Bidenomics Plan Grew Economy From Bottom Up
Bidenomics is the opposite of Reaganomics. Reagonomics held to the trickle-down economic theory—meaning that tax breaks and benefits for corporations will eventually trickle down and benefit everyone. This allows businesses, investors, and entrepreneurs to stimulate economic growth.Bidenomics is the opposite. It is about building from the bottom up and the middle out, according to Anat Shenker-Osorio, founder of ASO Communications. His company focuses on political messaging.
- making smart investments in America
- empowering and educating workers
- promoting competition
What Has Bidenomics Accomplished So Far
The Whit House stated that Bidenomics added “13 million jobs and nearly 800,000 manufacturing jobs” to the economy. But the Bureau of Labor Statistics (BLS) reported different numbers.The White House went on to tout that inflation has fallen for 11 straight months.
But inflation had hovered around 7 percent in the last six months of 2022 and only now has dipped in the last six months.
Mr. Biden noted that pay for low-wage workers had increased at the fastest pace over two decades. However, pay increases didn’t keep up with inflation.
What Happened to the Administrations’ Modern Supply-Side Economics?
This isn’t the first time the administration has branded an economic plan. In January 2022, Secretary of the Treasury Janet L. Yellen touted modern supply-side economics.In remarks at the World Economic Forum in 2022, Ms. Yellen described the Biden administration’s economic growth strategy. They were implementing modern supply-side economics. Modern supply-side economics was an answer to supply-side economics.
Supply-side economics says that economic growth can be fostered by decreasing regulation, lowering taxes and allowing free trade.
Modern supply-side economics argues that the government can invest more efficiently than the private sector based on enlightened political motives because the private sector has a profit motive.
Yellen explained that modern side-economics “prioritizes labor supply, human capital, public infrastructure, R&D and investments in a sustainable environment.” She said focusing on these areas increases economic growth and addresses longer-term structural problems like inequality.
The Biden administration embraced modern supply-side economics. But whereas supply-side economics creates a private incentive to work, modern supply-side economics expands government benefits.
For example, the Build Back Better Plan of 2022 cost $2.2 trillion. And in keeping with the “sustainable environment,” $555 billion went toward clean energy and climate change provisions. Billions were also earmarked for housing, childcare, and child tax credits.
What Americans Say About Bidenomics
White House press secretary Karine Jean-Pierre claimed, “People are feeling better about their finances.” What are Americans saying about President Biden and his economics?Bidenomics Final Report Card
The Winston Group’s Presidential Inflation Rate (PIR) tells how Bidenomics is doing. The PIR measures a president’s handling of inflation from the inauguration month to the latest CPI report. The percentage difference in these two numbers indicates the performance rate better than just looking at numbers year to year.It shows what the overall price increase has been since Biden took office.
Biden’s PIR is based on January 2021 CPI compared to the May 2023 CPI report. Inflation was at 1.4 percent in January 2021, according to the BLS. But inflation peaked at 9.1 in June 2022, a 40-year high.
In May 2023, looking at overall CPI numbers for Biden’s time in office, his overall inflation rate had increased to 16.3 percent. That means prices overall have increased 16.3 percent since Biden was inaugurated. Comparing this to the last seven presidents, only President Jimmy Carter had a worse number, at 18.1 percent.
