President Joe Biden and the White House cheered the latest growth domestic product report on Thursday as the United States continues to grapple with skyrocketing prices.
The Bureau of Economic Analysis announced Thursday morning that the economy grew at an annualized rate of 5.7% in 2021, the fastest growth since 1984. GDP growth for quarter four of 2021 beat projections and clocked in at 6.9% annually, significantly higher than the 2.3% growth in quarter three.
POLL: CONFIDENCE IN BIDEN’S ECONOMIC MANAGEMENT IN SHARP DECLINE
“The GDP numbers for my first year show that we are finally building an American economy for the 21st Century, with the fastest economic growth in nearly four decades, along with the greatest year of job growth in American history. And, for the first time in 20 years, our economy grew faster than China’s,” the president wrote in a statement cheering the news. “This is no accident. My economic strategy is creating good jobs for Americans, rebuilding our manufacturing, and strengthening our supply chains here at home to help make our companies more competitive.”
Much of 2021’s economic growth occurred naturally, as businesses nationwide began to operate at pre-pandemic levels. However, Biden specifically attributed the progress to his policies and called on Congress to pass his stalled Build Back Better social spending bill to continue growing the economy.
“Today, Americans are finding better jobs with better pay and better benefits. Layoffs are near record lows. Companies are investing in new manufacturing lines and factories here in the United States, with recent announcements of Intel in Ohio and GM in Michigan. We’re making the future in America again, and, new small business applications have increased by more than 30% since 2019. Americans are dreaming again — believing in themselves and America,” he said. “We are finally building an American economy for the 21st Century, and I urge Congress to continue this momentum by passing legislation to make America more competitive, bolster our supply chains, strengthen our manufacturing and innovation, invest in our families and clean energy, and lower kitchen table costs.”
In 2021, we had the fastest economic growth since 1984.
The Biden economic plan is working, folks.
— President Biden (@POTUS) January 27, 2022
Because of our actions, last year we achieved:
– The fastest economic growth since 1984
– A record number of jobs created
– A record drop in the unemployment rateAmerica is on the move.
— President Biden (@POTUS) January 27, 2022
Despite Thursday’s positive signal, prices for nearly all consumer goods have continued rising into the new year.
The Consumer Price Index for December rose to 7%, marking the highest inflation levels since 1982. However, Thursday’s GDP report, coupled with a positive Labor report that saw new unemployment claims dropping to 260,000 in December, could prompt the Federal Reserve to raise rates more rapidly than expected to ease price increases.
“The economy no longer needs sustained high levels of monetary policy support,” Federal Reserve Chairman Jerome Powell told reporters on Wednesday.
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Still, Biden’s economic approval rating and voters’ perceptions of his ability to handle inflation have nosedived in recent months. The latest Pew Research Center poll found 44% of respondents were confident in Biden’s ability to craft fiscal policy, down from 56% in March of 2021. Biden’s overall approval rating in that same poll sits at 41%, 19 points lower than his 2021 high of 60%.
