Despite a robust job market, increased consumer spending, and inflation at a three-year low, many Americans remain skeptical about the state of the US economy. This discrepancy has been a recurring topic in President Joe Biden’s discussions with his economic team, according to sources familiar with the matter.
The public’s economic sentiment could significantly impact Biden’s chances of securing a second term in office. Inflation, which spiked early in his term and has remained a persistent issue, has recently eased. However, the prices of most goods remain higher than they were in spring 2021.
Despite these challenges, Biden’s economic advisers remain optimistic about the economy’s trajectory. They note that the high prices that marked the early years of the Biden administration are moderating, and economic growth is exceeding expectations. They also point out that the impact of the Covid-19 pandemic is gradually fading from the public’s memory.
However, the advisers have refrained from predicting when the public’s perception of the economy will significantly improve. Early signs suggest a shift in public sentiment, with recent surveys showing a rise in consumer outlook and confidence.
Despite these positive signs, Biden faces a tough battle on the economic front. A recent CNN poll revealed that 55% of Americans believe Biden’s policies have worsened the country’s economic conditions, while only 26% believe they have improved them. Biden’s approval rating for handling the economy has not surpassed 40% since December 2021 and currently stands at 37%.
While the president and his advisers hope for continued positive economic trends, they acknowledge the need to convince voters that Biden’s domestic policies have contributed to the economic recovery. They must also navigate potential economic challenges arising from geopolitical conflicts.
Biden has begun to address the public’s concerns about high prices by criticizing corporations that he believes have exploited high prices. He has also drawn attention to “greedflation” and “shrinkflation,” terms that refer to companies raising prices faster than inflation and reducing product sizes without lowering prices.
In a recent speech, Biden used the example of Snickers bars, which have not increased in price but have reduced in size, to illustrate his point. “They haven’t raised the price of a Snickers bar. They just took 10% of it out,” Biden said. “No, no, it’s much smaller. So that’s how they make more money.”