proposal of $2.5 trillion in deficit reduction over the next ten years is flawed, as it does not include the trillions in proposed tax cut extensions.
The enacted spending, especially the $1.9 trillion American Rescue Plan, has contributed significantly to the rising inflation, turning what should have been a post-pandemic recovery into an economic crisis. Despite warnings from economists like Lawrence Summers, President Biden continued with this spending spree, leading to a more than 16% increase in prices over the past 30 months, costing the average household more than $10,000. This inflation has outpaced wage growth, forcing families to fall further behind. Since Biden took office, hourly compensation (adjusted for inflation) has actually decreased by 5%.
The president often frames his economic agenda as a means to support and strengthen the middle class. However, it is the middle class that has been most affected by rising inflation and declining incomes. Home buyers have been hit by rising mortgage rates and home prices, making housing less affordable. The stock market, although it performed well in 2021, has since experienced a significant decline. Mortgage, auto, and credit card debt, which temporarily decreased due to pandemic stimulus payments, are now on the rise again.
President Biden tends to highlight the 13 million new jobs added since he took office, but many of these jobs are simply a result of the natural return to work after pandemic-related lockdowns. The decrease in the unemployment rate to 3.7% is impressive, but it is driven by the overheating of the economy, which has also caused inflation. Taking credit for job growth while ignoring the effects of inflation is disingenuous. Furthermore, despite the president’s rhetoric on inequality, economic inequality is actually on the rise for the first time since 2011, according to the Census Bureau.
Instead of pursuing genuinely pro-worker and pro-investment policies, President Biden’s economic agenda has resurrected failed big government approaches. His pro-worker stance often involves implementing tariffs, protectionism, and union bailouts, as well as creating expensive regulations that increase labor costs and limit competition. These policies harm American competitiveness, worsen inflation, anger trading partners, and put America’s export industries at risk. The supposed pro-investment policies take the form of selecting winners and losers in the industry, restricting competition, and providing substantial corporate welfare.
Examples of these policies include the CHIPS Act, which aimed to lower production costs for domestic superconductor production but ended up burdening manufacturers with costly childcare mandates and refusing to reform expensive construction and labor regulations. This has led to the cancellation and delay of planned manufacturing plants. The infrastructure law, costing $370 billion, is also facing significant regulatory delays and cost increases sought by unions. Additionally, the Inflation Reduction Act’s clean energy projects are projected to exceed their budget by as much as 2,686%.
Overall, Bidenomics relies heavily on subsidies and regulations that protect favored industries at the expense of consumers and taxpayers. It essentially becomes a system that benefits big labor and politically connected industries. Given the mounting federal debt, rising inflation, and falling incomes, it is understandable why President Biden would rather criticize “trickle-down” economics than defend his own economic record.
In conclusion, President Biden’s economic policies have not lived up to his promises of improving the economy and supporting the middle class. The public’s dissatisfaction with his economic record is warranted, considering the negative consequences of runaway spending, surging inflation, declining real incomes, and deepening economic inequality. The president’s focus on attacking his predecessors rather than addressing these issues raises concerns about his ability to effectively manage the economy and deliver on his promises.
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