Friday, July 21, 2023 12:52:15 PM
Don’t bet against Bidenomics
The National Economic Council recently put out a report showing how much emphasis has been placed on investing in parts of country previously hard hit from automation and offshoring — which happen to include many red states and regions.
But, but, the Dems turned their backs on rural, Red state, middle class America. Except, when they didn't.
Again, Kudos to MTG for helping to craft Biden's '24 campaign message:
"Joe Biden had the largest public investment in social infrastructure and environmental programs, that is actually finishing what FDR started, that LBJ expanded on, and Joe Biden is attempting to complete," she said. Unsurprisingly, Biden's campaign for president used Greene's words approvingly, flipping the context to how, yeah, Biden's done some good things for the country and thanks, Marj.
Don’t bet against Bidenomics
By Jennifer Rubin
Columnist
July 21, 2023 at 9:00 a.m. EDT
President Biden on July 7 in the East Room of the White House. (Demetrius Freeman/The Washington Post)
What caught my eye
President Biden has been on quite a roll. June numbers show inflation has been cut by more than two-thirds from its peak — down to 3 percent year-over-year from 9.1 percent. The White House calculates, “A single hour of work 12 months ago could only pay for 5.5 gallons of gas, a figure that has since risen to a bit more than 8 gallons. The increase appears to reflect a 27% drop in prices at the pump compared with a year ago, and also average wage gains of about 5%,” the Associated Press pointed out. The outdated talking point that prices are rising faster than wages needs to be retired.
Instead of political polls (in which respondents reflect their tribal identity), take a look at economic numbers that correlate to how people plan and spend their money. CNN reported: “Consumer sentiment tracked by the University of Michigan rose 13% in July, the second straight month of improvement and the biggest [month]-over-month gain since 2006, according to a preliminary reading. … The index reached its highest level since September 2021.” Consumers now expect inflation to abate (which affects purchasing decisions and can head off price hikes). “The survey showed a broad improvement across all of its components, ‘led by a 19% surge in long-term business conditions and 16% increase in short-run business conditions,’ according to the release.”
The markets responded accordingly. The Wall Street Journal reported: “Wall Street is more convinced than ever that inflation is subsiding. That’s giving investors hope that the Federal Reserve might be able to pull off what once seemed impossible: containing pricing pressures without tipping the economy into recession.” In short: “The economic data that came out this past week could hardly have been better.”
The National Economic Council recently put out a report showing how much emphasis has been placed on investing in parts of country previously hard hit from automation and offshoring — which happen to include many red states and regions. “Place-based policies that create opportunities in economically underserved communities pay off with greater economic benefits,” the report states.
“One study estimates that the economic benefits of policies that add jobs in a given place are at least 60 percent greater in ‘distressed’ regions than in ‘booming’ ones.” The report continues: “Investments in expanding access to rural broadband, for example, promote growth, employment, and education. An array of economic evidence also indicates that co-location — bringing multiple investments into communities — can reduce transportation costs and facilitate positive spillovers. These productivity and other benefits arise because clustering promotes the development and sharing of new ideas, knowledge, technology, and physical infrastructure.”
Moreover, the scale of investment is truly impressive. “Since the President took office, companies have announced over $500 billion in investments in the United States, including over $200 billion in semiconductor and electronics manufacturing and nearly $225 billion in clean energy, electric vehicle, and battery investments,” the NEC finds. “Inflation-adjusted spending on manufacturing construction overall has increased by nearly 100 percent since the end of 2021. After years of flat investment in manufacturing construction in the United States, trends are moving in a different direction.”
Bidenomics is proving to be a short-term success. (The Post reported that “Americans are still better off now than before the pandemic, with nearly 10 to 15 percent more in their bank accounts than in 2019, new checking and savings account data shows.”) More important, it has the potential to transform the economy and remake communities that had felt left behind. If so, that would be an economic and political game changer.
https://www.washingtonpost.com/opinions/2023/07/21/biden-success-ukraine-inflation/
The National Economic Council recently put out a report showing how much emphasis has been placed on investing in parts of country previously hard hit from automation and offshoring — which happen to include many red states and regions.
But, but, the Dems turned their backs on rural, Red state, middle class America. Except, when they didn't.
Again, Kudos to MTG for helping to craft Biden's '24 campaign message:
"Joe Biden had the largest public investment in social infrastructure and environmental programs, that is actually finishing what FDR started, that LBJ expanded on, and Joe Biden is attempting to complete," she said. Unsurprisingly, Biden's campaign for president used Greene's words approvingly, flipping the context to how, yeah, Biden's done some good things for the country and thanks, Marj.
Don’t bet against Bidenomics
By Jennifer Rubin
Columnist
July 21, 2023 at 9:00 a.m. EDT
President Biden on July 7 in the East Room of the White House. (Demetrius Freeman/The Washington Post)
What caught my eye
President Biden has been on quite a roll. June numbers show inflation has been cut by more than two-thirds from its peak — down to 3 percent year-over-year from 9.1 percent. The White House calculates, “A single hour of work 12 months ago could only pay for 5.5 gallons of gas, a figure that has since risen to a bit more than 8 gallons. The increase appears to reflect a 27% drop in prices at the pump compared with a year ago, and also average wage gains of about 5%,” the Associated Press pointed out. The outdated talking point that prices are rising faster than wages needs to be retired.
Instead of political polls (in which respondents reflect their tribal identity), take a look at economic numbers that correlate to how people plan and spend their money. CNN reported: “Consumer sentiment tracked by the University of Michigan rose 13% in July, the second straight month of improvement and the biggest [month]-over-month gain since 2006, according to a preliminary reading. … The index reached its highest level since September 2021.” Consumers now expect inflation to abate (which affects purchasing decisions and can head off price hikes). “The survey showed a broad improvement across all of its components, ‘led by a 19% surge in long-term business conditions and 16% increase in short-run business conditions,’ according to the release.”
The markets responded accordingly. The Wall Street Journal reported: “Wall Street is more convinced than ever that inflation is subsiding. That’s giving investors hope that the Federal Reserve might be able to pull off what once seemed impossible: containing pricing pressures without tipping the economy into recession.” In short: “The economic data that came out this past week could hardly have been better.”
The National Economic Council recently put out a report showing how much emphasis has been placed on investing in parts of country previously hard hit from automation and offshoring — which happen to include many red states and regions. “Place-based policies that create opportunities in economically underserved communities pay off with greater economic benefits,” the report states.
“One study estimates that the economic benefits of policies that add jobs in a given place are at least 60 percent greater in ‘distressed’ regions than in ‘booming’ ones.” The report continues: “Investments in expanding access to rural broadband, for example, promote growth, employment, and education. An array of economic evidence also indicates that co-location — bringing multiple investments into communities — can reduce transportation costs and facilitate positive spillovers. These productivity and other benefits arise because clustering promotes the development and sharing of new ideas, knowledge, technology, and physical infrastructure.”
Moreover, the scale of investment is truly impressive. “Since the President took office, companies have announced over $500 billion in investments in the United States, including over $200 billion in semiconductor and electronics manufacturing and nearly $225 billion in clean energy, electric vehicle, and battery investments,” the NEC finds. “Inflation-adjusted spending on manufacturing construction overall has increased by nearly 100 percent since the end of 2021. After years of flat investment in manufacturing construction in the United States, trends are moving in a different direction.”
Bidenomics is proving to be a short-term success. (The Post reported that “Americans are still better off now than before the pandemic, with nearly 10 to 15 percent more in their bank accounts than in 2019, new checking and savings account data shows.”) More important, it has the potential to transform the economy and remake communities that had felt left behind. If so, that would be an economic and political game changer.
https://www.washingtonpost.com/opinions/2023/07/21/biden-success-ukraine-inflation/
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