UNITED STATES: U.S. President Joe Biden attempted to lift Americans’ dour mood about the economy with what his advisers touted as a significant speech on Wednesday, an effort to shore up a top political vulnerability as he seeks re-election.
Biden, whose two-year stint as president has witnessed a remarkable return from the COVID-19-driven recession, has yet to watch his public approval ratings slump under the weight of voter fears about the direction of the economy.
A surge in job opportunities and reduced unemployment rates have been seen as favourable outcomes. However, concerns about inflationary pressures and the subsequent impact of rising interest rates, particularly in sectors like housing, have heightened fears of a recession.
In Chicago, the American president reiterated his vision for middle-class prosperity. That entails taxing the wealthy to fund investments in sectors essential to the country’s security, including semiconductors; training employees; and enhancing economic competition, stated Biden.
This vision represents a significant departure from an economic paradigm that has long failed the middle class in America, according to Biden.
According to a recent Ipsos poll conducted this month, over half of Americans express disapproval of President Biden’s handling of his job. Furthermore, only 35% of respondents approve of his stewardship of the economy, which voters consider to be their top issue.
As per reports, in terms of economic performance, the U.S. economy witnessed a 1.3% annualised growth rate in the first quarter, and as of May, the unemployment rate stood at 3.7%. However, during this period, inflation experienced a year-over-year increase of 4%.
White House aides perceive these inflation figures as elevated, but they are optimistic about the direction they are heading under Biden-supported policies. These policies are designed to tackle deficit spending and reduce costs across various products, ranging from insulin to concert tickets.
However, Federal Reserve officials have stated that they believe they still have “a long way to go” in order to get inflation back to healthy levels. They also believe they may need to hike borrowing costs further, which might trigger a recession.
Aides are coining the word “Bidenomics” to describe the Democratic president’s strategy, setting it apart from the tax-cutting philosophy formerly known as “Reaganomics” due to its association with the Republican former president Ronald Reagan, who left office in 1989.
The U.S. president said that he is not here to declare victory on the economy. I’m here to explain that we have a plan that is drastically improving the situation and there is still more to do, he said.
He said that the next step would be to close tax loopholes for the wealthy in order to establish a fair federal tax system.
It’s unclear whether his message will be heard. Before the Fourth of July vacation, 16 months before election day, and as Republicans sort through a wide field of potential candidates led by former President Donald Trump, the midsummer address was given.
Biden’s last significant address to the nation, a prime-time Oval Office speech on June 2 trumpeting a bipartisan compromise to avert the debt limit issue, barely attracted 6.2 million viewers and was picked up by two of the major U.S. broadcast networks, as per research firm Nielsen.
The main cable news networks aired Biden’s afternoon speech on Wednesday. In the initial months of the race, Trump emphasised inflation as a prominent aspect of his criticism of Biden.
Ronna McDaniel, the chairwoman of the Republican National Committee, stated that under Biden, Americans are worse off, with prices continuing to rise and hardworking Americans paying the price for disastrous “Bidenomics.”
Biden is also anticipated to participate in a fundraising event while he is in the Chicago region prior to a federal deadline for fundraising records. He is not anticipated to face a tough challenge for his party’s nomination.
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