The Biden-Harris administration is trying to accomplish something that has never been done this century, and has only been done since 1965: They are trying to achieve the elusive “soft landing” on the economy.
When inflation rises, the usual tool to contain it is to raise interest rates imposed by the Federal Reserve. Raising interest rates can lead to a sharp decline in business purchasing and consumer confidence. Purchasing falls, the economy slows, and before you know it… we’re in a recession.
Economists were predicting a recession even before inflation spiked in 2022. The massive disruption caused by the COVID-19 pandemic temporarily pushed unemployment to its highest level since the Great Depression, necessitating significant government intervention to protect businesses and prevent individuals from losing everything.
It will take extraordinary policies to keep unemployment down, control inflation, and stave off a recession. Managing all of that while also stimulating a revival of American manufacturing, bringing back tech jobs from overseas, and driving the stock market to unprecedented highs seems like something no one could have predicted.
Thankfully, America has President Joe Biden and Vice President Kamala Harris.
Economists had predicted another slowdown in the US economy in the second quarter of 2024. But that never happened.
Instead, GDP growth has soared, inflation has fallen, business investment has increased, and consumer confidence has risen.
Even as interest rates remained high, consumer spending increased and businesses built up inventories at a strong pace. Best of all, the new orders from businesses weren’t just an attempt to stockpile for anticipated disasters or to replace inventory lost to supply line disruptions. Businesses made bigger purchases because their sales were also growing.
Economists have spent the last four years underestimating the Biden-Harris Administration’s policies and predicting a recession. It’s not because they dislike Joe or Kamala, it’s because they’re acting on past experience. Not since the 1990s has the much-vaunted soft landing panned out.
This was made possible by an incredibly strong economy on many levels: the American Rescue Plan, the bipartisan infrastructure bill, the Contract with Inflation Act, and the CHIPS Act all worked together like stool legs to give our economy the strength to weather the effects of the pandemic — and not just survive, but thrive.
This Administration’s policies and White House legislation have delivered very low unemployment over a long period of time while promoting growth. While the revival of American manufacturing is just beginning, momentum is moving in the right direction.
“Today’s GDP report made it clear that we now have the strongest economy in the world,” Biden said in a statement Thursday. “The Vice President and I will continue to fight for America’s future — a future full of hope and possibility, where ordinary Americans achieve amazing things.”
All that remains is to ensure that the next president continues the policies that have lifted America out of this storm and steer the country toward greater growth and prosperity. There appears to be only one candidate qualified for the job.
Economists weren’t expecting strong economic news on Thursday, but after four years of seeing what the current administration can accomplish, you’d think they might have a little more faith.
Donate $10 to Kamala Harris’ campaign and help get America on the right track.
