As the Biden administration continues touting its economic plan “Bidenomics,” recent data is causing some major backlash. On Thursday, the July Consumer Price Index, which measures inflation, skyrocketed to 3.2%, and Core CPI increased by an even more alarming 4.7%, which is the largest jump in thirty-eight years.
Amidst this data, the White House has remained unruffled and appears steadfast on its economic agenda, with President Joe Biden delivering a speech in New Mexico yesterday promoting his economic policies. However, economists and job creators are increasingly concerned that the Biden administration’s economic plan may cause further harm to our economic recovery.
“Inflation hits small businesses especially hard,” said Alfredo Ortiz, President and CEO of Job Creators Network. “Our poll showed small business sentiment fell significantly last month.” Ortiz then shared details about the Job Creators Network’s American Small Business Prosperity Plan, which he believes will end the government’s reckless spending that causes higher prices, as well as turbocharging energy development to bring prices down.
Adding to the economic woes, U.S. credit card debt is also at an all-time high. According to a study in CNBC, Americans have added $370 billion in credit card debt in the past 13 months, with the average household owing a whopping $8,398 in card debt.
Given the precarious state of the economy, many economists have called for the federal government to take action, even as some argue that Bidenomics could have negative long-term effects.
“The Biden Administration should focus on developing policies that address the underlying structural causes of disinflation, such as the lagging productivity growth, an aging population, slower economic growth, and deflationary pressures emanating from China,” said Mark Zandi, chief economist at Moody’s Analytics.
Others have warned that the current approach could prove disastrous in the long run.
“I think the Bidenomics approach is the wrong approach to take, especially given the current economic environment. We need to focus on pro-growth policies that focus on boosting economic growth and job creation instead of just inflating the money supply,” said economist David R. Kotok.
As the national debt continues to rise, job creators and economists remain on edge, waiting for further data to assess the effects of Bidenomics in the long term. Only time will tell whether the White House’s economic policies will pay off.
BIDENOMICS: Just two percent of Americans say economic conditions are “excellent.”
Half of Americans say economic conditions are “poor.” pic.twitter.com/QhNMUiSks3
— RNC Research (@RNCResearch) August 10, 2023
