Biden goes into 2024 with the economy getting stronger, but voters feel horrible about it

In 2024, President Joe Biden faces a significant challenge as he seeks re-election. Despite the U.S. economy showing signs of strength, public sentiment remains pessimistic. This divergence between economic indicators and public perception could be a pivotal factor in determining Biden’s electoral success. Republicans are capitalizing on this dissatisfaction, while the White House is struggling to emphasize economic progress.

Democratic pollster Celinda Lake, who has worked with Biden, points out the paradox: the economy is improving, but people expect it to worsen, which she finds concerning. This sentiment reflects a desire for not just lower inflation rates but an outright decline in prices, a rare occurrence since the Great Depression.

The economic data tells a different story. Recent employment reports showed job gains and a reduced unemployment rate, while inflation has decreased from 9.1% to 3.2% without triggering a recession. Despite this, the University of Michigan’s Consumer Sentiment Index indicates persistent economic pessimism.

Notably, sentiment appears to be rising more among Republicans than Democrats, potentially signaling increased optimism among GOP voters about regaining the White House in 2024.

Jared Bernstein, chair of the White House Council of Economic Advisers, argues that a strong underlying economy is essential for improving consumer sentiment over time. He stresses the need to continue efforts to lower costs and extend economic gains to working Americans.

The White House has shifted its messaging in three ways to boost confidence in Biden’s economic leadership. First, Biden introduced the term “Bidenomics” to describe his policies, but it was quickly seized upon by Republicans for criticism. Second, Biden attributed inflation to corporate price hikes, positioning himself as a defender against such practices. Lastly, he is scrutinizing former President Donald Trump’s economic record, highlighting job losses during his tenure.

In response, Republicans have downplayed positive economic data and focused on public sentiment. They highlight multi-year increases in consumer prices and urge people to trust their instincts rather than statistics.

Despite these efforts, Biden’s speeches have had limited impact on improving his standing on the economy. Public negativity persists, even as the economy appears to avoid a predicted recession.

Several factors contribute to this disconnect. The pandemic’s impact, social media influences, and political beliefs all shape people’s perceptions of the economy. Additionally, it may take time for people to adjust after a period of rising inflation, with lag effects on consumer sentiment.

The loss of pandemic aid from the government has also left many materially worse off, as government checks and expanded child tax credits initially helped offset rising prices. Adjusting for government transfers and taxes, the average income for lower earners decreased from $34,800 to $26,100 during Biden’s tenure.

Furthermore, some companies exploited global events, such as Russia’s invasion of Ukraine, to raise prices and increase profits. Although Biden can argue that this price gouging occurred months ago, his message may now be too late.

In conclusion, the disconnect between the strong economic data and public sentiment poses a significant challenge for President Biden as he heads into the 2024 election. While the economy shows signs of improvement, convincing the public of this progress remains a daunting task, and it may require a combination of effective messaging and time for sentiment to catch up with economic reality.

Frequently Asked Questions (FAQs) about Economic Perception

More about Economic Perception

• Biden’s Economic Challenges in 2024
• Public Perception of the Economy
• White House Strategies to Address Economic Disconnect
• Factors Contributing to Economic Disconnect
• Impact of Government Aid During the Pandemic
• Corporate Price Increases Amid Global Events
• Potential Impact of Economic Disconnect on 2024 Election