The December jobs report was a win for President Biden just in time for the start of an election year. The addition of 216,000 jobs to the economy and a steady unemployment rate of 3.7 percent showed a “soft landing” for the economy, so is Bidenomics working?
A Pleasant Surprise
December’s surprising job growth surpassed all expectations and put to bed any doubts about the resilience of the labor market under the Biden administration, despite Republican critics claiming that Bidenomics is “failing.”
New Jobs and New Optimism
The report showed that Bidenomics has helped to add 216,000 new jobs to the economy. The unemployment rate now remains low at 3.7 percent, giving newfound hope to economists.
Biden’s Approval Ratings
A November Gallup poll showed that President Biden still has low economic approval ratings, with only 32 percent of Americans expressing confidence in his handling of the economy.
Biden’s Increase of Approval
This puts President Biden’s overall approval rating at just 39 percent, but while this is a low number, it’s an improvement on the month before by 2 percent.
A Year of Debate
In 2024, President Biden is challenged by a double issue, as he battles criticism for his handling of the economy and addresses persistently low approval ratings.
Optimism Among Policymakers
The December jobs report fueled confidence among policymakers, hinting at the possibility of a “soft landing” for the U.S. economy, according to Secretary of the Treasury Janet Yellen.
Defying Predictions of Recession
There were strong predictions of a 2023 recession and interest rate hikes back in 2022, but instead, the economy experienced a rebound, with higher job numbers and steady wage growth.
Numbers in Question
The strong job numbers, coupled with a 4.1 percent wage growth over the past year, provide evidence supporting Yellen’s statement of a “soft landing.”
Hope for Continued Growth
Yellen put this success down to the resilience of the American people as well as President Biden’s efforts to provide incentives for economic growth.
Down to the American People
“The American people did it. The American people go to work every day, participate in the labor market, form new businesses,” Yellen insisted.
Praise For Biden’s Approach
Yellen gave credit where credit’s due to the President, “But President Biden has tried to create incentives that give Americans the tools they need to help this economy grow.”
Investor Confidence
Investors also showed optimism in financial markets, Stephen J. Rich, head of Mutual of America Capital Management, spoke of the positive impact of consecutive strong job reports and consumer spending while at the same time easing inflation.
Rich’s Confidence in “Soft Landing”
“Two consecutive positive jobs reports and solid consumer spending amid easing inflation are welcome news both for consumers and investors. A soft landing for the economy appears much more likely,” said Rich.
A Claim of Success
Democrats took the opportunity to claim success, Representative Richard Neal spoke of sustainable job growth and the success of growing the economy from the “bottom-up.”
Neal Insists Bidenomics “Is Working”
“Another strong report to round out a year of sustainable job growth, and growing the economy from the bottom-up and middle-out is the new pro-worker, pro-growth strategy. By every measure, it’s working,” Neal insisted.
Republican Criticism
Republicans are focusing on the cost increases faced by Americans, arguing that the challenges posed by four-decade-high inflation and rapid rate hikes by the Fed have ruined the economy.
Working Families Bearing Brunt
Ways and Means Chair Jason Smith strongly criticized the administration’s continuation of “Bidenomics” policies, causing financial struggles for working families.
Smith’s Criticism of Bidenomics
“As the calendar turns to 2024,” Smith began, “working families see an administration pushing the same failed policies of ‘Bidenomics’ that have caused such financial and economic struggle, frustration, and anxiety.”
Democrats Hopeful Pitch
While inflation remains a concern, Democrats expressed hope that slowing price growth will strengthen their pitch to voters.
Positive Trends
Wage increases, matching inflation rates, and a 4.1-percent annual growth in average hourly earnings make Democrats optimistic about the future.
Biden insisted that gas prices are also another one of his successes, “Right now, the average driver in America is spending over $100 less than if gas prices had stayed at their peak.”
The Future of Bidenomics
While things seem to be ticking in the right direction, there will always be holes in the economic strategy that Republicans will look to pounce on.
The post Assessing Biden’s Economic Policies: Latest Study first appeared on Swift Feed.
Featured Image Credit: Shutterstock / Consolidated News Photos.