Biden’s Amazing Economy

Unparalleled Economic Growth.

President Joe Biden
President Joe Biden

Over the past two-plus years—since January 2021, when President Joe Biden took office—the United States has enjoyed unparalleled economic growth, with 12.7 million new jobs added over the past 27 months.

On May 5, 2023 the government released its April jobs report, which showed that employers added 253,000 more jobs that month, and unemployment went down to 3.4%—the lowest rate in over half a century.

This is despite the fact that the Federal Reserve Bank has been raising interest rates for the past year, specifically hoping to slow down economic growth to ease inflation. (More on that later.) Yet the US economy remains stronger, more resilient, and more consistently expansive than that of any other country in the world.

Here are a few facts to remember (and to repeat, ad nauseam, to anyone, Republican or Democrat, who claims Biden isn’t doing a good job):

  •   The US economy has generated 12.7 million jobs just in the first 27 months of Biden’s presidency.
  •   Black unemployment is down to 4.7% in April, the lowest ever recorded (overall unemployment is 3.4%, the lowest in half a century).
  •   New businesses have bloomed at the highest rate in history: 5.4 million new business applications were filed just in 2021 alone.
  •   Health insurance coverage has reached a historic high, with only 8% of all Americans uninsured. Since 2020, another 5.2 million Americans have gained coverage. Thanks, Joe!

Two other things we should be aware of:

First, in the past six administrations, since 1989, the US economy has increased by a total of 49 million jobs. Of those, 47 million—ninety-six percent—have been created during the 18 years under the three Democratic Presidents Clinton, Obama, and Biden. A paltry 4%, or 1.9 million, of those jobs were created in the 16 years under the two Bushes and Trump.

Second, the Federal Reserve—independent of the White House and Congress, though very beholden to Wall Street and the big-money banking world—has raised interest rates from 0% at the beginning of Biden’s presidency to 5% as of May 3. Its reason is, as always, to “tamp down growth” by “taming inflation.” Now, inflation has been high for two years, because of the Covid-19 pandemic, supply chain interruptions, worldwide bird flu (which quadrupled the price of eggs), and … wait for it … rising incomes for working people.

Economics 101

That last is because as businesses expand and hire more people, there are relatively fewer people left available for the new jobs. With 12.7 million new jobs created in just two years, there’s a lot of competition for those few (and fewer) unemployed people. So, salaries and wages have to go up in order to convince Kanesha and Michael to work for Company A instead of Company B.

That’s a basic rule of supply and demand: the less supply, and the greater demand, the higher the price you pay. It’s how capitalism works.

So, seeing that the supply of available workers has gone down, and the demand for more employees keeps going up, the price—the wages or salary—that an employer has to pay for each worker goes up. And THAT is exactly what Wall Street and the Federal Reserve hate!

The Federal Reserve Bank 101

Under Economics 101, if workers hold all the cards, they set the rules for pay. And it’s in companies’ interest to nip that in the bud. So Wall Street, the Federal Reserve, and big business interests that dominate the Fed get together every month and increase interest rates, so that it becomes more expensive for companies (especially smaller ones) to borrow the money they need to expand. Expansion might require purchasing more equipment or building a new warehouse or increasing their sales force and manufacturing team.

If it’s too expensive to borrow that money, the company won’t expand, and therefore won’t need as many (if any) new employees. And if the company doesn’t need you, you can’t ask for a higher salary. So wages get stagnant and even come down.

That’s what the Federal Reserve wants: specifically 2 million to 10 million more people out of work, according to Fed Chair Jerome Powell, so that the economy “slows down” or, better yet, crashes altogether. That, says Powell, is “the price we pay” for a stable economy—up to 10 million people unemployed!

Politics 101

You see, the Fed has one tool, a hammer, and one goal, to hit the nail until all wages are as low as possible and corporate profits are as high as possible. The hammer is interest rates (which is why your monthly home mortgage loan payment just went up), and the nail is jobs and wages for working people.

Funny that despite conservatives determination to find what they call a “soft landing” by throwing millions of Americans out of work, the Biden Administration is STILL creating a quarter of a million brand-new jobs every month.

Funny that despite the Fed’s interest rate hikes and the House’s attempt to smother the economy, the American Jobs Act, which is pouring money into building and repairing our roads, bridges, power grid, manufacturing sector, and other infrastructure, keeps creating those new jobs.

Why do the Fed and the Republicans in the US House want all those job gains reversed? Because the only way they think they can win is by making Joe Biden a failure.

They want to throw Joe Biden out of his job, and to do so, they are eager to throw YOU out of work.

That’s Political Economics 101.