{"id":2266775,"date":"2024-06-13T10:34:02","date_gmt":"2024-06-13T14:34:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/joe-bidens-fragile-economy\/"},"modified":"2024-06-13T10:41:38","modified_gmt":"2024-06-13T14:41:38","slug":"joe-bidens-fragile-economy","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/joe-bidens-fragile-economy\/","title":{"rendered":"Joe Biden&#8217;s Vulnerable Economy"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">8<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fjoe-bidens-fragile-economy%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2266775&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The article discusses the current state of the U.S.\u200c economy under President Joe Biden, highlighting a mix of seemingly positive indicators alongside underlying economic challenges. While superficial metrics such as a low unemployment rate at\u2064 4%,\u2064 record-setting indices like the S&#038;P 500 and NASDAQ, and a modest deceleration in\u2062 inflation (3.3% in May 2024) suggest economic stability, deeper issues present\u200b a bleaker picture.<\/p>\n<p>The May 2024 jobs\u2062 report paints a concerning scenario,\u2062 with job creation dominated by government positions and lower-paying healthcare roles, hinting\u2064 at a stagnant private sector. The workforce\u2064 shrank \u200bby 250,000 people, and \u200dthe labor\u200b force participation rate dipped to 62.5%, indicating a decline \u200bin active job-seekers. Additionally,\u200c full-time\u200d employment dropped\u200c significantly, while\u2063 part-time positions increased, signaling potential economic insecurity for many \u2062Americans.<\/p>\n<p>The\u2063 inflation rate,\u2064 primarily driven by escalating\u2062 housing costs, remains high with a notable increase in prices since Biden took office. This\u200b persistent inflation, combined with soaring\u2064 interest rates, is considerably impacting home\u200b affordability and ownership costs. Homeownership expenses, \u200csuch as property taxes, maintenance, and utilities, have risen\u2064 sharply. Mortgage \u2062rates stand around 7% for a thirty-year fixed-rate loan, making home buying increasingly\u2064 unattainable, particularly for young and working-class Americans. Furthermore, costs associated with other \u2063necessities like auto insurance have\u2064 also spiked, placing \u2063additional \u200dfinancial pressures \u2063on consumers.<\/p>\n<p>although \u200ccertain economic indicators appear strong, the\u2062 underlying data reveals significant challenges facing the current\u2063 economy,\u200b affecting the financial stability and prospects of many \u2063Americans.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><span style=\"font-weight: 400\">Joe Biden\u2019s economy, much like Joe Biden, continues to show confusion about where it wants to go.<\/span><\/p>\n<p><span style=\"font-weight: 400\">On the surface, the economy seems to be doing great. <\/span><a href=\"https:\/\/www.nerdwallet.com\/article\/finance\/jobs-report-unemployment-rate#:~:text=The%20unemployment%20rate%20ticked%20up,total%20coming%20in%20at%20272%2C000.\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">Unemployment<\/span><\/a><span style=\"font-weight: 400\">  is relatively low at 4%, the S&#038;P 500 and NASDAQ have recently set new <\/span><a href=\"https:\/\/www.cnbc.com\/2024\/06\/09\/stock-market-today-live-updates.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">records<\/span><\/a><span style=\"font-weight: 400\">, and the growth of the inflation rate seems to have slowed, given the May Consumer Price Index <\/span><a href=\"https:\/\/www.barrons.com\/livecoverage\/cpi-inflation-may-report-data-today\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">coming in<\/span><\/a><span style=\"font-weight: 400\">  at 3.3% year-over-year.<\/span><\/p>\n<p><span style=\"font-weight: 400\">However, scratch below the surface, and the economy is on very shaky footing.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The May jobs report was an unmitigated disaster. The U.S. <\/span><a href=\"https:\/\/www.nytimes.com\/2024\/06\/07\/business\/economy\/jobs-report-may-2024.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">economy<\/span><\/a><span style=\"font-weight: 400\">  added 272,000 jobs in May 2024. That seems like good news. But it isn\u2019t, once you get below the headline numbers.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The overall number of people in the <\/span><a href=\"https:\/\/www.reuters.com\/markets\/us\/good-bad-news-inside-us-jobs-report-2024-06-10\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">workforce<\/span><\/a><span style=\"font-weight: 400\">  shrank by 250,000 in May and the overall <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/poll-biden-approval-tanks-among-black-voters\/\" title=\"Poll: Biden Approval Tanks Among Black Voters\">labor force participation rate fell<\/a> to 62.5%, meaning fewer people are actively looking for work.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The largest employment <\/span><a href=\"https:\/\/www.bls.gov\/news.release\/pdf\/empsit.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">gains<\/span><\/a><span style=\"font-weight: 400\">  came from government jobs and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mcauliffe-fundraises-with-real-estate-exec-who-pushed-controversial-visa-program-to-attract-chinese-investment\/\" title=\"McAuliffe Fundraises With Real Estate Exec Who Pushed Controversial Visa Program To Attract Chinese Investment\">low-paying jobs<\/a> in the healthcare system. The government sector has been one of the major contributors to job growth under President Biden. This is not a good sign for the private economy, as the government should be shrinking, not growing.<\/span><\/p>\n<p><span style=\"font-weight: 400\">What is worse is that <\/span><a href=\"https:\/\/www.shrm.org\/topics-tools\/news\/talent-acquisition\/bls-hr-jobs-unemployment-jun-2024#:~:text=The%20report%20also%20showed%20that,62.7%20percent%2C%E2%80%9D%20Nguyen%20said.\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">full-time<\/span><\/a><span style=\"font-weight: 400\">  workers declined by 625,000, while those holding part-time positions increased by 286,000.<\/span><\/p>\n<p><span style=\"font-weight: 400\">In addition, in May, 414,000 <\/span><a href=\"https:\/\/www.foxbusiness.com\/media\/larry-kudlow-look-under-hood-bidens-may-jobs-report-youll-see-problem\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">immigrants<\/span><\/a><span style=\"font-weight: 400\">, both legal and illegal, gained jobs, while 663,000 native-born Americans lost jobs. This may be why wage growth continues to be low, with immigrants taking low-paying jobs, suppressing the overall wage rate.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The Consumer Price Index, the measure of <\/span><a href=\"https:\/\/www.foxbusiness.com\/economy\/cpi-inflation-may-2024\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">inflation<\/span><\/a><span style=\"font-weight: 400\">  in the United States rose 3.3% in May 2024, slightly less than April\u2019s increase of 3.4%, driven primarily by the cost of <\/span><a href=\"https:\/\/www.cnbc.com\/2024\/06\/12\/cpi-report-june-inflation.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">housing<\/span><\/a><span style=\"font-weight: 400\">. While the slowing of the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-governor-implies-employers-should-slow-down-wage-increases\/\" title=\"Fed Governor Implies Employers Should Slow Down Wage Increases\">rate price increases<\/a> is welcome, prices are still up more than 7.5% over the past two years and, overall, prices are up nearly 20% since Joe Biden took office in January 2021.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The cumulative impact of inflation, combined with high interest rates, is putting the dream of home ownership further out of reach for most young and working-class Americans.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Not only are homes at record high prices, with the median home <\/span><a href=\"https:\/\/www.forbes.com\/advisor\/mortgages\/real-estate\/median-home-prices-by-state\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">price<\/span><\/a><span style=\"font-weight: 400\">  over $400,000, the cost of maintaining a home has risen dramatically.<\/span><\/p>\n<p><span style=\"font-weight: 400\">A recent study by <\/span><a href=\"https:\/\/www.bankrate.com\/mortgages\/hidden-costs-of-homeownership-study\/#:~:text=In%20a%20market%20where%20median,Hidden%20Costs%20of%20Homeownership%20Study.\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">Bankrate<\/span><\/a><span style=\"font-weight: 400\">  aggregated the average costs of property taxes, insurance, home maintenance costs, and utilities, finding that maintaining the typical home costs more than $18,000 per year, for a typical home valued at $436,000. This is an additional $1,510 per month on top of the monthly mortgage payment, up 26% over the past four years.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Homeowners\u2019 <\/span><a href=\"https:\/\/www.foxbusiness.com\/economy\/homeownership-costs-us-surged-26-since-start-2020\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">insurance<\/span><\/a><span style=\"font-weight: 400\">  rates are up nearly 40% since 2019.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Add this to the fact that <\/span><a href=\"https:\/\/www.marketwatch.com\/guides\/mortgages\/mortgage-rates-for-tuesday-06-11-2024\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">mortgage<\/span><\/a><span style=\"font-weight: 400\">  rates are hovering around 7%, for a thirty-year fixed-rate mortgage.<\/span><\/p>\n<p><span style=\"font-weight: 400\">It is no wonder that the <\/span><a href=\"https:\/\/www.cnb.com\/personal-banking\/insights\/moving-back-home-after-college.html#:~:text=But%20it%27s%20also%20time%20to,parents%2C%20according%20to%20Pew%20Research.\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">demographics<\/span><\/a><span style=\"font-weight: 400\">  of those living at home with their parents has changed. Mom and Dad\u2019s basement is no longer reserved for the unemployed slacker who spends his days playing video games, eating frozen pizza, and drinking energy drinks. Today, it is college graduates who are moving home, with 32% of college graduates returning to their childhood bedrooms in an effort to save money for an apartment or a house.<\/span><\/p>\n<p><span style=\"font-weight: 400\">It isn\u2019t just home insurance. <\/span><a href=\"https:\/\/prospect.org\/economy\/2024-05-16-auto-insurance-rates-out-of-control\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">Auto insurance<\/span><\/a><span style=\"font-weight: 400\">  rates are also up nearly 23% over the past twelve months. In addition, the interest rates needed to <\/span><a href=\"https:\/\/www.bankrate.com\/loans\/auto-loans\/when-will-auto-loan-rates-drop\/#now\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">finance<\/span><\/a><span style=\"font-weight: 400\">  the purchase of a car continue to be extremely high, ranging from 7 \u2013 15%, depending on one\u2019s credit score, and they are not expected to decrease in 2024.<\/span><\/p>\n<p><span style=\"font-weight: 400\">While the headlines sound great \u2014 low unemployment, a booming stock market, and a declining rate of inflation growth \u2014 the economy is, quite frankly, simply limping along. More importantly, working Americans are struggling to make ends meet.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Real <\/span><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-06-02\/key-engines-of-us-consumer-spending-are-losing-steam-all-at-once\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400\">spending<\/span><\/a><span style=\"font-weight: 400\">, which excludes inflation, fell in April 2024, with the American consumer spending less on cars, dining out, and recreational activities.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The Federal Reserve Bank\u2019s decision on June 12 to leave interest rates at their current levels shows that the Fed is more concerned with the return of high inflation than about a slowing economy.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The Fed will be under tremendous pressure to decrease interest rates after their September meeting, in order to help Joe Biden\u2019s reelection campaign. Will Jerome Powell and the rest of the Fed\u2019s Board of Governors have the courage to remain neutral or will they bow to the power of political pressure?<\/span><\/p>\n<p>* * *<\/p>\n<p><em>Jim Nelles is a Navy veteran and supply chain consultant based in Chicago. His articles have appeared in the Washington Examiner, Newsweek, Foxnews.com, and the Daily Wire. He has served as a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/border-crossings-are-at-an-all-time-high-the-homeland-security-department-is-prioritizing-diversity-equity-and-inclusion\/\" title=\"Border Crossings Are at an All-Time High. The Homeland Security Department Is Prioritizing \u2018Diversity, Equity, and Inclusion.\u2019\">chief procurement officer<\/a>, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/housing-market-stalls-as-interest-rates-remain-high-inventory-falls\/\" title=\"High interest rates and low inventory cause housing market to stall.\">chief supply chain officer<\/a>, and chief operations officer for multiple companies.<\/em><\/p>\n<p><em>The views expressed in this piece are those of the author and do not necessarily represent those of The Daily Wire.<\/em><\/p>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Joe Biden&#8217;s economy, mirroring his own uncertainties, presents a mixed direction. While superficially robust with a 4% unemployment rate and recent record highs in the S&amp;P 500 and NASDAQ, the underlying economic trajectory remains unclear, even as inflation growth appears to decelerate<\/p>\n","protected":false},"author":1881,"featured_media":2266776,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/dw-wp-production.imgix.net\/2024\/06\/GettyImages-1219649343.jpg","fifu_image_alt":"","footnotes":""},"categories":[541],"tags":[],"class_list":["post-2266775","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-daily-wire"],"fifu_image_url":"https:\/\/dw-wp-production.imgix.net\/2024\/06\/GettyImages-1219649343.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2266775","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1881"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2266775"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2266775\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2266776"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2266775"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2266775"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2266775"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}