President Joe Biden wants to advertise his financial success, according to information from the White House. He even adopted the slogan “bidenomics” – a term most people consider to be ridicule or policy failure.
On the other hand, unemployment is low and millions of jobs have been created in the last two years. Reality check: Virtually all of these jobs already existed during the Trump presidency, but are just restoring jobs lost during the COVID-19 lockdown (mostly blue states). In fact, there are still five states that still have fewer total jobs than they did before the pandemic hit. It’s some recovery. (Related: Adam Addzeshewski: The American Taxpayer’s 4th of July Victory)
If the economy is doing so well, why don’t Americans feel love? A follow-up poll found that two-thirds of Americans still believe the country and economy are headed in the “wrong direction.” there is something is going wrong. Here’s why.
First and foremost, the economic reality is that inflation has outpaced wages in 22 of the last 25 months for most households. So how can the White House claim that workers’ wages are rising?
Here’s a trick that the people who calculate Biden’s numbers are doing: The White House has been touting nominal hourly, or pre-inflation, wage increases since Biden took office. That part of the story is true. But, as in the 1970s, with double-digit inflation, nominal wages rose, but prices rose too quickly, putting households under economic pressure. Today, prices are rising even faster, so you buy less when you earn more. Average hourly wages have increased by $3 an hour for him pre-inflation, but have decreased by just over $1 an hour in terms of purchasing power.
Biden has touted recent cuts in gas prices, which were about $5 a gallon this time last year. But drivers still pay about 80 cents a gallon more than they did under Donald Trump.
Why is private consumption so high? One answer is that consumer debt continues to rise. With credit card debt just recently surpassing $1 trillion, more consumers are delinquent on their payments. Now they have to pay high interest rates to maintain their standard of living and are entangled in the financial web.
Then there is the burden of Biden regulation. In this administration, it seems that the trick is to regulate if it moves. Economist Casey Mulligan found that the cost of regulation per household decreased by about $2,000 under the Trump administration, which reduced the number of new rules and proclamations. Under the Biden administration, those costs increased by $5,019 annually. This is a federally regulated octopus hidden tax.
Next, the government debt burden now stands at $31.8 trillion, up about $6 trillion since Biden took office. The coronavirus crisis ended two years ago, so why are we in debt so much? That debt burden is expected to rise to $50 trillion in 10 years, even as the White House and Congress pretend to cut it. In the last 12 months alone, federal borrowing has exceeded her $2 trillion. This is not progress.
As for economic growth, not so much. Over the past five quarters, the U.S. economy has lagged at 1% growth, a third of what we expect in the post-coronavirus era. (Related: Betsy McCawgy: Businesses watch out — price controls start when the Left gets its way)
Finally, there is a general sense of hopelessness and despondency, a palpable darkness that has engulfed the country. Worker productivity is declining. Children’s test scores are at their lowest in 50 years. We see more and more desperate deaths. Drug use is on the rise. The number of young Americans saying “I want children,” “I want to believe in God,” or “I want to believe in my country” is decreasing. This is nothing like Ronald Reagan’s American Morning. It feels like twilight. The deadline for the hefty bill against Biden is fast approaching, and it feels like it will take a long, long time to pay it off. President Reagan famously said, “Strong at home, strong abroad.”
Today we are neither.
Mr. Biden wants to be held in high esteem for his economy and his presidency, but few Americans want to praise him for his “achievements.”
Stephen Moore is a Senior Fellow at the Heritage Foundation and co-founder of the Commission for Unleashing Prosperity. His most recent book is “Govzilla: How the Relentless Growth of Government Is Embroidered Our Economy.”
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