If you shopped at your local Trader Joe’s recently, then President Joe Biden’s tweet on Tuesday might have taken you by surprise. “The fact is America is in a stronger economic position today than just about any other country in the world,” he said.
Some would disagree.
“Everyone’s bank accounts say otherwise,” one person commented.
As a person living through everyday life, one can observe the steady price increases of food, gas, and the cost of living. The fact is America is headed toward a recession.
A Wall Street Journal-NORC survey found that 83% of those who responded classified the nation’s economic standing as “poor” and “not so good.” Though the national unemployment rate is at an all-time low, dropping to 3.6%, it doesn’t mask the fact that consumers regard the cost of living as “the biggest threat to their financial security,” according to CNBC.
When asked about the WSJ survey, White House press secretary Karine Jean-Pierre said: “The economy is in a better place than it has been historically. And so, we feel, here at this administration and other experts as well, is that — we feel that we are in a good position to take on inflation.”
But historically, there are similarities in our economy dating back to the 1970s when former President Jimmy Carter was in office.
The Carter administration faced high numbers of inflation and unemployment, getting up to 14% by 1980. Action was taken toward the end of the ’70s to alleviate the economic impact. Congress enacted the Humphrey-Hawkins Act of 1978 with the goal to “reduce long-term unemployment; improving coordination with private business; reducing youth unemployment.” Though Carter was able to decrease the unemployment rate, the “great inflation” crisis marked his presidency.
Similarly, the Biden administration has dealt with an inflation crisis, reaching 8.3% in April 2022. This significant impact on the economy has not seen a real change in the Biden administration, yet the president seems to believe the country is in a strong economic position.
“Recession risks are high, uncomfortably high, and rising,” Mark Zandi, the chief economist at Moody’s Analytics, said.
The Biden administration has to come to terms with the fact that what it’s doing is not working. Its plan of action is a poor attempt to remedy the economic decline we are facing. So, is America headed toward a recession?
In contrast, other economists would disagree. Beth Ann Bovino, the chief U.S. economist for S&P Global said, “Near term, the U.S. economy is holding up rather well despite the trouble abroad and the high prices at the checkout stand.”
If that is true, how long does the United States have to hold up through this economic decline before we take significant steps to solve the problem?
To say we are living at a time that is historically economically stronger is not entirely true. If you visit your local Trader Joe’s or your nearest gas station and see the price for fruit or a tank of gas, it will show that America may not be in the strongest economic position right now.
Esther Wickham is a summer 2022 Washington Examiner fellow.
