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      US adds 216,000 jobs in December as stronger than expected rise caps robust year

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      The US workforce added 216,000 jobs last month, more than expected by economists, capping another robust year of growth in the face of higher interest rates.Policymakers, weighing when to start cutting borrowing costs, are closely monitoring the strength of the labor market as they try to guide the world’s largest economy to a so-called “soft landing”, where price growth normalizes and recession is avoided.American employers had been expected by economists to add about 164,000 jobs in December, down from 173,000 the previous month. Recruitment across the public, healthcare, social assistance and construction sectors helped drive growth as 2023 drew to a close.Overall, Friday’s official data showed that 2.7m jobs were added in the US economy over the course of last year – down from 4.8m in 2022.While its growth has slowed, the labor force has defied fears of a downturn after the Federal Reserve launched an aggressive campaign to pull back inflation from its highest levels in a generation. It remained resilient last year in the midst of layoffs and strikes.The headline unemployment rate stood at 3.7% in December, according to data released by the Bureau of Labor Statistics, in line with November.While last month’s jobs growth reading was significantly higher than forecast by economists, the agency revised its estimates for October and November lower. As a result, the US workforce in these two months was some 71,000 jobs smaller than previously reported.As price growth continues to decline, officials at the Fed – which last hiked interest rates in July – are now mulling the future of its battle. Jerome Powell, the central bank’s chairman, said last month that the historic tightening of monetary policy was probably over, and that discussions on cuts in borrowing costs were coming “into view”.The official jobs report is closely scrutinized by Wall Street each month for signs of how the US economy is faring. The S&P 500 started the day slightly higher in New York.Nancy Vanden Houten, lead US economist at Oxford Economics, said: “There is a lot of noise in the data, but we continue to expect that there will be enough evidence of a further loosening in labor market conditions and a decline in inflation more broadly to allow the Fed to begin cutting rates in May.”Growth in private sector employment “continues to slow relentlessly, even after the upside surprise” in December, said Ian Shepherdson, chief economist at Pantheon Macroeconomics. “Behind the headline, the trend in job growth is slowing, with more softening to come.” More

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      Joe Biden signals he has no interest in signing US-UK trade agreement

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      Ministers have given up on signing a trade agreement with the US before the next election, after the Biden administration signalled it had no interest in agreeing one.British officials had been hoping to agree a “foundational trade partnership” before both countries head to the polls in the next 12 months, having already decided not to pursue a full-blown free trade agreement.However, sources briefed on the talks say they are no longer taking place, thanks to reluctance among senior Democrats to open US markets to more foreign-made goods. The story was first revealed by Politico.A British government spokesperson said: “The UK and US are rapidly expanding cooperation on a range of vital economic and trade issues building on the Atlantic declaration announced earlier this year.” Multiple sources, however, confirmed the foundational trade partnership was no longer on the table.Vote Leave campaigners said giving the UK the freedom to sign bilateral trade agreements with other countries would be one of the biggest benefits of Brexit, with a US trade deal often held up as the biggest prize of all.Talks over a free trade agreement stalled early on, however, thanks in part to resistance from Democratic members of Congress and concerns in the UK about opening up UK markets to chlorine-washed chicken and hormone-injected beef.Earlier this year, the Guardian saw documents outlining how Washington and London could instead coordinate over a partnership covering digital trade, labour protections and agriculture. The deal would not have included lower barriers for service companies, meaning it fell short of a fully fledged free trade deal, but could have paved the way for one in the future.skip past newsletter promotionafter newsletter promotionSources say the deal was always likely to prove difficult to finalise, in part because the US still wanted greater access for their agricultural products. The prime minister, Rishi Sunak, said at a food security summit earlier this year that he would not allow either chlorine-washed chicken or hormone-injected beef into the UK.It also became clear in recent weeks that the Biden administration had no interest in signing any kind of a deal before the election, given how Donald Trump had weaponised international trade agreements during his first run for president.A spokesperson for Ron Wyden, the Democratic chair of the Senate finance committee, told Politico: “It is Senator Wyden’s view that the United States and United Kingdom should not make announcements until a deal that benefits Americans is achievable.” More

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      Biden plans to use cold-war era law in attempt to lower US prices

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      The White House has announced it plans to use a cold-war era law to ease supply chain issues that the administration argues are contributing to higher inflation – a key electoral challenge to Joe Biden’s re-election chances next year as polling consistently suggests voters are not buying his Bidenomics pitch.In a statement, the White House said Biden will use the Defense Production Act to improve the domestic manufacturing of medicines deemed crucial for national security and will convene the first meeting of the president’s supply chain resilience council to announce other measures tied to the production and shipment of goods.“We’re determined to keep working to bring down prices for American consumers and ensure the resilience of our supply chains for the future,” said Lael Brainard, director of the White House national economic council and a co-chair of the new supply chain council, in a separate statement.The Defense Production Act of 1950, which was passed to streamline production during the Korean war, was last used in early 2021 during the coronavirus pandemic to accelerate and expand the availability of ventilators and personal protective equipment.The supply chain council is set to address issues ranging from improved data sharing between government agencies, supplying renewable energy resources and freight logistics.Jake Sullivan, the White House national security adviser, will be co-chair of the council, which includes the heads of cabinet departments, the administration’s council of economic advisers, the US director of national intelligence, the Office of Management and Budget, and other agencies.Monday’s announcement arrived as the US economy appears to be doing well on paper. But the White House has acknowledged that improving economic picture is not shared by consumers, and the administration has explicitly tied the economy to the president by calling it Bidenomics.A recent Economist/YouGov poll found that only 39% of voters approve of Biden’s handling of jobs and the economy. And a separate Reuters/Ipsos poll puts the economy as the most important issue to Americans for the past two years.Even as the pace of inflation has slowed, consumers are shouldering an economic burden they had not experienced in years. Prices have risen as much in the past three years as they had in the previous decade, according to a report by Bloomberg, and it now costs almost $120 to buy the same goods and services a family could afford with $100 before the pandemic.According to Bloomberg, groceries and electricity are up 25%, used car prices have climbed 35%, auto insurance 33% and rent roughly 20% since January 2020. Housing affordability is at its worst on record. Auto-loan rates and credit card interest rates are also at a peak.As a result, many Democrats say it is time for Biden to adjust the economic message ahead of the 2024 election.In a statement, the White House said that “robust supply chains are fundamental to a strong economy”.“When supply chains are smooth, prices fall for goods, food, and equipment, putting more money in the pockets of American families, workers, farmers, and entrepreneurs,” the statement added.“Supply chain stress has eased measurably over the past year and the Biden administration’s announcement is another step in the right direction,” the Moody’s economist Jesse Rogers said.Rogers added: “While unlikely to resolve some of the more complex issues plaguing supply chains in one go, measures targeting pharmaceuticals, climate infrastructure, data security and logistics will bolster resilience and get the ball rolling on smart infrastructure and global cooperation.”In addition to domestic production measures, the administration said it will work to strengthen global supply chains internationally, including by developing early warning systems with allies and partners to detect and respond to supply chain disruptions in critical areas.Those include measures “to improve the weather, water, and climate observing capabilities and data-sharing” with countries “needed to produce global climate information and minimize impacts upon infrastructure, water, health, and food security”. More

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      Credit agency Moody’s cuts outlook on US government to negative

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      The credit ratings agency Moody’s reduced its outlook on the US government from stable to negative, citing division in Washington DC and risks to the nation’s fiscal strength.While Moody’s maintained the US’s current top-grade AAA rating, it raised the prospect that this may be cut.Moody’s warned that the US’s deficits are likely to remain “very large” in the face of higher interest rates. It also cautioned that “continued political polarization” in Congress rasies the risk that governments “will not be able to reach consensus on a fiscal plan to slow the decline in debt affordability”.The federal government is on the brink of another shutdown, with just a week left for the Republican-led House, Democratic-led Senate and Biden White House to reach a breakthrough on funding.The Biden administration said it disagreed with the decision, which comes just three months after another major agency, Fitch, downgraded its top rating for the US. Standard & Poor’s, the other leading ratings agency, had already done so.“In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues, Moody’s expects that the US’s fiscal deficits will remain very large, significantly weakening debt affordability,” the agency said in a statement.Wally Adeyemo, the US deputy treasury secretary, said: “While the statement by Moody’s maintains the United States’ AAA rating, we disagree with the shift to a negative outlook. The American economy remains strong, and treasury securities are the world’s pre-eminent safe and liquid asset.”Karine Jean-Pierre, White House press secretary, suggested the move was “yet another consequence of congressional Republican extremism and dysfunction”. More

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      Does Wile E Coyote explain US voters’ gloom amid buoyant economy?

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      Strolling past the colorfully restored Victorian homes of the Fourth Ward, watching the barman hand-carve blocks of ice for old fashioneds at the jam-packed bar of The Crunkleton, it’s easy to fall for Charlotte’s ample southern charms. And yet, people are not happy – at least according to the polls.Consumer sentiment in North Carolina is now lower than it was at the height of the pandemic, according to High Point University’s confidence tracker. “People are just not feeling particularly good,” said Martin Kifer, director of the university’s survey research center.North Carolina is not alone. Official figures suggest the US pulled off an astonishing recovery from the Covid pandemic and recession.More than 20 million people in the US lost their jobs in April 2020 as the coronavirus pandemic shuttered the world’s largest economy. The unemployment rate rose to 14.7%. But the rebound was just as dramatic. Unemployment has hovered near 50-year lows since January 2022 and is now 3.8%. In North Carolina, it’s just 3.3%. More than 100 people are moving to the city every day.But as an exclusive Guardian/Harris Poll survey found this week, two-thirds (68%) of Americans report it’s difficult to be happy about positive economic news when they feel financially squeezed each month.Across the country, poll after poll shows people are not feeling it. That’s not good news for the Biden administration, particularly in a potential swing state where the perceived success – or failure – of “Bidenomics”, as Biden has dubbed his economic strategy, will be one of the key issues in next year’s election.The election is still a way out, and Biden has proven pollsters wrong in the past. Nevertheless, the economy – or voters’ perception of it – will be a defining issue in one of the most consequential elections in US history.Americans are deeply divided on the economy. The Harris poll shows over half (53%) of Americans believe the economy is getting worse. Some 72% of Republicans share that view compared with 32% of Democrats. But the unhappiness runs deep on both sides. Only a third of Democrats believe that the economy is getting better.Even when Americans say they are doing OK financially, they believe the economy is in trouble. According to the Federal Reserve’s annual survey of economic wellbeing, 73% of households said that they were “at least doing OK financially” at the end of 2022. In 2019, that figure was 75% of households. But back then, 50% said the national economy was good or excellent. By 2022, that number had fallen to just 18%.Some heavyweight voices share the gloom. Both the former Treasury secretary Larry Summers and Bill Dudley, former president of the Federal Reserve Bank of New York, have speculated that having shot out of the pandemic like a coyote chasing a roadrunner, the US may be in a “Wile E Coyote” economy and, like Warner Brother’s cartoon canine, the US economy may be heading off a cliff. “Falling back to earth will not be a pleasant experience,” Dudley has warned.Partisanship explains much of the seeming disconnect between economic data and sentiment. But not all of it. Large forces are reshaping the US economy and may explain the nation’s vertigo.Many low-wage workers, have been living with that fear of falling for a long time.Ieisha Franceis’s wages have shot up from $12.50 to $17 since the Durham, North Carolina, resident made the shift from working in fast food to a job at a senior living facility. Wages are – finally – running ahead of inflation overall but for Franceis, “everything looks the same. Inflation’s not gone down, it’s just not going up,” she said. “These days $17 an hour is looking a lot like $12.50,” said the low-wage activist.Franceis used to buy her family’s side dishes, boxes of macaroni and cheese, mashed potato, at Dollar General. The Kraft Macaroni and Cheese (“the good stuff”) has gone. “Now they only carry a cheaper brand with the powdered cheese.” At the average grocery store, that Kraft Mac and Cheese is over $2.“The Dollar Tree went from everything being $1 to everything being $1.25. Now they even have a $5 section and a $10 section. Huh? This was a dollar store,” she said. “Bidenomics” means little to Franceis. “What we need is higher wages and more unions,” she said.Even entrepreneurs are finding the new, post-Covid economy taxing.Cocktail queen Tamu Curtis saw her business boom during lockdown. A Los Angeles transplant, she started giving cocktail classes online and saved enough to open her bricks-and-mortar shop. The Cocktailery – nestled between an Anthropologie and Warby Parker inside an old streetcar station – opened in September 2021 when the vaccines started rolling out. “I thought, OK everybody is going to run and get the vaccines. We are saved! Of course, it didn’t work out that way,” she said ruefully. “That was a plot twist.”Up and running now for over a year, business has been strange. “This has been the craziest summer. It’s so slow,” she said.Retail sales have collapsed but classes have boomed. “People will spend money on experiences. On travel. We spent two years filling our houses with stuff. Maybe we just don’t need that any more.”On top of that, she said, “inflation is killing me.” An order of cocktail bitters that used to cost her $700 shot up to $1,500. “There’s only so much you can pass on. I can’t sell a bitter for $42. There’s a max people will pay.”At the same time, rent is high and financing is getting tougher as interest rates rise. “It’s difficult,” she said. And more so for a minority, woman-owned business. She hasn’t been able to get a traditional bank loan yet or a line of credit from her bank, Charlotte-based Bank of America. “Now the banks aren’t lending the way they were.”Post-Covid has been an easier ride for other local business people but still, existential questions remain, ones that may point to a wider national malaise.Desmond Wiggan and his partner Aubrey Yeboah launched their business, BatteryXchange, in 2019, just before the pandemic. The company sets up battery charging stations for mobile devices and the idea had originally been to target people at conferences or out on the town. “Suddenly there were no people,” said Wiggan.BatteryXChange retooled and now rents its equipment to healthcare providers and others who use the service to help keep their customers online. It worked and business is booming, as is Wiggan’s profile. He has just returned from a business symposium on swanky Martha’s Vineyard. A copy of Propel, a local Black business magazine, sits on his office table. Wiggan’s headshot is above a message from Michelle Obama: “Success isn’t about how much money you make, it’s about the difference you make.”But Wiggan has some wider concerns. He spent two years living in China and has seen firsthand that other countries think on a longer timescale. Back in the US, he said, it’s all about the next election cycle. On top of that another likely hot election issue worries him. “The age gap of our leaders. They are old. The torch has got to be passed.“These other countries are starting to sniff us out,” he said. Foreign students were getting their education in the US then going home because they see their country looking to the future, he said. “They are thinking 2060 not every four, eight years when we go back and forth.”****Why people feel so bad about an economy that – technically – appears strong is a question that is vexing not just the White House but Nobel economic laureates. Historians will have a better answer. For now, the reasons look manifold.As HPU’s Kifer points out “the perception of the economy is not the economy.” The disconnect between the official figures and how people feel may be temporary. Nor is it unusual for the hangover of a recession to outlast what looks like the beginning of a recovery. High Point’s own consumer confidence index started in 2010, two years after the peak of the 2008/2009 recession. It wasn’t until September 2011 that confidence started rising.The US’s pandemic recession began in February 2020 and ended two months later, making it the shortest recession on record. The body blow it dealt to confidence is, however, proving hard to shift. And things are different this time. For one, there is relatively high inflation – something never directly experienced by Americans under 40. Slowing increases have done little to calm people’s nerves and most people in North Carolina expect inflation to get worse next year, according to another HPU poll.The mood of economic despondency is fueled by other fires, too, illustrated by life in North Carolina and felt across the country.Politics plays a huge role. The University of Michigan’s national consumer confidence index shows Republican confidence soared under Trump and dropped under Biden while Democrats’ did the opposite.But it’s not the only factor. While people may not have lost their jobs, America’s middle class has lost $2tn in wealth since 2020 thanks to inflation and the fastest increase in interest rates since the 1980s, according to data compiled by economists at the University of California, Berkeley.That fall comes after outsized gains from stimulus cheques, rising house prices and other assets for those who rode out the pandemic with little financial cost. Still, the psychological pain of losing is about twice the pleasure of winning, according to Nobel-winning psychologist and economist Daniel Kahneman. Losses loom larger than gains.Then there are the epochal issues of our day – ones that will spread far beyond North Carolina and the Biden presidency.North Carolina has been voted the best state for business for two consecutive years and business is still good. But there are signs of a slowdown. According to the Charlotte Regional Business Alliance, the Charlotte area expects businesses to invest $2.3bn in the region this year and create 7,200 jobs. That’s down from $8bn in investment and 20,000 jobs last year.Uncertainty is a large part of that drop, said Danny Chavez, chief business recruitment officer of the Charlotte Regional Business Alliance. Concerns about the direction of interest rates and political change are part of it – businesses waiting to see what happens next year, a natural part of the cycle. There is also something more.The number of jobs created per investment is also decreasing as tech takes jobs. Financial services and manufacturing are extremely important to the region. They remain so, said Chavez. “But in terms of jobs, both those industries are highly vulnerable to automation and AI,” he said.While Charlotte is better positioned than most to ride out that change, Chavez said the region – and the rest of the US – is also increasingly competing with global players. India and China are challenging the US’s rank as the world’s largest economy.Biden’s economic plans are playing to the long term and America has proved resilient to big shocks before. The president also has a track record of beating expectations. If hiring stays steady and inflation keeps receding, maybe Americans will hear the good news soon. That may or may not happen before the 2024 election.But the polls may also reflect a wider anxiety about the existential challenges the US (and other economies) face. Perhaps those challenges explain some of the national mood. It’s hard to measure existential dread.Longer term, neither Bidenomics – nor Trumponomics – are likely to fix America’s broken healthcare and childcare systems or the climate crisis. Nor do they offer clear solutions to the global trade winds that threaten American exceptionalism or the challenges presented by AI and automation.Little wonder then that so many in the US feel like Wile E Coyote, running off the cliff, treading air, waiting for the fall. More

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      US economy going strong under Biden – Americans don’t believe it

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      Americans do not trust the government’s economic news – or the media’s reporting of it – according to a Harris poll conducted exclusively for the Guardian that presents the White House with a major hurdle as it pushes Biden’s economic record ahead of next year’s election.The US has roared back from the Covid recession by official measures. But two-thirds of Americans are unhappy about the economy despite consistent reports that inflation is easing and unemployment is close to a 50-year low. And the poll suggests many are unaware of or don’t believe the positive economic news the government has reported.The results illustrate a dramatic political split on economic views – with Republicans far more pessimistic than Democrats. But unhappiness about the economy is widespread.
      Two-thirds of respondents (68%) reported it’s difficult to be happy about positive economic news when they feel financially squeezed each month (Republicans: 69%, Democrats: 68%).
      Two-thirds of Americans (65%) believe that the economy is worse than the media makes it out to be rather than better (35%).
      In August the unemployment rate was 3.8%, close to a 50-year low. But the poll found that 51% wrongly believe that unemployment is nearing a 50-year high rather than those who believe it’s actually low (49%).
      The lack of confidence in the economy has many academics and politicians puzzled. Some have blamed the US’s polarized politics and this was illustrated in the poll. But Harris’s data also shows that fears are widespread – and reinforced by disbelief of or ignorance about official figures and a mistrust of the media’s reporting of them.Some 82% of Republicans and 66% of independents believe the economy is worse than the media’s portrayal. But nearly half of Democrats (49%) also said the media viewed the economy too favorably.Overall, the poll found widespread despondency about the state of the economy. More than half of Americans (53%) believe the economy is getting worse instead of better or staying the same. Republicans and independents are more likely to think it’s getting worse (72% and 58%, respectively, v Democrats: 32%), while more Democrats think it’s getting better (32% v Republicans: 8%, independents: 13%).The results paint a difficult picture for Joe Biden, who is making “Bidenomics” – his economic policy record – a central plank of his re-election platform.The views of those familiar with Bidenomics showed a perhaps unsurprising party split. Some 60% of Democrats believe his plans are improving the US economy overall compared with 12% of Republicans.There is a widespread belief that Bidenomics is good in theory but isn’t being implemented well – something both Democrats and Republicans agree with (62% v 58%).Biden supporters have just launched a $13m advertising campaign extolling the president’s economic achievements, which include a landmark $1.2tn infrastructure and climate bill, massive investment in domestic microchips production and green energy solutions. His legislative actions are predicted to create 1.5m jobs per year for the next decade.That message may be hard to sell given the widespread disbelief of and ignorance about the health of the US economy highlighted by the poll.As well as being wrong about the unemployment data, respondents were unaware of, or chose to mischaracterize, other major economic data points.skip past newsletter promotionafter newsletter promotionThe widest measure of economic growth – gross domestic product – increased at a 2.1% annualized rate last quarter and has been steadily improving since the Covid downturn. But more respondents (59%) believe that the US economy is shrinking this year than those who believe it is growing (41%). More Republicans (72%) and independents (63%) believe the economy is shrinking than do Democrats. But still, a sizeable 44% of Democrats believe the economy is shrinking.The S&P 500 stock market index is up 16% so far this year. But 59% of respondents wrongly said they believe the S&P is down for the year compared with those who said they believe it is up (41%). The majority of all those asked said the S&P was down whether Republican (66%), independent (60%) or Democrat (52%).US wages are, finally, growing faster than inflation. But 75% of those polled wrongfully believe that wages aren’t keeping up with inflation. That view is held by the majority of Republicans (84%), independents (75%) and Democrats (67%).There was some good news for Biden. The poll found that 75% of respondents support at least one of the four main branches of Bidenomics: improving infrastructure, attracting high-tech electronics manufacturing, building clean energy manufacturing facilities and attracting more high-paying union jobs.Still, 51% of Americans believe that government spending under the current administration is having a negative impact on the US economy (Republicans: 72%, independents: 54%, Democrats: 30%) rather than a positive impact (21%) or no impact (28%). And only just over a third of Democrats (35%) believe it’s having a positive impact (Republicans: 11%, independents: 16%).“All these perceptual-reality gaps underscore Biden’s difficulty in claiming credit for economic gains. Americans either view the economy through their politics or aren’t feeling it in real life, or both,” said John Gerzema, the CEO of Harris Poll.
      This survey was conducted online within the US by the Harris Poll from 1 to 3 September among a nationally representative sample of 2,055 US adults, where 1,063 were familiar with Bidenomics. More

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      US inflation in August rose to 3.7% amid sharp increase in energy prices

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      US inflation in August rose for the first time since June 2022, rising to 3.7% as a sharp increase in energy prices pushed prices up toward the end of the summer.Growth in prices still remains far below the decades-high inflation rates that were seen last summer, when the rate peaked at 9.1% in June. Still, an increase in inflation means the US economy is further from the Federal Reserve’s target rate of 2% and will probably make officials consider pushing interest rates up later this year.The price of energy commodities, including gas and oil, jumped up 10.5% over the last month, according to the latest Consumer Price Index data, which measures the prices of a basket of goods and services. Gas prices ticked up in August as Russia and Saudi Arabia continued aggressive cuts in supply, bringing the price of crude oil to 10-month high at $91 a barrel. Higher gas prices accounted for more than half of the increase in the overall inflation rate.Meanwhile core inflation, which measures the price of goods and services minus the volatile energy and food industries, actually decreased in August to 4.3%, down from 4.7% in July, reflecting the impact higher energy prices are having on the overall inflation rate.Even with the decrease in core inflation, which has been higher and going down at a slower rate than the 12-month inflation rate, inflation still remains far above the Federal Reserve’s target rate of 2%.Though price decreases have been seen in used cars and medical care services over the last few months, home prices have hit a near-record high in June, keeping core inflation stubbornly high. The median home price hit $413,80, the second-highest price ever, according to the National Association of Realtors. Home prices cooled slightly to $406,700 in July, but home prices still remain 7.3% higher than a year earlier.Even with inflation slightly up, the Fed is on track to keep interest rates the same at their next board meeting on 20 September. Economists say the Fed has had a pause planned for the meeting for a while as many officials say the economy has yet to feel the full effects of interest rates, which are at a 22-year high at 5.25% to 5.5%.But as the health of the economy continues to be hard to pin down – job growth has remained relatively stable even amid high interest rates, but inflation is still far from 2% – the Fed could still raise interest rates at future meetings. Future interest rate increases could introduce more volatility to the US economy, and potentially trigger a recession, though the Fed’s mission to bring down inflation has yet to bear dramatic consequences.The Fed chair, Jerome Powell, said last month that officials were aware of the precarity, saying they will “proceed carefully” as they decide what to do with interest rates. Powell has said the overall decline in inflation has been a “welcome development”, but it still remains high.“We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective,” he said. More

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      President centers ‘Bidenomics’ as 2024 re-election campaign gathers pace

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      As Joe Biden launches his 2024 re-election campaign, the White House is hoping to revamp the messaging on the president’s economic performance with a series of speeches, memos and the term “Bidenomics”.On Wednesday, Biden delivered what was billed as a major speech focused on the economy as he told an audience in Chicago that the Republican policy of “trickle-down economics” had “failed America”. In its place, Biden vowed to create policies that would prioritize growing the middle class, touted post-pandemic economic recovery and announced “Bidenomics is working” – one of 15 times he used the word over the course of his speech.Earlier in the week, a White House memo from two of Biden’s top advisers was sent to reporters and laid out a range of talking points. It touted the president’s various accomplishments on post-Covid economic recovery and job creation, while reiterating the theme that “Bidenomics is working.”“In the weeks and months ahead, the president, members of his cabinet, and senior administration officials will continue fanning out across the country to take the case for Bidenomics and the President’s Investing in America agenda directly to the American people,” the memo announced.The administration’s campaign appears to take aim at one of the president’s key vulnerabilities for the election, with polling showing voters have a dim assessment of how he has handled the economy. A Pew Research Center survey from this month found that inflation is the top concern among Republicans and Republican-leaning voters, while support for Democratic economic policies lags 12 points behind support for GOP policies. An AP/NORC poll from last month showed that only 33% of Americans supported Biden’s handling of the economy.The perceptions of Biden’s handling of the economy are at odds with a range of positive economic indicators that the White House is eager to highlight. Inflation has gone down to the lowest levels since 2021, while the administration has repeatedly touted months of consistent job growth and low unemployment. The US economy has generally outperformed economic experts’ forecasts, and for now has staved off a recession that seemed inevitable.But these gains have not appeared to resonate with voters, who have repeatedly given Biden poor marks on the economy as workers have struggled with rising prices that often outpaced growth in wages. Republicans have meanwhile been eager to capitalize on issues of inflation, labeling the spike “Bidenflation” and making it a frequent point of attack.Biden’s team attempted to defend the president’s economic achievements in the past, including dedicating a significant portion of his State of the Union address in February to highlight his record on job growth and unemployment. The White House even passed out small “palm cards” to Democratic lawmakers with a list of talking points about the economy. But as the presidential election begins to take shape it appears these efforts are intensifying, attempting to go on the offensive with a positive message about the administration’s economic agenda.Some Democratic politicians have embraced the talking points, earning them favorable positions as surrogates for the president. The California governor, Gavin Newsom, reportedly won praise from administration officials this month after an appearance on the Fox News host Sean Hannity’s show, in which Newsom forcefully challenged assertions that Biden’s economic plans were struggling and touted the president’s job creation.The “Bidenomics” memo sent to reporters earlier this week was the work of two longtime Biden advisers, Anita Dunn and Mike Donilon. Dunn is Biden’s most senior communications adviser and played a key role in turning around his 2020 presidential election bid. Donilon has worked with Biden for decades, and as his chief strategist during the 2020 election was key in shaping the campaign’s messaging.Biden initially joked about the “Bidenomics” term at a rally on 17 June hosted by union members in Philadelphia, where he said it was “time to end the trickle-down economics theory” that was commonly associated with former President Ronald Reagan’s plan of ‘Reaganomics’.“We decided to replace this theory with what the press has now called ‘Bidenomics’,” the president said. “I don’t know what the hell that is. But it’s working.” More