Sarah Travers
US President Joe Biden delivered a spirited State of the Union address, touting the United States’ economic performance under his leadership as the “envy of the world.” Biden highlighted achievements such as record job creation and historically low unemployment rates, emphasizing the strength of the economy during his tenure.
Despite facing initial challenges inherited from the previous administration, Biden pointed to significant progress, including the creation of fifteen million new jobs in just three years. Unemployment rates plummeted to 50-year lows, with a record 16 million Americans launching small businesses, signaling optimism and resilience in the economy.
While some critics debate the impact of job losses during the COVID-19 pandemic on record job creation figures, overall economic indicators paint a positive picture. The US economy outpaced other advanced economies, with a GDP growth of 3.1% in the past year, defying earlier recession predictions.
Inflation, a persistent concern for consumers, has been kept in check, currently standing below 3%. However, despite these successes, polls suggest that public perception of the economy remains less optimistic than the data indicates. A New York Times-Siena Poll revealed that 51% of respondents rated the economy as “poor,” while only 26% considered it “good” or “excellent.”
Moreover, former President Donald Trump retains higher credibility among voters in handling economic matters, according to an NBC News poll. 55% of respondents favored Trump’s economic stewardship over Biden’s, reflecting a lingering trust deficit for the current administration on economic issues.
Biden acknowledged the importance of economic fairness and inclusivity in his address, advocating for policies that benefit all Americans. He proposed tax hikes on corporations and wealthy individuals, emphasizing a commitment to building an economy from the “middle out” and “bottom up,” rather than top-down approaches.
With the US presidential elections looming, Biden faces the challenge of reshaping public perception of the economy to secure a second term. Traditionally, economic performance plays a pivotal role in shaping voters’ decisions, as famously encapsulated by the phrase, “It’s the economy, stupid.”
As the campaign intensifies, Biden has approximately eight months to bolster confidence in his economic stewardship and convince voters of his vision for a fairer economy. Failure to do so could jeopardize his chances of reelection, particularly as polls indicate Trump’s lead in perceptions of economic management.
