As of: March 8, 2024, 10:16 p.m
By: Bona Hyun
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Before the US election, President Joe Biden is trying to score points with the topic of economic policy - with success?
Despite the decline in inflation, people are skeptical.
Washington DC - During his State of the Union address, Joe Biden devoted a lot of time to the economic situation.
The economic satisfaction of Americans could at least decide the election.
The US economy is actually not in a bad situation, the situation on the labor market is particularly good.
But many voters see the economy in poor shape despite growth and low unemployment.
Biden speaks about economy at State of the Union address
First, a look at the situation: According to the Federal Reserve (Fed), the US economy has recently grown moderately.
Economic activity increased slightly in January and February, the Fed said in its “Beige Book” economic report published on Wednesday (March 6).
The survey ran until February 26th and was based on business contacts from the regions.
There were also signs that the labor market had continued to ease.
Joe Biden is also trying to score points again on the subject of the economy - with success?
© Mark Schiefelbein/dpa
Inflation in the USA – apparently expected to decline in 2024
Inflation is also said to have fallen.
According to a survey from November 2023, the Fed experts expect an inflation rate of 2.4 percent for the full year 2024.
This means a decline of 0.1 percentage points compared to the previous forecast for September 2023, writes
Wirtschaftswoche.
The current World Economic Outlook from November 2023, however, shows different results.
The Organization for Economic Co-operation and Development (OECD) predicts that the US inflation rate will fall to 2.8 percent in 2024.
Biden wants to score points with economic issues – will falling inflation suit him?
But in Biden's opinion, the latest development does not seem to have resonated with people in the USA.
According to surveys, many people are frustrated by high prices in supermarkets.
Biden argued that the economic stimulus he had put in place would not be felt immediately.
“It takes time, but the American people are starting to feel it,” Biden said.
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However, the satisfaction is probably also related to the fact that people are disappointed with the way the topic of the economy is being handled, analyzed the
Wirtschaftswoche
.
The strong focus on the economy is a risk for the White House.
Last year (2023), Biden tried to score points in the beginning of the election campaign with the topic of the economy - keyword “Bidenomics”.
It is a campaign by the president to showcase his successes in economic policy.
“When I came into office, the pandemic was raging, the economy was reeling,” the Democrat said in a 2023 speech to a union audience in Chicago.
“Since then we have created 13.4 million new jobs.
More new jobs in two years than any previous president in four years.”
Biden formulated major economic goals in his speech
In his most recent speech, Biden formulated major goals for economic policy.
The president advocated tax increases for high earners and wants to raise corporate taxes.
The aim is to combat national debt and at the same time make the tax system fairer.
“A fair tax system allows us to invest in the things that make a country great: health care, education, defense and more,”
Wirtschaftswoche
quoted the president as saying.
He also promised to reduce the cost of prescription drugs.
None of these rules would cost families making less than $400,000 a year a penny, Biden said.
Despite the economic boom, the majority of people see Trump ahead of Biden.
He is also currently struggling with image problems; Biden's popularity ratings are in the basement.
Surveys also show: Many people want neither Biden nor Trump anyway. (bohy with dpa)