Reimagining Bidenomics: A Fresh Perspective on President Biden’s Economic Vision
“Bidenomics” is the term coined to encapsulate the economic vision of President Joe Biden and his administration’s policies, plans, and achievements. While initially used in a derogatory manner by publications such as The Wall Street Journal and The Financial Times, President Biden has chosen to embrace the moniker and highlight the positive aspects of his economic approach.
Bidenomics has quickly become a central theme in President Biden’s messaging about the strength of the economy under his administration, and it is expected to play a prominent role in his upcoming re-election campaign.
What is Bidenomics?
President Biden himself summarized the philosophy of Bidenomics on Twitter, stating that it is about “growing the economy from the middle out and the bottom up, not the top down.” This approach stands in contrast to Reaganomics, the economic policies of the Reagan administration, which focused on tax cuts, deregulation, domestic spending cuts, and reducing inflation.
According to the White House, Bidenomics rejects the trickle-down economic policies associated with Reaganomics. It is built on three pillars:
- Making targeted public investments in areas such as infrastructure, semiconductors, clean energy, and climate security. The Inflation Reduction Act (IRA), the CHIPS and Science Act, and the Infrastructure Investment and Jobs Act are key components of these critical investments.
- Empowering and educating workers to strengthen the middle class. The Biden administration emphasizes the importance of education at all levels, including free universal pre-K, free community college, and investments in registered apprenticeships and career technical education programs. It also supports easing barriers to union membership, empowering workers to negotiate for better wages and benefits.
- Promoting competition to lower costs and foster the growth of entrepreneurs and small businesses. The Biden administration has prioritized enforcing antitrust laws to ensure fair competition. Additionally, it aims to reduce consumer costs, eliminate unnecessary fees, and create a more accessible market for new products.
Assessing the Economy under Biden
Upon assuming office, President Biden faced significant economic challenges resulting from the COVID-19 pandemic, including widespread job loss, disruptions in global supply chains, and a devastating loss of life.
Since then, the economy has been characterized by contrasting forces: high inflation and a robust labor market. While inflation is gradually slowing down, essential goods like groceries and gas remain relatively expensive. The Federal Reserve’s efforts to control inflation through interest rate hikes have led to the highest mortgage rates in 23 years, making homeownership less attainable for many Americans.
Despite achieving historically low unemployment rates and stabilizing price growth, the Biden administration has struggled against negative perceptions of the economy and concerns about a potential recession on the horizon.
A September poll conducted by the Associated Press-NORC Center for Public Affairs Research revealed that only 33% of surveyed Americans approve of President Biden’s handling of the economy. This approval rating has remained relatively consistent since January 2022.
President Biden’s economic vision, often referred to as Bidenomics, represents a departure from the trickle-down economics of the past. It emphasizes targeted public investments, empowering workers, and promoting competition to build a strong and inclusive economy. While the administration faces challenges and negative perceptions, its commitment to these principles remains steadfast.
Photo by Scott Olson/Getty News via Getty Images.
Read More of this Story at www.nerdwallet.com – 2023-10-12 23:19:28
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