Wrong about Biden economy
We are into the fourth year of Biden’s first term as President and some are finally beginning to realize that maybe, just maybe what Joe did was mostly correct. Yeah sure, there were some things he got wrong. However, he did lead us through one of the worst economic calamities the nation has survived, a pandemic. Democrats in Congress did help. In 2008, Obama had two years of Democrat support which went away in 2010.
Recognized Biden’s efforts was Larry Kudlow, Trump’s White House’s Director of the National Economic Council. On Thursday’s Fox’s News Kudlow admitted, “he was wrong about the Biden economy and all the predictions of an economic slowdown and impending recession.”
There is still a hint of a slowdown and New Deal democrat talks about it on Angry Bear and the Bonddad blog. NDd also talks about employment in his December Jolts report here at Angry Bear.
Layoffs and discharges are lower now than at any time before the pandemic. Voluntary quits are higher than at any point before the pandemic except for 3 years (2000 and 2018-19). Only hires are relatively weak, lower now than at about 60% of all years since the series began.
Still a strong labor market.
Many are complaining about higher prices. That happens when companies close. We saw similar in 2009. When companies came back, prices went up on industrial items such as chips and all we could do is except the increases or eat them. 2006-2008 . . .
Between 2006 and 2008 average world prices for rice rose by 217%, wheat by 136%, corn by 125% and soybeans by 107%. In late April 2008 rice prices hit 24 cents (US) per US pound, more than doubling the price in just seven months.
Unemployment jumped to 10% and hovered around 8-9% in2008-2010. Much higher than what was experienced between 2021-2022. The government took action with programs putting financial help in the form of loans to small businesses much of which were forgiven. More generous healthcare programs, financial aid to families, adults, and targeting children. Lesser programs were in place 2006-2008, 2010 and beyond.
Talking the economy again . . . “The Fed, everyone was wrong,” Larry Kudlow insisted.
Axios reported Wednesday.
- “The United States economy grew faster than any other large, advanced economy last year — by a wide margin — and is on track to do so again in 2024.
- “America’s outperformance is rooted in its distinctive structural strengths, policy choices, and some luck. It reflects a fundamental resilience in the world’s largest economy that is easy to overlook amid the nation’s problems.”
- “All countries were dealing with the same problems of post-pandemic inflation and high interest rates meant to combat it. But the U.S. managed to achieve solid growth in spite of those headwinds,” the report adds.
Sometimes people do not realize how good they really had till it becomes far worst. In two years and with Dems support in Congress, Biden got the nation past a pandemic disaster. Maybe he brought with him the lessons he learned from 2008-2010. Get things done while you have the power to do something.
‘Mea culpa’: Top Trump economic advisor admits on Fox News ‘I was wrong’ about Biden economy, New Civil Rights Movement, David Badash
U.S. winning world economic war, axios.com, Neil Irwin
Why the economy is a trouble spot for Biden, NPR, Domenico Montanaro
but…but….but…. he is too old.
people do not realize how good they really had till it becomes far worst.
aye-yep. thats what granpop use to say.
Dale:
Have you seen the Social Security expert as of late? I was going to ask him to write something. Have not seen him, have you?
don’t know which expert you have in mind.
i have been reading Ben Bernacke’s “21st Century Moetary Policy.” gratified to see that he agrees with some things i have said without strong evidence. thought about writing a Post, but having trouble finding the energy. anyway most p.eople could care less about what i have to say. i would be very glad to read what you have in mind,
meanwhile there is this” we have about a year to start the one tenth of one percent increase in the payroll tax, which is the best solution to the projected shortfall in SS funding. the congress has totally ignored the American Academy of Actuaries whose report shows that the one tenth percent sloution is the only one that actually “saves” Social Security as meaningful retirement insurance for workers. ALL pundits, even those on the Left have also ignored the one tenth percent solution. So I am…if i write anything at all…trying to emphasize that when we reach Trust Fund Depletion in about 2035, an immediate increase of 2% will be needed to fund SS, this will be enough ammo for the scare mongers to persuade the people too dumb to realize 1) they are going to need Social Security and 2) two percent of their income will not change their lifestyle or even be noticed once they get used to it. But the morons in congress (all of them apparently) and the liars who pretend to be experts will convinc them that SS needs to be reformed..by, ha ha, cutting benefits for the now young who will never grow old.
but by then it will be too late even for that; they will have to cut benefits for at least some of the now old…you know: the formerly young who would never grow old.
i need to add that when that 2% increase is needed (about thirty years sooner than it would have been if we started the one tenth percent increase today) will come at a time when our real income has increased about 10%. but the math here is too hard for people to understand, hint: instead of getting a hundred dollar per week raise you will only see an eighty dollar per week raise…with the missing twenty bucks put in a savings account for you where, due to the magic of compound interest, it will turn into about one hundred and twenty real dollars per week on your Social Security check, which you will need.
[disclaimer:i have also gotten old, i can’t do math in real time anymore. so there may be typos (brain-o’s) in the above. nothing that matters enough to matter. it won’t change the basic truth about the choices you face…or would face if we had a real democracy and you bothered to think about it.]