President Joe Biden recently touted the state of the U.S. economy on social media. The latest job report from the Labor Department showed the economy added 517,000 jobs in January, far exceeding economists’ expectations. The rate of unemployment dropped to 3.4 percent which is the lowest since 1969. 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.
Wages have risen by 10.1% over the past two years, while the CPI has risen by 14%. This means that Americans’ real incomes were cut by 3.9% over that time. Despite this, Biden celebrated that wages are up. But this is hardly something to brag about. A CBS News-YouGov poll found that 33% of surveyed Americans view the economy as “good” while 61% view it as being “bad.”
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. 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. A staggering 38% of Americans think a recession is on the horizon for next year, and 24% think the economy is slowing down.
The President's claims on the deficit are also worth a quick fact check. 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. In 2020, a record amount of spending was passed by both Democrats and Republicans amidst the economic turmoil caused by pandemic lockdowns. A total of $3.1 trillion in federal spending, resulting in a record deficit, was recorded.
It appears that the impressive job growth rate has not been enough to cause wage growth to outpace the rate of inflation. This means that while the job market is improving, it is not necessarily helping the average American. Using the incorrect credit or debit card could be a costly mistake. 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.
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/
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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