Bidenomics: A Controversial Agenda that Persists Amidst Democratic Discontent
Despite facing opposition from some Democrats, Bidenomics remains steadfast as President Biden heads to Pennsylvania, a battleground for his economic agenda
President Joe Biden's first official event of the year in Pennsylvania will mark his 33rd visit to the commonwealth since taking office. The focus of the event will be on "Bidenomics," a phrase that has sparked controversy among some Democrats since last summer. The president and his aides have strategically sought to claim more credit for the economic gains made under his leadership.
Despite the improving economy and the proximity of his Republican rival to the nomination, Biden shows no signs of abandoning the "Bidenomics" label, even as others in his party steer clear of it. This Friday, Biden will proudly promote "Bidenomics" in Allentown, Pennsylvania, a former industrial center now experiencing a resurgence, with the White House citing a 30-year low in unemployment.
During his visit, he will meet with small business owners who, according to the White House, have benefited from Biden's policies. The administration is highlighting what they call a "small business boom," with 16 million new business applications filed since the beginning of his administration.
Biden's aides are optimistic that "Bidenomics" will eventually become a rallying cry for Democrats as economic gains start to impact American households and the public perception of the economy. They hope that investments in infrastructure, technology, and job creation will begin to take hold. However, they also acknowledge that changing public perception of the economy will take time.
"The president's economic policies are yielding positive outcomes such as increased real wages, employment, and wealth gains," stated National Economic Council director Lael Brainard on Thursday. "However, there is still more to be done in terms of reducing costs."
According to the Consumer Price Index data released on Thursday, consumer prices saw an annual increase of 3.4% in December, marking a notable decline from the previous year. Despite this, prices remain considerably higher than pre-inflation levels during the early stages of President Biden's term, with inflation being a lingering concern in the political sphere.
Biden has pushed his team to demonstrate how his policies are positively impacting people's lives and reducing expenses. Despite a thriving economy, he is frustrated by low approval ratings. His visit to Allentown aims to showcase a community that has recovered from economic setbacks and the pandemic, with unemployment now at 3.9%.
A long fight to change the economic narrative
As a part of a deliberate strategy to tailor Biden's policies to particular communities - strategically targeted in a crucial electoral battleground - White House officials are confident that this approach can resonate more effectively with voters.
Emphasizing the growth of small businesses in Allentown can aid Biden in promoting lower consumer prices, according to a senior administration official. They highlighted how a thriving business environment can boost competition and reduce costs for consumers.
"It's all interconnected, isn't it? More small businesses and entrepreneurship mean more competition in the economy, which ultimately leads to lower costs. So, I don't see it as an either-or situation. I think it's a combination of all these factors," the official stated.
"We have a lot more work to do in lowering costs," the official continued. "The president is deeply committed to this and is actively working to reduce costs for families to give them more financial flexibility. That's why we have remained so focused on reducing costs."
Biden's aides have found hope in the fact that increasing earnings are finally outpacing inflation. The president and his team are keen on highlighting that the predicted recession never actually happened. They have also pointed to improvements in various consumer confidence measures as evidence that Americans are starting to have a more positive outlook on the economy.
Despite signs of easing inflation, increased hiring, and boosted consumer confidence, there has been no notable improvement in how Americans perceive Biden's handling of the economy. This sentiment is echoed in Pennsylvania, where Biden is scheduled to make his economic case on Friday. According to a recent survey by Quinnipiac University, only 33% of registered Pennsylvania voters rated the economy as excellent or good, while 66% rated it as not-so-good or poor. The poll also revealed that 44% of respondents believe the US economy is deteriorating, 29% think it's staying the same, and 26% believe it's improving.
Not a popular slogan
Biden found a glimmer of good news in the Quinnipiac results, with the poll showing him at 49% support compared to 46% for Trump in a general election matchup, within the margin of error. This marks "the first time in Pennsylvania that Biden has a numerical advantage over Trump in the 2024 presidential race," according to the pollster.
Some of Biden's fellow Democrats have expressed ongoing concerns about the Bidenomics approach. While they applaud Biden's achievements, they feel that his focus should be on highlighting the dangers of a potential second Trump presidency, a message the president has recently emphasized in political speeches. On the other hand, some Democratic allies suggest that Biden should focus more specifically on addressing rising prices, an issue that White House aides recognize as a top concern for Americans.
The public research firm Blueprint has released data urging Biden to focus on a tighter message regarding inflation and lowering prices, as these are the most important issues for voters. The firm also highlighted specific policies, such as investing in agricultural supply chains, reducing the deficit, and targeting "junk fees," as resonating with the public.
According to Blueprints chief pollster Evan Roth Smith, it is essential for Biden to better promote his anti-inflation agenda. Despite his policy victories in combating inflation, they are not receiving the attention they deserve. Smith believes the president should seize every opportunity to highlight these policies and reassure the public that he is actively addressing their concerns about rising prices. This approach, Smith argues, would be more effective in resonating with the public.
The White House stated that the Blueprint data provides evidence of the public's support for Biden's policies.
According to White House spokesman Michael Kikukawa, "The recent elections demonstrate that Americans favor these policies over trickle-down MAGAnomics, which increases healthcare and utility costs for families while providing tax cuts to the wealthy and special interests. We are committed to spreading awareness of the President's highly popular achievements to all Americans."
Some Democrats are hesitant to claim responsibility for a growing economy that is still seen unfavorably by many Americans.
Last week, CNN revealed that Rep. Steven Horsford, chair of the Congressional Black Caucus and an early supporter of Biden in the 2020 election, has been urging White House and reelection campaign officials, including top Biden adviser Anita Dunn, to steer away from using the term "Bidenomics." Horsford believes that the focus should be on appealing to voters rather than centering the phrase around the president.
Several other Democrats have also shared these sentiments, often in private, regarding the efficacy of the phrase. Even President Biden initially expressed doubts when his team was discussing the term last summer, hesitant to associate himself with an economy that was still uncertain at the time.
When it was first introduced, the president himself admitted that he was unclear on the exact definition of the word.
"We have decided to ditch the theory of trickle-down economics and embrace what the press is now labeling as Bidenomics," he proclaimed at a political rally alongside union members in Philadelphia. "I'm not entirely sure what it entails, but it's certainly producing positive results."
Since then, Bidens team has been diligently working to solidify a clear definition - using multi-part social media posts and online photos of the president explaining the theory on a whiteboard. However, one thing remains unchanged from his initial comment: Bidenomics is defined, in part, by what it is not.
Biden frequently emphasizes his economic accomplishments in his speeches, often highlighting the contrast with the GOP. He criticizes Republicans who initially opposed his infrastructure plan but are now claiming credit for the projects in their districts that were made possible by the measure. Additionally, he has called out his potential Republican opponent, Donald Trump, for his tax cuts for the wealthy and lack of effort in securing new infrastructure investments.
As Biden gears up for his reelection campaign, several White House members are transitioning to his campaign team, including one individual critical to the success of Bidenomics: Mitch Landrieu, the key figure in implementing the new infrastructure law from the West Wing. Officials have confirmed that Landrieu is anticipated to become a co-chair for the Biden campaign.
