Achievements of Joe Biden
In the first year of President Joe Biden's administration, the economy has shown signs of remarkable recovery. The US GDP is at an all-time high, and unemployment remains close to its lowest level for decades, with unemployment currently standing at 4.3%.
Biden's economic policies, known as Bidenomics, have been instrumental in this recovery. Central to Bidenomics is the return of industrial strategy and the use of fiscal stimulus to promote a tight labor market. This approach has led to the creation of 15 million jobs, including 800,000 in domestic manufacturing.
One of the key legislative efforts under Biden's presidency is the Infrastructure Investment and Jobs Act, which authorizes $1.2 trillion of long-term federal spending on roads, bridges, water systems, and other infrastructure projects. This investment is expected to boost economic growth and create jobs for years to come.
Another significant law passed during Biden's term is the American Rescue Plan Act, which added up to $1.9 trillion in fiscal stimulus at the start of his term in March 2021. This stimulus has helped to cushion the economic impact of the Covid-19 pandemic and stimulate economic growth.
Biden's economic policies also prioritize investments in infrastructure, childcare, manufacturing, and green energy. The Inflation Reduction Act, another key piece of legislation, authorizes $370 billion in subsidies, grants, and tax credits to US firms in renewable energy and related sectors. This investment in green energy is a significant part of Biden's bigger strategy to reduce the US's reliance on fossil fuels and combat climate change.
Moreover, the Biden years have marked a rediscovery of the idea that economic security and national security are deeply interconnected. This concept, which drove the founding of the World Bank and International Monetary Fund at the end of World War II, is evident in Biden's approach to economic policymaking. The Biden administration has embraced combative interventions in the international marketplace, driven by a geo-economic rivalry with China.
Recently, the stock market experienced a fall, but corporate profits and stock markets have risen strongly overall. The Chips and Science Act provides funding for the US technology sector to reduce dependency on foreign suppliers, which is expected to boost US competitiveness in the technology sector.
In July, US employers added 114,000 roles, fewer than expected, and the unemployment rate ticked up from 4.1% to 4.3%. Despite this slight increase, the US economy is in surprisingly good shape compared to the Covid-wracked economy inherited by Biden in January 2021.
Inflation currently stands at 3%, a level that the Federal Reserve considers to be moderate. However, the focus on infrastructure and green energy investments, as well as the ongoing geo-economic rivalry with China, may have implications for inflation in the future.
In conclusion, Biden's economic policies have prioritized job creation, infrastructure investments, and the transition to a green economy. The economy is in a strong position, but challenges remain, particularly in terms of managing inflation and maintaining US competitiveness in the global marketplace.
