Bidenomics Blues: How President Biden’s Economic Plan is Falling Short for Many Americans

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President Biden is talking more and more about his economic plan, “Bidenomics,” touting how it is changing the finances of the average American for the better.

But is this reality? Are Americans better off financially than a few years ago? Recent polls show only 34% approve of his handling of the economy.

Let’s examine why there is a divide between what the President says and what people feel with their wallets.

What is Bidenomics?

At its core, Bidenomics is an economic vision centered around three key pillars: Making smart public investments in America, empowering and educating workers, and advancing racial equity. Bidenomics is based on the idea that the economy should work for everyone, not just those at the top.

Bidenomics is a bottom-up economic growth approach focusing on the middle class and working families.

The philosophy behind Bidenomics is that by investing in the middle class, you can create a stronger and more resilient economy that benefits everyone.

Middle Out vs Trickle Down

One of the key ideas behind Bidenomics is “middle-out” economics.

This approach starkly contrasts the “trickle-down” economics of the past, which focused on tax cuts for the wealthy in the hopes that the benefits would eventually trickle down to everyone else.

Another important aspect of Bidenomics is the focus on aggregate demand.

The Biden administration believes that by investing in infrastructure, education, and healthcare, you can create more demand for goods and services, creating more jobs and stimulating economic growth.

Now that you have a basic understanding, let’s dive into the disconnect between the plan and what is happening around the country.

Wages Not Keeping Up with Inflation

One major issue with the economic plan is that the wages people earn are not keeping up with the pace of inflation.

So while people were more than happy to receive pay raises from their current employer or when changing jobs, the increase did not cover the rise in prices of the things they were buying.

In the end, they are still stuck trying to make ends meet. What’s worse is that while overall inflation looks to be cooling, the things you buy every day is still experiencing rising prices or prices that remain stubbornly high.

Higher Interest Rates Hurting Housing

Another issue is that to combat high inflation, the Federal Reserve is rapidly raising interest rates.

Higher interest rates mean borrowing money for a home is more costly, putting home ownership out of reach of many Americans.

Unaffordable Housing

Tied into this issue is the skyrocketing price of housing.

This is due to several factors, including private investment firms purchasing single-family homes and putting them on the market as rentals.

But the bigger issue is that home builders have cut back on adding new inventory to the market because of economic uncertainty, mainly fears of a recession.

Plus, many Americans don’t want to sell when they have a mortgage rate of 4% or less, only to take out a new loan at 7%.

Because of a lack of houses for sale, prices rise, making owning unattainable to most.

Higher Rates Hurt Small Businesses Too

Higher interest rates don’t only hurt the housing market, they hurt small businesses too.

These businesses are the backbone of the economy.

When it costs them a lot more to borrow, they innovate and hire less.

Slowing Job Market

As a side effect of higher interest rates, job growth slows down.

This can be a good thing, as it can help to lower inflation.

But in the current economic climate, this will not happen (we’ll talk about why shortly).

With fewer jobs, those out of work remain unemployed or take a lower-paying job.

Student Loan Payments

President Biden promised student debt relief.

Instead of going through Congress and trying to get something worked out that would be legal, he decided to go another route, which ended up being unconstitutional.

Now those struggling financially will get hit with the resumption of monthly payments.

This will hurt the economy as there will be less money spent on goods and services, which can help grow the economy.

Higher Gas Prices

Have you noticed gas prices have quietly crept back up again?

The only thing that saved the administration from disaster was releasing the Strategic Reserve to bring prices down temporarily.

But this can’t be done indefinitely.

So not only are people dealing with higher prices on everyday items, but now they have to deal with increased costs at the pump too.

Sadly, prices will most likely not lower significantly because of the decision to limit gas production domestically.

Skyrocketing Insurance Premiums

Another reason why many Americans are not buying Bidenomics is rising insurance premiums.

Both home and auto premiums are skyrocketing due to the higher costs of cars and houses.

It doesn’t take a math major to understand that if lumber triples in price, an insurance company will have to raise rates to cover themselves if they have a claim on rebuilding a house.

Touting The Future Benefits

The main message from President Biden is that his economic policies are working and that to feel the full impact, all we need is time.

The problem is they aren’t working, and many fear that, in time, things will get worse, not better.

This is because the government continues to spend without thought.

Inflation will not come down as long as the government keeps pumping money into the system.

It doesn’t matter how high interest rates go or how slow the job market becomes.

When you continue to add gas to a fire, that fire keeps burning.

Don’t Forget About Clean Energy

Electric bills will rise with the Green New Deal, which would cost trillions of dollars (government spending) and significantly impact households.

Eventually, you will have to buy an electric car and might even need to consume less beef.

Americans Not Buying What The President Is Selling

As I mentioned, only 34% approve of how the President is handling the economy, and 85% say that the economy is in poor shape.

The economic plan is not working, and many wonder if it will turn out for the better in the future.

While things need to change so everyone can enjoy a better future, this option is not the solution.

People Are Giving Up on The Future

With all the craziness in the world, it’s no wonder people are losing hope.

Here are the biggest reasons why people are worried about the future, not hopeful.

REASONS WHY PEOPLE ARE GIVING UP HOPE

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