Staff Reports
In a recent State of the Union address, President Biden boasted about the country’s falling inflation and low unemployment rates. But hold on just a minute! Let’s take a closer look at what he’s saying.
State of the Union 2024: What to know about Biden’s claims about inflation and unemployment https://t.co/LKUHODl0P6 via @dcexaminer
— MarkWhittington (@MarkWhittington) March 8, 2024
First, let’s talk about inflation. Biden proudly declared that inflation has dropped from 9% to 3%, making it the lowest in the world and trending even lower. While it’s true that inflation has decreased under his watch, it’s important to note that much of this improvement can be credited to the independent Federal Reserve’s efforts to ease price pressures by raising interest rates.
But wait, there’s more to the story! Some folks, including those pesky Republicans and some economists, argue that the massive federal spending during the pandemic, including the Democrat-backed American Rescue Plan Act, actually contributed to the inflation problem. And let’s not forget about former President Donald Trump, who also flooded the economy with stimulus money during the pandemic. It seems like both parties might have a hand in this inflation mess.
And what about Biden’s Inflation Reduction Act? Despite its promising name, experts say it did little to address inflation in the near term. In fact, it was estimated that the act would have a negligible effect on inflation during 2022 and 2023. Looks like Biden’s legislation didn’t quite live up to its name.
Now, let’s move on to jobs and unemployment. Biden proudly announced that the country has seen 15 million new jobs in just three years, a record-breaking feat. The unemployment rate has also dropped to historic lows, hovering between 3.4% and 4% for the past 24 months. These numbers certainly sound impressive, but hold on to your hats because there’s more to consider.
When Biden took office, the economy was still millions of jobs short of where it was before the pandemic. Many of the jobs that have been added during Biden’s presidency were simply positions that were lost due to the pandemic and then regained during the reopening. Plus, the employment-to-population ratio is still lower than it was prior to the pandemic, indicating that the job market hasn’t fully recovered.
So, while President Biden may be patting himself on the back for the state of the economy, it’s clear that there is more to the story than meets the eye. As we look ahead to the future, it’s important to consider the full context of the economy and not just the rosy picture that Biden painted in his State of the Union address.
