Despite falling inflation rates, American consumers are still angry with Biden as prices for staples like gasoline and milk remain higher than in 2019.
Some say his re-election campaign’s decision to brand the economy under his name “Bidenomics” looks like an early mistake as consumers express disappointment with his handling of the post-pandemic economy.
According to Axios polls, Americans’ perception of the economy is negative as some Democrats openly criticize Biden’s campaign strategy, which appears to be a denial of current events.
The disappointment comes from the idea that consumers tend to focus on the absolute prices of the things they need in their daily lives – which remain high.
While prices for many items are rising more slowly this year than last, they are still well above pre-COVID prices and are unlikely to return any time soon.
Despite falling inflation rates, American consumers are still angry with Biden as prices for staples like gasoline and milk remain higher than in 2019
According to the Labor Department, the consumer price index was 3.7 percent in August, well below the peak of 9.1 percent in June 2022.
However, the overall index rose 3.7 percent for the 12 months ended August, a larger increase than the 3.2 percent increase for the 12 months ended July, the Bureau of Labor Statistics reported.
For consumers, prices in supermarkets and at gas stations are noticeably higher than they have been recently.
According to the Labor Department, a gallon of whole milk cost an average of $3.93 in August, which was nearly $1, or 29 percent, more than in August 2019.
Meanwhile, a gallon of regular unleaded gasoline cost an average of $3.84 last month, 46 percent more than the $2.63 per gallon four years earlier, the Wall Street Journal reported.
“The fact that inflation has fallen does not mean that prices have fallen,” Tim Quinlan, senior economist at Wells Fargo, told the outlet.
“As long as prices remain high, which they believe they will, this will still weigh on consumer confidence.”
Joanne Hsu, director of the University of Michigan survey, said Americans are still adjusting after nearly a decade of low inflation leading up to the pandemic.
“Consumers understand that we are not going back to 2019, but they are still trying to figure out what that new normal looks like,” Hsu told the outlet.
“People are still wondering whether their income will keep up with inflation or whether inflation will further erode their standard of living.”
Meanwhile, a gallon of regular unleaded gasoline cost an average of $3.84 last month, 46 percent more than the $2.63 per gallon four years earlier
According to the Labor Department, a gallon of whole milk cost an average of $3.93 in August, which was nearly $1, or 29 percent, more than in August 2019
Joe Brusuelas, chief economist at RSM, said price declines are “undesirable for the economy” but consumers are “angry that price levels have risen persistently.”
Oklahoma State University Dean of Agricultural Sciences Jayson Lusk told WSJ that prices for some foods could fall back if they rise due to specific setbacks in the industry.
Citing bird flu as an example, he noted that the price of a dozen eggs rose from $1.93 in January 2022 to $4.82 in January 2023, but fell to $2.04 in August .
Lusk said food and dining prices are likely to remain high for some time, but wages will be a big contributor as the employer struggles to build staff.
“It’s true that what happens on the farm affects food prices, but in general it only accounts for a small portion of the total cost of food,” Lusk said.
“The labor market remains tight and that is putting pressure on prices.”
Speaking to Politico, Rep. Steven Horsford (D-Nev.) said, “We need to do a better job of framing this not so much for one person — for the office of the president — but for the people.”
“I never understood why you would brand an economy in your name when the economy hasn’t fully recovered yet,” Michael LaRosa, a former spokesman for Jill Biden, also told the publication.
Meanwhile, liberal economist James Galbraith wrote: “Whatever stories Americans are told about the strength of the economy under President Joe Biden, they will not be persuaded to look beyond the question of their own living standards.”
Biden’s economic approval rating is 37 percent, with 59 percent of respondents expressing disapproval of his performance, according to a new NBC poll
Biden appears to be focusing his campaign on the American working class and has argued that the country’s economy is a “world-leading” and praised his position at the top for saving the US from the brink.
Last month, Biden gave a speech on Bidenomics in Prince George’s County, Maryland, saying, “For the first time in a long time, we’re coming out of our great economic crisis. “It’s starting to work for working people.”
As his campaign ads circulate ahead of the upcoming election, Biden has praised his passage of the COVID emergency funds, the bipartisan infrastructure bill, the Inflation Reduction Act and semiconductor manufacturing funding.
His target audience doesn’t seem happy with his attempts to win them over with polls that show those disillusioned with the economy are winning over paycheck to paycheck.
Biden’s economic approval rating is 37 percent, with 59 percent of respondents expressing disapproval of his performance, according to a new NBC poll.
The NBC poll showed Republicans with a whopping 21-point lead over Democrats on the economy, 49 percent to 28 percent, the largest lead Republicans have had in 32 years.
Meanwhile, it shows Democrats have just a 2-point edge (36 percent to 34 percent) when it comes to targeting the middle class, an area where the party typically has a significant advantage.