DJ Grothe on Facebook writes:

The Economist just did a big cover article on how great the U.S. economy is. Here is an unpaywalled version.

Real GDP is +8% vs. 2019, making “America…the only big economy that is back to its pre-pandemic growth trend.” This is compared to just 3% for Europe, 1% for Japan, and 0% for Britain.

Economists across the political spectrum (excepting the goofy ideological ones that feature on Fox News a lot) give most of the credit to the three big laws passed by Biden: the huge Infrastructure bill (that Trump always promised but never delivered), the Inflation Reduction Act, and the CHIPs Act, which provide incentives to build stuff in the U.S. And of course they credit Biden’s American Rescue Plan, too.

Good policy matters. Time for some skeptical debunking of the economic doomerism.

Biden is getting more done for the people than any president since FDR:

A smaller percentage of Americans are uninsured now than ever in our history.

Child poverty is at historic lows, thanks to Biden’s child tax credit in his American Rescue Plan.

Real wages are outpacing inflation for all socioeconomic quintiles.

The cost of living is actually going down (don’t believe the doomers)

America is energy independent for the first time in 40 years, and has been a net exporter of oil every year since 2020.

The cost of a gallon of gasoline nationwide on average is around three dollars a gallon, which is just a little higher than it was under Trump, and actually lower than it was under George W Bush and Obama.

Natural gas prices are at 10-year lows.

Wealth inequality under Biden is narrowing for the first time in almost 20 years…

The wealth of the lower two socioeconomic quintiles have seen their average household wealth increase by over 50% just since 2019.

The stock market is on an historic bull run.

Violent crime, including the murder rate, is lower than it’s been in nearly 50 years.

There is actually less illegal immigration under Biden than under Trump, believe it or not. (There are many more illegal border crossings now than under Trump, sadly, but there’s an order of magnitude more detentions and deportations under Biden than there were under Trump, which actually results in less illegal immigration now than under Trump. Immigration graph

Unemployment is at almost a 50-year low, and it’s never been lower than it is right now for Black Americans and Latinos.

Average debt-to-income ratios for American families are falling, and bankruptcies are at historic lows.

The average American household has cash savings equal to five weeks of income, which is the highest ever on record, and it’s also the record highest for the bottom half of the population by income. Savings graph

Homicide rates have decreased since Trump.Homicide graph

Things certainly aren’t perfect, but they are much better for all socioeconomic quintiles than they were in 2019, and much better by many measures than they’ve been in many many decades.

Thanks Biden!

  • Barry Zuckerkorn@beehaw.org
    2·
    8 months ago

    I agree with that, as a measure of price changes over time. I think the CPI correctly ignores substitution bias month to month, so that we can get a better picture of the price changes.

    In terms of household effects, though, the substitution effect tends to slightly reduce the effect of high prices on household budgets, and that’s what I understood as the meaning of that particular sentence at the top of this comment chain.

    And I don’t think of these particular examples of inferior or superior goods. The relative cost of chicken, pork, ground beef, certain cuts of steak, lamb, lobster, etc. is different from place to place, and not necessarily a reflection of consumer preference in all places.