Is Bidenomics working? Only if you like high inflation

May 6, 2024

Bidenomics is failing, and President Biden and his allies in Congress are trying to sweep his failure under the rug.

The latest Bureau of Economic Analysis (BEA) report confirms what all Americans know, but Biden wants you to forget: Bidenomics means high prices and a slower economy.   

For years, the president and his apologists in Congress have never missed a chance to cherry-pick data in economic reports to try to spin the American public into believing that Bidenomics is working. Unsurprisingly, Biden has remained conveniently quiet about this new report.

According to the BEA, the American economy grew a mere 1.6% during the first three months of 2024, well below what many experts forecasted. Not only is the economy growing at a turtle’s pace, but prices keep rising above the Federal Reserve’s targets, with the Consumer Price Index at 3.5% over the last year.

As prices keep rising too fast, the Fed is unlikely to cut interest rates and may increase them further. This will make it more expensive for businesses and people to invest in the economy and could make mortgage rates even more costly. 

Biden has spent years trying (and failing) to spin the way out of his failed economic policies, bragging for months about low unemployment rates and slowing inflation. Of course, he conveniently forgets inflation got to record levels under his watch and Americans are paying $11,400 more to keep the same standard of living as they did four years ago.

Biden’s attempts to frame Bidenomics as a success are not fooling anyone. 53% of Americans disapprove of the president’s handling of the economy, according to the latest YouGov poll.

Bidenomics fueled inflation and is building barriers to the American economy

The Q1 report is just more evidence that Bidenomics is terrible economics. Prices continue to rise thanks to the president’s policies, and onerous government regulations are holding the economy[HK6] [DC7]  back.  

The president might blame Putin, businesses, and even Republicans for inflation, but if he wants to blame the guy guilty for stubborn inflation, he should look at himself and his allies in Congress.

Between 2020 and 2024, the U.S. government has printed much more dollars than the markets could handle. While a decent chunk of that money came in 2020 as a response to the pandemic, Biden and his friends added nitroglycerin to the fire by authorizing an eye-opening $5.5 trillion (about $17,000 per American) in new spending during his time in office. So far.

The president is not the only Washington politician responsible for this spending spree. Senators Tammy Baldwin (D-WI), Sherrod Brown (D-OH), Bob Casey (D-PA), Jacky Rosen (D-NV), and Jon Tester (D-MT) all voted for pro-Bidenomics legislation —like the CHIPS and IRA Acts— that doled out billions of dollars to corporate cronies, added trillions to the national debt, and helped make live unaffordable for millions of Americans. 

Like any other good, money’s value depends on supply and demand. Inflation happens when the federal government prints more dollars than the market can absorb; your money will buy you less than it used to.

The markets could not handle the mountains of freshly minted cash from the U.S. government, and inflation skyrocketed to levels not seen since the worst days of the 1970s stagflation.

While inflation is no longer rising at 9% yearly, prices are 19.4% higher than they were four years ago, and they keep rising well above the Fed’s inflation targets. Regretfully, actual earnings are not keeping up with Biden’s inflation.

Americans are well into year three of Biden’s economic policies, and the verdict is clear for most of the country: Bidenomics is not working.

If President Biden thinks Americans will not hold him and his political allies accountable for their mismanagement of the economy, he is sorely mistaken.

Learn more about how Bidenomics is failing America here.