‘Bidenomics’ too slow

US ECONOMY: ONLY SMALL IMPROVEMENT IN THE WALLETS OF FAMILIES Consumers struggle to accept we’re not going back to 2019 – expert.

US President Joe Biden has good news to sell on the economy as he seeks reelection in November, but voters don’t seem to be buying it.

Growth is up, unemployment is down and the US economy is recovering from the Covid pandemic better than most other countries, thanks to a huge stimulus package.

The problem for the Democrat’s campaign for a second term in office is that most Americans are not feeling the improvement in the place that matters most: their wallets.

Inflation is mostly declining, but stubbornly high prices mean people are still struggling to put food on the table, pay the rent or run their car, whatever the government numbers say.

Biden yesterday headed to his first economy-focused campaign event of 2024, in Allentown in the crucial battleground state of Pennsylvania.

After inflation figures rose more than anticipated on Thursday, he boasted of creating 14 million jobs since taking office, but conceded there was “much more work to do to lower costs” for American families and workers.

Joanne Hsu of the University of Michigan, whose department publishes a monthly consumer confidence survey that’s closely followed by markets, said the mood in the US was improving – but slowly.

“There is plenty of evidence in our survey that consumers do recognise the areas of strength in our economy,” said Hsu. “However, what they don’t feel good about is that inflation, high prices specifically, continue to weigh down on their economic experiences.”

Prices, in particular, have not come down to pre-pandemic levels, making a trip to the supermarket in America a punishing experience for many families.

“Consumers are still really struggling to accept that we’re not going back to 2019,” said Hsu.

His confidence that the economy would woo voters saw the White House last year rebrand his policies “Bidenomics” as they tried to sell the good news to voters last year.

“Bidenomics”, in particular, involved his signature Inflation Reduction Act, which involved spending hundreds of billions of dollars to revamp infrastructure and kick-start high-tech manufacturing and green energy and technology.

But many of those projects are years in the making and won’t bear fruit until after the election.

Another issue is that many are regional projects that local officials can take credit for.

And the risk is that any economic gloom would then be tied to him as well. –