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Link: https://challonge.com/iqoibb33



THIS IS A DISASTROUS ECONOMIC NUMBER FOR JOE BIDEN AND DEMOCRAT

There are a lot of bad numbers kicking around the political world for President
Joe Biden and his party in Congress at the moment, but none may be worse than
this one: -45.

That's Gallup's most recent Economic Confidence Index number, which "summarizes
Americans' ratings of current economic conditions and whether the economy is
getting better or worse." The index ranges from +100 (very good) to -100 (very
bad). The rating from May of -45 is the public's most negative view of the
economy Gallup has measured since the end of the Great Recession in early 2009.

This is a disastrous economic number for Joe Biden and Democrats

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The numbers inside Gallup's index provide more daunting news for Democrats. Just
14% of Americans said that economic conditions in the US are "excellent" or
"good." More than three times that number -- 46% -- said economic conditions
were "poor" and 39% rated them as "only fair." That's even worse than where
Gallup found things in April, when 1 in 5 Americans said that the state of the
economy was either "excellent" or "good," while 42% said they were "poor."

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Gallup's survey is far from a one-off. In the latest polling from CNN released
last month, just 23% of Americans rated economic conditions as even somewhat
good. That's down drastically from the 37% who said the same in December 2021
and precipitously from the 54% who said the same in April 2021.

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Overall, CNN's poll found that Americans' views of the economy are the worst
they have been in a decade.

Gallup's latest numbers came out on the same day that Treasury Secretary Janet
Yellen acknowledged to CNN's Wolf Blitzer that she had made a mistake when she
said in 2021 that inflation only posed a "small risk."

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"I think I was wrong then about the path that inflation would take," Yellen
said. "There have been unanticipated and large shocks to the economy that have
boosted energy and food prices and supply bottlenecks that have affected our
economy badly that I didn't -- at the time -- didn't fully understand, but we
recognize that now."

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Which, speaking as an economist, might be right and true. But in the current
political moment for the Treasury secretary to admit this publicly is a big
problem.

All of this negative news on how people perceive the economy comes as the Biden
White House -- and the President himself -- seems to have finally grasped just
how dire their political situation is on the economy.

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On Tuesday, Biden met with Federal Reserve Chairman Jerome Powell and insisted
he was laser-focused on inflation. "I'm meeting with the chairman today and
Secretary Yellen to discuss my top priority, that is addressing inflation in
order to transition from historic recovery to a steady growth for American
families," Biden said. "And my plan is to address inflation, starts with a
simple proposition: respect the Fed, respect the Fed's independence, which I
have done and will continue to do."

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And that meeting came a day after Biden published an op-ed in the Wall Street
Journal in which he laid out his plan for lowering inflation. "Americans are
anxious," Biden wrote. "I know that feeling. I grew up in a family where it
mattered when the price of gas or groceries rose. We felt it around the kitchen
table. But the American people should have confidence that our economy face."

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This is all part of a broader monthlong push by Biden and his team on the
economy and inflation, as CNN's Kaitlan Collins and Kevin Liptak reported
Tuesday. The duo wrote:

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"It's not the first time President Joe Biden and his aides have sought to renew
attention on the economy. But there remains little Biden can do on his own to
bring down prices in the immediate term.

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"Yet facing near-record low approval ratings five months before the critical
congressional contests, the President has determined another concentrated focus
on Americans' bottom line is necessary to demonstrate his attention on the
issue."
The Gallup numbers make clear the depth of the challenge before Biden. And time
is decidedly limited, with just 160 days before Election Day 2022. Unless Biden
can turn around perceptions on the condition of the economy -- and fast -- it is
going to be a brutal November for his party.

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The good, the bad and the ugly of Biden’s inflation plan

Inflation, at this point, is a problem without a presidential fix. But it is
also the issue at the forefront of voters’ minds, so no president can get away
with shrugging it off by declaring it “not my problem!”

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This is the fundamental problem facing President Biden. Most voters do not care
that inflation is an international problem, not just one afflicting the United
States. Likewise, they will not grasp that the alternative to an aggressive
fiscal stimulus plan during the pandemic was a sustained recession and high
unemployment.

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So how has Team Biden been handling this knotty economic and political
challenge? With a combination of the good, the bad and the ugly.

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Let’s start with the good. Biden is now regularly reminding voters that he is
focused on inflation. He wrote a cogent op-ed in the Wall Street Journal to
remind voters that he understands their financial pain and assured them that he
is doing whatever he can to solve it. He also met with Federal Reserve Chair
Jerome Powell on Tuesday, followed by a news briefing with Brian Deese, director
of the National Economic Council. By putting Powell front and center and telling
voters that “the Federal Reserve has a primary responsibility to control
inflation,” Biden is reminding informed voters that it is the Fed’s job to reach
a 2 percent inflation rate.

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lso in the positive column are Biden’s efforts to stress cost-containment
strategies for consumers, such as his administration’s historic release of oil
from the Strategic Petroleum Reserve and attempts to cajole ports and retailers
into fixing supply chains. Should the China competitiveness bill finally make
its way through Congress, Biden will be able to stress the advantage of domestic
chip production as well.

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But all is not rosy. In the “bad” category is the administration’s repeated
reference to deficit-cutting as an inflation-fighting tool. As The New York
Times reported, “Deficits, which are financed by government borrowing, are not
inherently inflationary: Whether they push up prices hinges on the economic
environment as well as the nature of the spending or cutback in revenue that
created the budget shortfall.”

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And while deficit reduction might make long-term policy sense (requiring
significant tax increases and entitlement reform), it’s far from clear this is a
political winner. If the point is to stress to voters that the government won’t
repeat its gigantic fiscal stimulus (thereby not boosting aggregate demand),
Biden should say so. (He might also be raising deficit reduction as a sop to
West Virginia’s Joe Manchin, the Democratic senator who still has not come
around on a vastly reduced Build Back Better plan.)

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https://www.guilded.gg/collynans-Flyers/overview/news/QlLxJEYl
https://elouise.cookpad-blog.jp/articles/721697
https://www.getrevue.co/profile/economic-number-for-joe-biden
https://www.cakeresume.com/me/economic-number-for-joe-biden
https://www.onfeetnation.com/profiles/blogs/this-is-a-disastrous-economic-number-for-joe-biden-and-democrats
https://webhitlist.com/profiles/blogs/this-is-a-disastrous-economic-number-for-joe-biden-and-democrats


The “ugly” has not yet occurred, but it is likely coming. Biden’s proposal to
forgive student debt, possibly for people with incomes as high as $150,000
($300,000 for a couple), would be utterly off-message. It would undercut the
notion that Biden is exercising fiscal restraint and would represent a reverse
Robin Hood scheme wherein poorer taxpayers, the majority of whom lack a college
education, subsidize richer, college-educated Americans.

Respected economists across the political spectrum have reiterated that this
would be bad policy and unpopular. Jason Furman, former chair of the Council of
Economic Advisers under President Barack Obama, told Newsweek: “The perpetual
deferral of interest on student loans is just about the worst policy. It is
costly, unjustified, and has added to inflation. Some targeted forgiveness of
student loans while resuming interest payments for everyone else would be a less
bad policy that would at least help ensure that the biggest beneficiaries of
college and graduate school are paying the cost of the likely very beneficial
investment they made in higher education.”

Inflation is a no-win problem for Biden. He’s not going to convince many voters
that the economy would be much worse if he had not championed the American
Rescue Plan, nor will he convince many voters that inflation is largely the
fault of the Fed’s miscalculation. The best he can probably do is keep up his “I
care" message, highlight the good jobs numbers, root for the China
competitiveness bill, avoid an egregious misstep on student loan forgiveness —
and pray Manchin finally agrees to something that would help bring down energy
and prescription drug costs.
read more..

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