Biden benefits from declining inflation, but GOP holds ‘Bidenomics’ accountable.

Headlines from the Labor Department’s June inflation report provide political boost for President Biden

The latest inflation report from the Labor Department has given President Joe Biden a much-needed political boost as he seeks to convince voters that they are better off under his leadership. Despite consumer prices increasing by only 3% compared to 9.1% a year ago, underlying economic data suggests that there is still work to be done to fully implement “Bidenomics” and promote his policies on the campaign trail.

Republicans claim “big government Bidenomics is failing”

No matter how Biden and the “corporate media” spin the numbers, former Rep. Tim Huelskamp (R-KS) argues that voters know “big government Bidenomics is failing.” He points to rising inflation, declining real wages, and the overall worsening financial situation for most Americans. Huelskamp believes that as the government grows, opportunities and freedom for hard-working Americans shrink.

While Republicans are not actively rooting for inflation or a recession, GOP strategist Alex Conant acknowledges that decreasing prices and unemployment can generally be helpful to Biden’s chances of reelection. However, he also notes that voters’ opinions on the economy tend to lag behind the latest market data, and there is still a lot of uncertainty. Therefore, it is too soon to determine how the latest economic data will ultimately impact the 2024 election.

In June, inflation rose by 0.2%, resulting in a 3% increase compared to the previous year. This is the lowest level since March 2021. Core inflation, which excludes food and energy prices, also rose by 0.2% and 4.8%, respectively. This is the lowest level since October 2021, following a high of 6.6% in September. However, the cost of shelter, a key component of the consumer price index, increased by 0.4% in June, resulting in a yearly increase of 7.8%.

Republicans criticize Biden’s economic policies

Republican National Committee Chairwoman Ronna McDaniel criticizes Biden’s economic policies, highlighting his negative approval rating regarding the economy. She argues that American families and workers will take a long time to recover from “Bidenomics” due to higher costs for everything. McDaniel believes that voters will make Biden a one-term president because he continues to lie to Americans and refuses to take responsibility for his failed agenda.

The White House Council of Economic Advisers acknowledges that June’s monthly inflation rate of 0.2% was higher than May’s 0.1%. However, they argue that monthly data can be noisy and may obscure underlying trends. They emphasize that households can experience relief from high inflation through disinflation, deflation, and real wage gains. From the perspective of overall inflation, all three factors are in play in the current economy.

President Biden, while circulating economic charts among political allies, sees June’s inflation report as “new and encouraging evidence” that prices have been steadily decreasing over the past year. He asserts that the broader economy remains strong, with unemployment at near record lows. Biden highlights that real wages for the average American worker are now higher than before the pandemic, with lower-wage workers experiencing the largest gains. He pledges to continue fighting for lower costs for families every day.

White House National Economic Council Director calls on corporations to decrease markups

During an Economic Club of New York address, White House National Economic Council Director Lael Brainard urges corporations to bring their markups back down. She emphasizes the success of “Bidenomics” and highlights the president’s agenda of investing in infrastructure, semiconductors, clean energy, worker education and empowerment, and promoting competition and decreasing costs. Brainard asserts that despite predictions of an impending recession, the U.S. recovery is solid and inflation is down. She affirms the president’s commitment to executing this three-part strategy in a fiscally sustainable manner.

*As an Amazon Associate I earn from qualifying purchases