The Biden administration has gleaned the wrong message from James Carville’s famous quip, “It’s the economy, stupid.”
President Joe Biden and the White House have embraced the term “Bidenomics.” In a speech over the summer, Biden declared, “Bidenomics is working.” The term is supposed to be catchy shorthand for the president’s policies and how they have boosted the economy.
But voters aren’t buying.
While unemployment remains low at 3.8% in August, many employers still struggle to find workers even after boosting pay. Inflation has eased somewhat, yet remains a problem, particularly for core items. In September, according to the Bureau of Labor Statistics, the Consumer Price Index was up 3.7% year-over-year. That’s the same rate as August and an increase from the 3% rate in June. It’s also a long way from the Federal Reserve’s inflation target of 2%. And that 3.7% is building on 7% annual inflation in 2021 and 6.5% in 2022. In June 2022, the annual inflation rate hit 9.1%, a 40-year high.
There’s no hiding this from consumers. They see it every time they go to the grocery store, fill up their gas tank or pay their energy bill. Would-be homeowners and renters face serious sticker shock. Unsurprisingly, credit card debt has soared. It topped $1 trillion in the second quarter this year. That’s an all-time record.