United States President Joe Biden now faces a dilemma. On the one hand, he wants this US presidential election to have a “Bidenomics” theme. Otherwise, it risks becoming “Bidenflation.”
Biden now faces one of the biggest threats in his efforts to defeat Donald Trump due to the current soaring prices. The cost of living has also increased more rapidly.
The 81-year-old Democrat thought he had overcome the problem. However, figures this week showed US consumer inflation rose to 3.5% in the year to March, the second straight month of increase. Gas prices and home rentals contributed to half of the increase.
Inflation is likely to be a determining issue in this election. The Wall Street Journal called it a thorny issue for Biden, tentatively Financial Times questioned whether this issue could sink Biden.
“Inflation developments between now and the presidential election could be a determining factor in the outcome,” said Ryan Sweet, chief U.S. economist at Oxford Economics.
So far, the United States has not only avoided recession following the Covid-19 pandemic, but is now showing the strongest growth among other large countries in the world. Most importantly, inflation – which has weighed on the government peaking at 9% percent in 2022 – has been declining for months.
Also read: Biden will raise corporate taxes
Biden’s problem is that voters don’t always feel what the numbers showing the economy is doing booming.
Big economic numbers don’t matter to Americans when they feel down every time they fill up their car, struggle to feed their families when they go to the supermarket, or wonder how they will pay the rent on a house or apartment.
Polls have repeatedly shown that despite concerns about democracy after Trump’s divisive leadership, voters still think the real estate tycoon is more adept at tackling economic problems than Biden.
Also read: Joe Biden Shows Off US Economic Progress
The latest inflation figures hit consumer confidence, according to a survey conducted by the University of Michigan on Friday (12/4).
“There is some concern that the inflation slowdown may be stalling,” Joanne Hsu, who led the research, told AFP.
Biden tries to be optimistic. “We are in a better situation than when we took office, where inflation was skyrocketing,” he said at a news conference with the visiting Japanese prime minister on Wednesday.
But Republicans have used this issue to attack and dub this phenomenon “Bidenflation”, which is a mockery for the “Bidenomics” that Biden uses to ‘sell’ his policies. “Inflation is back and rising!” Trump said posting to his social media site, Truth Social.
In fact, according to PoliticoBiden’s former chief of staff, Ron Klain, also criticized his colleague for talking too much about bridges and infrastructure rather than the fact that eggs and milk are expensive. (AFP/M-3)
#Bidenomics #Bidenflation