Joe Biden Touts US Economy, But Recession and Wage Loss Loom
By President Joe Biden recently touted the state of the U.S. economy on social media.[0] The latest job report from the Labor Department showed the economy added 517,000 jobs in January, far exceeding economists’ expectations.[1] The rate of unemployment dropped to 3.4 percent which is the lowest since 1969.[2] Biden claims that his administration had cut the deficit by $1.7 trillion, which was achieved after the largest increase in government spending in all of U.S. history.[3]
Wages have risen by 10.1% over the past two years, while the CPI has risen by 14%.[3] This means that Americans’ real incomes were cut by 3.9% over that time.[3] Despite this, Biden celebrated that wages are up.[3] But this is hardly something to brag about.[3] A CBS News-YouGov poll found that 33% of surveyed Americans view the economy as “good” while 61% view it as being “bad.”[4]
President Biden remarked that the unemployment rate has reached its lowest point in 54 years, with job growth during his administration being the strongest it has ever been in a two-year period.[5] According to a Wall Street Journal survey, more than two-thirds of economists anticipate a recession to occur within the next year, despite the current economic recovery.[0] A staggering 38% of Americans think a recession is on the horizon for next year, and 24% think the economy is slowing down.[4]
The President's claims on the deficit are also worth a quick fact check.[6] The U.S. deficit was at its highest in 2009 during the Obama-Biden administration, reaching $1.4 trillion. Before the pandemic, this was the record year for the deficit.[6] In 2020, a record amount of spending was passed by both Democrats and Republicans amidst the economic turmoil caused by pandemic lockdowns.[6] A total of $3.1 trillion in federal spending, resulting in a record deficit, was recorded.[6]
It appears that the impressive job growth rate has not been enough to cause wage growth to outpace the rate of inflation.[7] This means that while the job market is improving, it is not necessarily helping the average American.[8] Using the incorrect credit or debit card could be a costly mistake.[9] We suggest you take a look at our top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.[9]
0. “WATCH LIVE: Biden to tout economic record at water infrastructure event” Colorado Springs Gazette, 3 Feb. 2023, https://gazette.com/news/us-world/watch-live-biden-to-tout-economic-record-at-water-infrastructure-event/article_3aac0a49-ad77-540e-a6c3-695b27fe4b46.html
1. “Unemployment falls in January: What did President Biden say about the jobs report?” AS USA, 3 Feb. 2023, https://en.as.com/latest_news/unemployment-falls-in-january-what-did-president-biden-say-about-the-jobs-report-n/
2. “Biden wants credit for a strong economy. Americans aren’t buying it.” The Hill, 7 Feb. 2023, https://thehill.com/finance/3845925-biden-wants-credit-for-a-strong-economy-americans-arent-buying-it/
3. “Biden's State of the Union Took Undeserved Credit for Jobs and Inflation” Barron's, 8 Feb. 2023, https://www.barrons.com/articles/biden-state-of-the-union-inflation-economy-51675894837
4. “Americans continue to suffer financially under the Biden administration” FISM TV, 7 Feb. 2023, https://fism.tv/americans-continue-to-financially-suffer-under-bidens-presidency/
5. “Job report puts the wind at President Joe Biden´s back” Prensa Latina, 3 Feb. 2023, https://www.plenglish.com/news/2023/02/03/job-report-puts-the-wind-at-president-joe-bidens-back/
6. “Biden's fantasy economy: Americans see through SOTU spin on jobs, inflation, deficits” Fox Business, 9 Feb. 2023, https://www.foxbusiness.com/economy/bidens-fantasy-economy-americans-see-through-sotu-spin-jobs-inflation-deficits
7. “Another Recession Sign: Part-Time Work Is Growing Faster Than Full-Time Work” Seeking Alpha, 8 Feb. 2023, https://seekingalpha.com/article/4576311-another-recession-sign-part-time-work-growing-faster-than-full-time-work
8. “Stimulus Update: Biden Doubles Down on Economic Progress in State of the Union Speech” The Motley Fool, 9 Feb. 2023, https://www.fool.com/the-ascent/personal-finance/articles/stimulus-update-biden-doubles-down-on-economic-progress-in-state-of-the-union-speech/
9. “Biden Boasts Historic Job Growth. Here's Why That Might Be Misleading” Nasdaq, 7 Feb. 2023, https://www.nasdaq.com/articles/biden-boasts-historic-job-growth.-heres-why-that-might-be-misleading
