“Bidenomics”: the expression with which Biden seeks to win over voters

“Bidenomics” is the term with which President Joe Biden hopes to convince voters that his economic policy has succeeded, heading into next year’s presidential election.

hundreds of billions

By coining the term “Bidenomics”, Biden’s advisers hope to make visible the achievements of the government of the Democratic president who, at 80, will seek re-election despite a fairly low popularity rating.

It is about promoting the initiatives launched during the first two years of the current government, before Biden lost control of the House of Representatives.

First there was the “American Rescue Plan,” a colossal $1.9 trillion package voted in shortly after the Democrat’s inauguration to help the pandemic-hit economy.

Then came a program of infrastructure works: bridges, highways, internet networks… Total: 550,000 million dollars.

The “Inflation Reduction Act”, or inflation reduction law, is a US$ 430,000 million program aimed at accelerating the energy transition but above all to promote “Made in America” ​​products. It also reduces some family health expenses.

The “CHIPS Act” is the latest initiative on the list, which for US$ 280,000 million over 10 years aims to encourage the installation of state-of-the-art technological power plants in the United States.

Reactivation

“The president’s strategy encouraged the greatest recovery of all the world’s major economies”: such is the message launched by the White House in a recent memorandum.

The IMF expects the United States to grow 1.6% this year, double that of the Euro Zone.

Unemployment fell back to its pre-pandemic levels, below 4%. The data from the White House is that 14 million positions were created during Biden’s term.

But, according to a CBS News/YouGov poll from early June, 63% of the population believes that the economy is doing badly or very badly.

Biden vs. Reagan

The term “Bidenomics” is a direct reference to “Reaganomics”, Ronald Reagan’s economic program in the 1980s, but with a different logic.

Reagan applied liberal reforms, with tax cuts and fiscal austerity. Biden, meanwhile, points to a “reconstruction” of the economy “from the bottom up”, which means supporting the demand of the middle and lower classes instead of betting on businessmen and great fortunes sustaining the recovery.

risk strategy

Betting on the economy and employment has its risks.

The United States, after a strong recovery from the coronavirus pandemic, is not safe from a recession, which could be a boomerang for Biden.

The context of high interest rates to combat inflation is a sought-after brake on demand. Inflation is gradually moderating, but rates, according to the Federal Reserve, could continue to rise.

According to a Pew Research Center survey, the cost of living is the top concern for Americans.

Source: AFP