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      Is the American Economy on the Mend?

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      Almost four years have passed since Covid-19 struck. In America, the pandemic killed well over a million people and left millions more with lingering health problems. Much of normal life came to a halt, partly because of official lockdowns but largely because fear of infection kept people home.The big question in the years that followed was whether America would ever fully recover from that shock. In 2023 we got the answer: yes. Our economy and society have, in fact, healed remarkably well. The big remaining question is when, if ever, the public will be ready to accept the good news.In the short run, of course, the pandemic had severe economic and social effects, in many ways wider and deeper than almost anyone expected. Employment fell by 25 million in a matter of weeks. Huge government aid limited families’ financial hardship, but maintaining Americans’ purchasing power in the face of a disrupted economy meant that demand often exceeded supply, and the result was overstretched supply chains and a burst of inflation.At the same time, the pandemic reduced social interactions and left many people feeling isolated. The psychological toll is hard to measure, but the weakening of social ties contributed to a range of negative trends, including a surge in violent crime.It was easy to imagine that the pandemic experience would leave long-term scars — that long Covid and early retirements would leave us with a permanently reduced labor force, that getting inflation down would require years of high unemployment, that the crime surge heralded a sustained breakdown in public order.But none of that happened.You may have heard about the good economic news. Labor force participation — the share of adults in today’s work force — is actually slightly higher than the Congressional Budget Office predicted before the pandemic. Measures of underlying inflation have fallen more or less back to the Federal Reserve’s 2 percent target even though unemployment is near a 50-year low. Adjusted for inflation, most workers’ wages have gone up.For some reason I’ve heard less about the crime news, but it’s also remarkably good. F.B.I. data shows that violent crime has subsided: It’s already back to 2019 levels and appears to be falling further. Homicides probably aren’t quite back to 2019 levels, but they’re plummeting.None of this undoes the Covid death toll or the serious learning loss suffered by millions of students. But overall both our economy and our society are in far better shape at this point than most people would have predicted in the early days of the pandemic — or than most Americans are willing to admit.For if America’s resilience in the face of the pandemic shock has been remarkable, so has the pessimism of the public.By now, anyone who writes about the economic situation has become accustomed to mail and social media posts (which often begin, “You moron”) insisting that the official statistics on low unemployment and inflation are misleading if not outright lies. No, the Consumer Price Index doesn’t ignore food and energy, although some analytical measures do; no, grocery prices aren’t still soaring.Rather than get into more arguments with people desperate to find some justification for negative economic sentiment, I find it most useful to point out that whatever American consumers say about the state of the economy, they are spending as if their finances are in pretty good shape. Most recently, holiday sales appear to have been quite good.What about crime? This is an area in which public perceptions have long been notoriously at odds with reality, with people telling pollsters that crime is rising even when it’s falling rapidly. Right now, according to Gallup, 63 percent of Americans say that crime is an “extremely” or a “very” serious problem for the United States — but only 17 percent say it’s that severe a problem where they live.And Americans aren’t acting as if they’re terrified about crime. As I’ve written before, major downtowns have seen weekend foot traffic — roughly speaking, the number of people visiting the city for fun rather than work — recover to prepandemic levels, which isn’t what you’d expect if Americans were fleeing violent urban hellscapes.So whatever Americans may say to pollsters, they’re behaving as if they live in a prosperous, fairly safe (by historical standards) country — the country portrayed by official statistics, although not by opinion polls. (Disclaimer: Yes, we have vast inequality and social injustice. But this is no more true now than it was in earlier years, when Americans were far more optimistic.)The big question, of course, is whether grim narratives will prevail over relatively sunny reality in the 2024 election. There are hints in survey data that the good economic news is starting to break through, but I don’t know of any comparable hints on crime.In any case, what you need to know is that America responded remarkably well to the economic and social challenges of a deadly pandemic. By most measures, we’re a nation on the mend. Let’s hope we don’t lose our democracy before people realize that.The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: letters@nytimes.com.Follow the New York Times Opinion section on Facebook, Instagram, TikTok, X and Threads. More

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      More Than Words: 10 Charts That Defined 2023

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      Some years are defined by a single event or person — a pandemic, a recession, an insurrection — while others are buffeted by a series of disparate forces. Such was 2023. The economy and inflation remained front of mind until the war in Gaza grabbed headlines and the world’s attention — all while Donald Trump’s […] More

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      Matt Damon, Fran Drescher and an Indian Soybean Farmer on 2024

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      What are your hopes for 2024? See how they compare with those of 11 people I put that question to. (Most of them replied by email. The people from Afghanistan and India spoke by phone.)Fran Drescher, an actress and the president of SAG-AFTRA, which staged a 118-day strike against movie and television producers this year:In 2024, I am looking forward to a sudden and essential collective human emotional growth spurt, whereby empathy becomes the main emotion that informs all behavior.Andrew Marsh, the chief executive of Plug Power, a fuel cell supplier:My hope is to see 2024 as the year we get serious about decarbonizing hard-to-abate heavy industrial manufacturing sectors. Building out a nascent U.S. hydrogen industry is essential to moving these industrial processes to carbon neutrality.Uri Levine, an entrepreneur and a co-founder of Waze:I want people to find a purpose in life. When you have a life purpose or figure out what your destiny is, your life becomes simpler, everything is clearer, and you’re happier, healthier and richer. You know what you have to do. The purpose becomes the north star to guide you. My purpose is to create value.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More

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      This Economy Has Bigger Problems Than ‘Bad Vibes’

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      The economy is growing. Wages are up. Unemployment is low. Income inequality is narrowing. The fearmongering about inflation proved to be, well, wrong. According to many economy-watchers, Americans should be sending the Biden administration a gift basket full of positive vibes — and votes.Instead, consumer confidence polling paints a different picture. A recent Times/Siena poll found that only 2 percent of registered voters said economic conditions are “excellent,” and only a further 16 percent said they were “good.” While economic indicators suggest that the economy is healthy and growing, the American public doesn’t feel that way. Why the perception gap?One popular theory is that media narratives have duped Americans into believing that they’re having a rough time, when, in fact, they’re doing fine. Kyla Scanlon coined “vibe-cession” last year to describe this gap between perception and economic indicators. Since then, a story has emerged about consumer confidence: that poor perception and political polarization are mostly to blame. Brian Beutler, who writes the newsletter “Off Message,” calls out social media and misinformation for reinforcing the “bad economy” belief. Claudia Sahm, a former Federal Reserve economist, wrote that a “toxic brew” of human bias for negative information and the attention economy leads to consumer pessimism.The Biden administration’s messaging about the strength of the economy will shape President Biden’s presidential campaign. If Americans’ negative vibes about the economy persist, Donald Trump will surely bludgeon Biden with a line of attack that he relishes delivering. One of Trump’s favorite claims is that he is a successful businessman who ran a strong economy as president. Too few people believe that Trump, the G.O.P.’s favored candidate, will go to jail between now and the 2024 election. And so it should worry Biden that, according to that Times/Siena poll, a majority of likely voters trust Trump more than Biden on the economy.Why aren’t more voters giving President Biden credit for his strong economy?The bad vibes explanation is sound on the indicators, but that story doesn’t think too highly of Americans. It does not acknowledge voters’ dissatisfaction. It also does not offer a way forward. What do you do about bad vibes, exactly? Hire an exorcist?Looking at the economy through more than macroeconomic indicators could tell us a more compelling, empowering story. What if people are not being manipulated by the media, confused about the fundamentals or biased against Democrats? What we know about historical changes to how the economy works and for whom it works might tell a different story with more potential for the future.One such story considers what we consume and how much harder (and expensive) it is to procure it. A lot of our consumption is about meeting our basic needs. Housing, food, and energy come to mind. The economic fundamentals on these may be trending positively, but the bad vibes narrative undersells how miserable that part of the economy can feel.People are struggling with mortgage interest rates, housing shortages and pricey grocery bills. They’re also consuming to make their lives work: on expensive, hard-to-manage child care, health care and convenience spending — things like restaurants, travel, delivery services, and on-demand help — which are necessary for balancing work and life demands. Even when those services are affordable, they are full of friction. That is a nice way of saying the consumer experience sucks. It is hard to schedule things, hard to get customer service, hard to judge the quality of what you are buying, and hard to get amends when an experience goes bad. There is a reason industry analysts have reported that customer brand loyalty is low and customer rage is high.In 2021, the American Rescue Plan created a temporary social safety net for millions of Americans that may have changed how they feel about their spending. For younger Americans, massive stimulus was a taste of the Great Society investment that benefited their grandparents and great-grandparents. Child care subsidies, direct cash transfers, food supplements, eviction moratoriums, and flexible work from home arrangements temporarily lifted many low-income people out of poverty. Those provisions also exposed many working and middle class workers to the difference that economic policy could make — for the better — in their lives.Then, fearing inflationary pressures on the economy, Congress let the American Rescue Plan’s most powerful investments, and therefore the most substantial government support for social reproduction in a generation, end. But social reproduction — the caretaking of people, relationships and systems that make our society work — still had to be done. Reallocating your spending from child care to student loan payments, for example, might be feasible, but it is not particularly enjoyable. That assumes one can find accessible child care or an in-network doctor or apartment. When stimulus funding ended, a lot of services people rely on became harder to find and afford.When people talk about the work that makes the economy possible, they often think first and most about child care. There is a good reason for that. Child care is necessary work. It is often unpaid work (when done by mothers) or underpaid work (when done by child care workers). The American Rescue Plan sent $39 billion to states, with the aim of stabilizing child care centers. After some of that funding expired in September, the problems typical of our country’s child care shortage re-emerged. Depending on where one lives, child care centers’ capacity may not have returned to prepandemic levels, producing a lot of anxiety and wait-lists for families. As one of my colleagues recently put it, anyone who thinks he just has bad vibes hasn’t tried to find summer day care for young children.Then there is the rest of the hidden labor that has to happen so people can go to work, that is so often invisible and has historically been the domain of women: caring for a household and aging relatives, receiving the plumber or delivery truck and, of course, having the time (and money) to make meals, manage doctors appointments, chauffeur kids to after-school activities and clean the house.For the most part, the industries that support that kind of invisible labor are more difficult to find, harder to obtain and more expensive to buy than they were four years ago. Those industries also gained a lot of not-so-enjoyable friction. Industry surveys suggest that customer service has gotten worse and consumers are angry about it. That coarsening of consumerism affects millions, but women, in particular, pay a price due to the outsize role they play in managing hidden labor.Jessica Calarco, a sociologist at the University of Wisconsin, calls the way our society relies on families to independently support social reproduction a “D.I.Y. society.” Research demonstrates repeatedly that women, especially, are sacrificing to balance paid work with all that D.I.Y. labor. Healthy economic indicators, like low unemployment, also put the squeeze on women by raising the price and increasing the difficulty of hiring a little help.The bad vibes story emphasizes that lower-income workers have benefited the most from the growing economy. It is true. Over the past four years, at the macro level, workers at the bottom of the income distribution made greater gains than those at the top. That wage compression means some good things, for example: People without college degrees are benefiting from a strong labor market. The female-dominated child care field is a good example. Acknowledging that child care is skilled labor empowers the workers to demand better working conditions.However, those positives also present a challenge. Using child care workers as an example again, as their wages stagnated and their skills upgraded, many of them left for better paying jobs. That is the case for a lot of the jobs that do the vital social reproduction work in our economy. There are now fewer people to do the low-paid, low status work than there was before the Covid-19 pandemic. Illness pushed some workers out. Others left for better economic opportunities. The social reproduction work needs to be done but there are fewer workers able or willing to do it.Low unemployment means more Americans are working. It also means more people are experiencing our social reproduction crisis firsthand. This has long been a reality for female workers. Our crisis of who is supposed to do all the undervalued labor that underpins economic life has pushed many women out of the work force, reduced their participation, and generally made work more stressful. Men now take on moderately more responsibility for household tasks. With that shift, the problem of balancing care work and paid work has become urgent for both men and women. Even as millions of Americans are earning more, they face stiff competition from high-income earners for a smaller pool of services — including schools, health care, home maintenance and retail services — to make it all work.In short, people may have more money. But it has become harder to buy the services they need and more expensive to buy the goods that they want. The very wealthy can spend their way out of that bind, simply by paying more for housekeeping and grocery delivery and nannies. But everyone else needs some sort of partnership with the government to make the act of working not just affordable, but accessible. The Biden administration has not solved that bigger crisis (neither did the Trump administration). Whether Americans are blaming the right administration for their woes, their economic lives legitimately feel tougher even as they work more and earn more money.Bad economic storytelling tells millions of Americans in an election year that they only think that they are struggling financially. Good economic storytelling would figure out how to account for their experiences and imagine a better future. People need child care, and dentists, and affordable housing, and safe transportation, and accessible education. Telling them that to instead enjoy the fact that they can buy a Tesla is a fundamental misunderstanding of what economic policy is supposed to do, which is to make people’s lives better.Tressie McMillan Cottom (@tressiemcphd) became a New York Times Opinion columnist in 2022. She is an associate professor at the University of North Carolina at Chapel Hill School of Information and Library Science, the author of “Thick: And Other Essays” and a 2020 MacArthur fellow.Source images by Ivan Bajic and kutaytanir/Getty ImagesThe Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: letters@nytimes.com.Follow the New York Times Opinion section on Facebook, Instagram, TikTok, X and Threads. More

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      Biden Faces Economic Challenges as Cost-of-Living Despair Floods TikTok

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      Economic despair dominates social media as young people fret about the cost of living. It offers a snapshot of the challenges facing Democrats ahead of the 2024 election.Look at economic data, and you’d think that young voters would be riding high right now. Unemployment remains low. Job opportunities are plentiful. Inequality is down, wage growth is finally beating inflation, and the economy has expanded rapidly this year.Look at TikTok, and you get a very different impression — one that seems more in line with both consumer confidence data and President Biden’s performance in political polls.Several of the economy-related trends getting traction on TikTok are downright dire. The term “Silent Depression” recently spawned a spate of viral videos. Clips critical of capitalism are common. On Instagram, jokes about poor housing affordability are a genre unto themselves.Social media reflects — and is potentially fueling — a deep-seated angst about the economy that is showing up in surveys of younger consumers and political polls alike. It suggests that even as the job market booms, people are focusing on long-running issues like housing affordability as they assess the economy.The economic conversation taking place virtually may offer insight into the stark disconnect between optimistic economic data and pessimistic feelings, one that has puzzled political strategists and economists.Never before was consumer sentiment this consistently depressed when joblessness was so consistently low. And voters rate Mr. Biden badly on economic matters despite rapid growth and a strong job market. Young people are especially glum: A recent poll by The New York Times and Siena College found that 59 percent of voters under 30 rated the economy as “poor.”President Biden’s campaign is working with content creators on TikTok to “amplify a positive, affirmative message” on the economy, a deputy campaign manager said.Desiree Rios for The New York TimesThat’s where social media could offer insight. Popular interest drives what content plays well — especially on TikTok, where going viral is often the goal. The platforms are also an important disseminator of information and sentiment.“A lot of people get their information from TikTok, but even if you don’t, your friends do, so you still get looped into the echo chamber,” said Kyla Scanlon, a content creator focused on economic issues who posts carefully researched explainers across TikTok, Instagram and X.Ms. Scanlon rose to prominence in the traditional news media in part for coining and popularizing the term “vibecession” for how bad consumers felt in 2022 — but she thinks 2023 has seen further souring.“I think people have gotten angrier,” she said. “I think we’re actually in a worse vibecession now.”Surveys suggest that people in Generation Z, born after 1996, heavily get their news from social media and messaging apps. And the share of U.S. adults who turn to TikTok in particular for information has been steadily climbing. Facebook is still a bigger news source because it has more users, but about 43 percent of adults who use TikTok get news from it regularly, according to a new survey by the Pew Research Center.It is difficult to say for certain whether negative news on social media is driving bad feelings about the economy, or about the Biden administration. Data and surveys struggle to capture exactly what effect specific news delivery channels — particularly newer ones — have on people’s perceptions, said Katerina Eva Matsa, director of news and information research at the Pew Research Center.“Is the news — the way it has evolved — making people view things negatively?” she asked. It’s hard to tell, she explained, but “how you’re being bombarded, entangled in all of this information might have contributed.”More Americans on TikTok Are Going There for NewsShare of each social media site’s users who regularly get news there, 2020 vs. 2023

      Source: Pew Research Center surveys of U.S. adultsBy The New York TimesMr. Biden’s re-election campaign team is cognizant that TikTok has supplanted X, formerly known as Twitter, for many young voters as a crucial information source this election cycle — and conscious of how negative it tends to be. White House officials say that some of those messages accurately reflect the messengers’ economic experiences, but that others border on misinformation that social media platforms should be policing.Rob Flaherty, a deputy campaign manager for Mr. Biden, said the campaign was working with content creators on TikTok in an effort to “amplify a positive, affirmative message” about the economy.A few political campaign posts promoting Mr. Biden’s jobs record have managed to rack up thousands of likes. But the “Silent Depression” posts have garnered hundreds of thousands — a sign of how much negativity is winning out.In those videos, influencers compare how easy it was to get by economically in 1930 versus 2023. The videos are misleading, skimming over the crucial fact that roughly one in four adults was unemployed in 1933, compared with four in 100 today. And the data they cite are often pulled from unreliable sources.But the housing affordability trend that the videos spotlight is grounded in reality. It has gotten tougher for young people to afford a property over time. The cost of a typical house was 2.4 times the typical household income around 1940, when government data start. Today, it’s 5.8 times.Nor is it just housing that’s making young people feel they’re falling behind, if you ask Freddie Smith, a 35-year-old real estate agent in Orlando, Fla., who created one especially popular “Silent Depression” video. Recently, it is also the costs of gas, groceries, cars and rent.“I think it’s the perfect storm,” Mr. Smith said. “It’s this tug of war that millennials and Gen Z are facing right now.”Inflation has cooled notably since peaking in the summer of 2022, which the Biden administration has greeted as a victory. Still, that just means that prices are no longer climbing as rapidly. Key costs remain noticeably higher than they were just a few years ago. Groceries are far more expensive than in 2019. Gas was hovering around $2.60 a gallon at the start of 2020, for instance, but is around $3.40 now.Young Americans Are Spending More and Earning MoreIncome after taxes and expenditures for householders under 25

      Source: Bureau of Labor Statistics Consumer Expenditure Survey By The New York TimesThose higher prices do not necessarily mean people are worse off: Household incomes have also gone up, so people have more money to cover the higher costs. Consumer expenditure data suggests that people under 25 — and even 35 — have been spending a roughly equivalent or smaller share of their annual budgets on groceries and gas compared with before the pandemic, at least on average.“I think things just feel harder,” said Betsey Stevenson, a professor of public policy and economics at the University of Michigan, explaining that people have what economists call a “money illusion” and think of the value of a dollar in fixed terms.And housing has genuinely been taking up a bigger chunk of the young consumer’s budget than in the years before the pandemic, as rents, home prices and mortgage costs have all increased.Housing Is Eating Up Young People’s BudgetsShare of spending devoted to each category for people under 25

      Source: Bureau of Labor Statistics Consumer Expenditure SurveyBy The New York TimesIn addition to prices, content about student loans has taken off in TikTok conversations (#studentloans has 1.3 billion views), and many of the posts are unhappy.Mr. Biden’s student-loan initiatives have been a roller coaster for millions of young Americans. He proposed last year to cancel as much as $20,000 in debt for borrowers who earn less than $125,000 a year, a plan that was estimated to cost $400 billion over several decades, only to see the Supreme Court strike down the initiative this summer.Mr. Biden has continued to push more tailored efforts, including $127 billion in total loan forgiveness for 3.6 million borrowers. But last month, his administration also ended a pandemic freeze on loan payments that applied to all borrowers — some 40 million people.The administration has tried to inject more positive programming into the social media discussion. Mr. Biden met with about 60 TikTok creators to explain his initial student loan forgiveness plan shortly after announcing it. The campaign team also sent videos to key creators, for possible sharing, of young people crying when they learned their loans had been forgiven.The Biden campaign does not pay those creators or try to dictate what they are saying, though it does advertise on digital platforms aggressively, Mr. Flaherty said.“It needs to sound authentic,” he said. More

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      Bad Feelings About the Economy Sour Arizona Voters on Biden

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      The White House has hailed new investments and new jobs, yet many voters in a battleground state are chafing at inflation and housing costs.If President Biden hopes to replicate his narrow victory in Arizona, he will need disillusioned voters like Alex Jumah. An immigrant from Iraq, Mr. Jumah leans conservative, but he said he voted for Mr. Biden because he could not stomach former President Trump’s anti-Muslim views.That was 2020. Since then, Mr. Jumah, 41, said, his economic fortunes cratered after he contracted Covid, missed two months of work as a trucking dispatcher, was evicted from his home and was forced to move in with his mother. He said he could no longer afford an apartment in Tucson, where rents have risen sharply since the pandemic. He is now planning to vote for Mr. Trump.“At first I was really happy with Biden,” he said. “We got rid of Trump, rid of the racism. And then I regretted it. We need a strong president to keep this country first.”His anger helps explain why Mr. Biden appears to be struggling in Arizona and other closely divided 2024 battleground states, according to a recent poll by The New York Times and Siena College.Surveys and interviews with Arizona voters find that they are sour on the economy, despite solid job growth in the state. The Biden administration also fails to get credit for a parade of new companies coming to Arizona that will produce lithium-ion batteries, electric vehicles and computer chips — investments that the White House hails as emblems of its push for a next generation of American manufacturing.Breanne Laird, 32, a doctoral student at Arizona State University and a Republican, said she sat out the 2020 elections in part because she never thought Arizona would turn blue. But after two years without any pay increases and after losing $170,000 trying to fix and flip a house she bought in suburban Phoenix, she said she was determined to vote next year, for Mr. Trump.She bought the investment property near the peak of the market last year, and said she watched its value slip as mortgage rates rose toward 8 percent. She said she had to max out credit cards, and her credit score fell.Arizona’s housing market fell farther than most parts of the country after the 2008 financial crisis, and it took longer to recover. Few economists are predicting a similar crash now, but even so, Ms. Laird said she felt frustrated, and was itching to return Mr. Trump to power.“I’m even further behind,” she said. “I see the value in voting, and plan to vote as much as possible.”Voters waited in line to cast their ballots at dawn in Guadalupe, Ariz., in 2020.Adriana Zehbrauskas for The New York TimesA majority of Arizona voters in the recent New York Times/Siena survey rated the country’s economy as poor. Just 3 percent of voters said it was excellent.Arizona experienced some of the worst inflation in the country, largely because housing costs shot upward as people thronged to the state during the pandemic. Average monthly rents in Phoenix rose to $1,919 in September from $1,373 in early 2020, a 40 percent increase according to Zillow. Average rents across the country rose about 30 percent over the same period.Home prices and rents have fallen from their peaks this year, but even so, economists say that the state is increasingly unaffordable for middle-class families, whose migration to Arizona has powered decades of growth in the state.Arizona’s economy sprinted out of the pandemic, but economists said the speed of new hiring and consumer spending in the state has now eased. The state unemployment rate of 4 percent is about equal to the national average, and the quarterly Arizona Economic Outlook, published by the University of Arizona, predicts that the state will keep growing next year, though at a slower pace.Arizona has added 280,000 jobs since Mr. Biden took office, according to the federal Labor Department, compared with 150,000 during Mr. Trump’s term. Phoenix just hosted the Super Bowl, usually a high-profile boost to the local mood and economy.Barely a week goes by without Arizona’s first-term Democratic governor, Katie Hobbs, visiting a groundbreaking or job-training event to talk up the state’s economy or the infrastructure money arriving from Washington.Arizona Gov. Katie Hobbs on stage during the 2023 Inauguration Ceremony at the Arizona State Capitol in Phoenix.Rebecca Noble for The New York TimesMr. Biden was even farther behind Mr. Trump in another poll being released this week by the Phoenix-based firm Noble Predictive Insights. That survey of about 1,000 Arizona voters said Mr. Trump had an eight-point lead, a significant swing toward Republicans from this past winter, when Mr. Biden had a two-point edge.Mike Noble, the polling firm’s chief executive, said that Mr. Trump had built his lead in Arizona by consolidating support from Republicans and — for the moment — winning back independents. Respondents cited immigration and inflation as their top concerns.“Economists say, ‘Look at these indicators’ — People don’t care about that,” Mr. Noble said. “They care about their day-to-day lives.”Bill Ruiz, the business representative of Local 1912 of the Southwest Mountain States Carpenters Union, said the Biden administration’s infrastructure bill and CHIPS Act were bringing billions of dollars into Arizona, and helping to power an increase in union jobs and wages. Carpenters in his union were working 7 percent more hours than they were a year ago, and the union’s membership has doubled to 3,400 over the past five years.“We’re making bigger gains and bigger paychecks,” he said. “It blows me away people don’t see that.”Political strategists say Mr. Biden could still win in Arizona next year, if Democrats can reassemble the just-big-enough coalition of moderate Republicans and suburban women, Latinos and younger voters who rejected Mr. Trump by 10,000 votes in 2020. It was the first time in more than two decades that a Democrat had carried Arizona and its 11 electoral votes.The same pattern was seen in last year’s midterm elections, when Arizona voters elected Democrats running on abortion rights and democracy for governor, attorney general and secretary of state, defeating a slate of Trump-endorsed hard-right Republicans.Abortion is still a powerful motivator and a winning issue for Democrats, but many Arizona voters now say their dominant concerns are immigration, inflation and what they feel is a faltering economy.Grant Cooper, 53, who retired from a career in medical sales, is the kind of disaffected Republican voter that Democrats hope to peel away next year. He supports abortion rights and limited government, and while he voted for Mr. Trump in 2020, he said he would not do so again.He said his personal finances and retirement investments were in decent shape, and he did not blame the president for the spike in gas prices in 2022. Still, he said he plans to vote for a third-party candidate next year, saying that both Mr. Biden and Mr. Trump were out-of-touch relics of a two-party system that was failing to address long-term challenges.“They squibble and squabble about the dumbest things, rather than looking at things that could improve our economy,” he said. “The Republicans are fighting the Democrats. The Democrats are fighting the Republicans. And what gets done? Nothing.”David Martinez, 43, is emblematic of the demographic shift that has made Arizona such a battleground. He and his family moved back to Phoenix after 15 years in the San Francisco Bay Area, where he still works remotely in the tech industry. He voted for Mr. Biden in 2020, and said he was worried about the threat Mr. Trump poses to free elections, democracy and America’s future in NATO.His working-class friends and extended family don’t share the same concerns. These days, the political conversations with them usually begin and end with the price of gas (now falling) and eggs (still high).“It falls on deaf ears,” Mr. Martinez said of his arguments about democracy. “They feel down about Biden and inflation and his age. They’re open to giving Trump a second term or skipping the election entirely.”Camille Baker More

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      A Report Card for Bidenomics

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      Voters’ negative perceptions about the economy are weighing on President Biden’s poll numbers. Here’s what his economic policies have, and haven’t, accomplished.President Biden is finding it hard to sell Americans on his economic track record.Kent Nishimura for The New York TimesWhere the economy is working (and where it isn’t) With a year to go before Election Day, polls increasingly show that American voters believe next year will be a rematch between President Biden and Donald Trump — with the former president in the lead in key battleground states despite his legal troubles (more on that below).Biden’s troubles stem in large part from negative perceptions about the economy, even as several indications show that it is performing strongly. Here’s a deeper look at what “Bidenomics” has, and hasn’t, accomplished.On the positive side: jobs. Since Biden took office, employers have created 14 million jobs, and the unemployment rate has been hovering around a 50-year-low for months.The president has also been talking up signature economic accomplishments like the Infrastructure Investment and Jobs Act, which he argues have helped rebuild rural America and invigorated the economy. “Bidenomics is just another way of saying the American dream,” he said in a speech. It’s not a stretch. The economy grew last quarter at nearly 5 percent, belying a global slowdown.On the negative side: inflation. Wages have been growing slowly, but they’ve been offset by rising prices, Biden’s Achilles’ heel. Republicans have blamed the White House’s economic policies for soaring consumer prices, which hit a 40-year high in the summer of 2022.Many economists say global factors are probably more to blame. But the perception of Biden’s culpability here is hurting him.A partial win: the markets. Investors tend to give high marks to presidents whose tenures coincide with strong investment returns. The S&P 500 has gained nearly 15 percent since Biden’s inauguration, weathering much of the slump set off by the Fed’s historic rates-tightening policy. (The bond market has gone in the opposite direction.)That’s decent, but pales in comparison with the Trump years, when the benchmark index climbed more than 65 percent.Biden has been touring the country — on Monday, he was in Delaware to promote federal money flowing to Amtrak, the rail operator — to refocus the public’s perceptions of his economic achievements. Meanwhile, questions swirl over whether Biden can eventually overtake Trump.A reminder: The DealBook Summit is on Nov. 29. Among the guests are Bob Iger of Disney; Lina Khan of the F.T.C.; and David Zaslav of Warner Bros. Discovery. You can apply to attend here.HERE’S WHAT’S HAPPENING Uber’s latest earnings miss expectations. The ride-hailing giant said on Tuesday that it had earned 10 cents per share in the third quarter, below the 12 cents that analysts had forecast. But the company argued that its business showed strong growth in its core mobility division.OpenAI seeks to build on its runaway success. The Microsoft-backed A.I. start-up said that its chatbot, ChatGPT, now had over 100 million weekly active users, giving it a formidable lead in the race to capture artificial intelligence customers. The company also introduced an online store that will let users build customized chatbots.Striking Hollywood actors push back on studios’ latest contract offer. The SAG-AFTRA union said that the “last, best and final” bid still fell short on key issues like the use of A.I., making it unclear when its nearly four-month strike will end. In other labor news, Starbucks will raise the average salary of hourly workers by at least 3 percent.Trump puts his legal liabilities on displayDonald Trump may be handily leading the 2024 election polls. But his appearance in court on Monday, testifying in a civil fraud lawsuit filed by New York State, appeared to do him no favors in efforts to hold onto his business empire.It was a reminder that, while he’s riding high in the presidential race, the former president still faces a thicket of legal battles that could cost him financially and, perhaps, politically.Here are some notable moments from Trump’s testimony:Trump conceded that he had played a role in valuing his company’s properties, an issue at the heart of the case. (New York prosecutors argue that Trump illicitly inflated his net worth to defraud banks and insurers.) Of the company’s financial statements, he said, “I would look at them, I would see them, and I would maybe on occasion have some suggestions.”But Trump also sought to underplay the importance of those statements, saying they were so riddled with disclaimers that they were “worthless.” He promised, unprompted, that some of his bankers would testify in his defense.Trump also assailed the presiding judge, Arthur Engoron, for having decided before the trial that fraud was committed. Engoron appeared exasperated, telling the former president to answer questions and stop delivering speeches.The testimony was a reminder of his political baggage, which was also an undercurrent of the endorsement of Ron DeSantis on Monday by Kim Reynolds, Iowa’s popular governor. Reynolds, whose state’s caucuses could be crucial in bolstering a Trump rival, said that the U.S. needed a president “who puts this country first and not himself” — a thinly veiled rebuke of Trump.His legal issues don’t appear to have dented his popularity. He has contended that he is being politically persecuted — “People like you go around and try to demean me and try to hurt me,” he told a state lawyer on Monday — an argument that some of his supporters have embraced.In a sign of his enduring political strength, the betting site PredictIt puts Trump’s odds of winning the nomination on Monday at more than four times that of his nearest competitor in its market, Nikki Haley.Dina Powell McCormick, in 2017, when she was a deputy national security adviser during the Trump presidency.Al Drago for The New York TimesExxon Mobil taps a Wall Street and D.C. power player Dina Powell McCormick, a former Goldman Sachs executive and onetime Trump administration official, is joining the board of Exxon Mobil effective Jan. 1. Her appointment comes as energy groups have embarked on a series of big deals on the back of soaring oil prices and bumper profits.Powell McCormick has long been one of the most senior women on Wall Street. Before joining BDT & MSD partners, an investment and advisory firm, earlier this year, she spent 16 years at Goldman Sachs. Powell McCormick led the Wall Street giant’s global sovereign business and sustainability, and she was a member of its management committee, among other roles.Powell McCormick has also been a Washington power player. She has spent more than a dozen years working in government. From 2017 to 2018, she was a deputy national security adviser to Trump and played a significant role on Middle East policy, including efforts to broker a peace deal between Israel and the Palestinians. (Her husband, David McCormick, is a former C.E.O. of the hedge fund Bridgewater and was a Treasury Department official under Hank Paulson. He is running for Senate in Pennsylvania as a Republican.)Powell McCormick’s appointment even won backing from Mike Bloomberg, who is spending billions to fight climate change — a sign of how wide-ranging her political and business relationships are.“Dina has been a close partner for years through her role as global head of sustainability at Goldman Sachs,” Bloomberg said, “and we have teamed up to create new partnerships that invest in market-driven ways to create clean energy and advance climate transition goals.”Energy giants are on a deal spree. Exxon reported quarterly profits of $9.1 billion last month, as oil prices have surged and demand has skyrocketed after Russia’s invasion of Ukraine. In October, Exxon agreed to acquire the shale oil specialist Pioneer Natural Resources for around $60 billion and Chevron struck a $53 billion deal to buy Hess. Exxon’s board had been in the spotlight over the energy transition. Engine No. 1, an activist investor, won three seats after targeting the company over its governance and environmental track record. But two years later, the firm changed course, saying that Exxon had made big changes. Exxon, however, has resisted calls to pour more money into renewable energy, arguing that its money is better on low-carbon investments.Tracing WeWork’s rise and spectacular fallWeWork finally filed for bankruptcy protection on Monday, after years of struggling with crushing debt and the coronavirus pandemic’s emptying out of office spaces — and that’s even after it had abandoned the runaway growth it pursued under its co-founder, Adam Neumann.The company that sought Chapter 11 is a shell of the real estate juggernaut that first sought to go public at a $47 billion valuation. (Its stock is down 98 percent this year.) Here’s how the business once lauded by the Japanese tech investor SoftBank as a revolution went astray.WeWork has been on its heels since it scrapped its I.P.O. plans in 2019. The company had been riding high, buoyed by Neumann’s promises that the start-up — whose business involved leasing out office space for co-working — would “elevate the world’s consciousness.” But then:Prospective investors blanched at the company’s steep losses, lax corporate governance and the controversies that dogged Neumann. (Activities on private jets were among them.) And the S.E.C. criticized the company’s disclosure involving mismatches between long-term financial obligations and its short-term assets. Neumann stepped down after WeWork shelved its I.P.O., and SoftBank provided it with a multibillion-dollar lifeline.Under a new C.E.O., Sandeep Mathrani, WeWork confronted the devastating effect of pandemic lockdowns and the rise of remote working. The company went public — via a blank-check vehicle — in 2021, while it started closing locations and renegotiating leases.Mathrani left in May, reportedly after clashing with SoftBank. His replacement, David Tolley, has kept trying to right the ship, but WeWork warned in August that there was “substantial doubt” about its future. Last month, it said it would miss interest payments on its debt.WeWork’s filing raises questions about the fate of commercial real estate. The company noted on Monday that it had reached agreements with about 92 percent of creditors holding secured debt. Its restructuring involves reducing its real estate portfolio.The company is one of the largest corporate tenants in New York and London, and any move to shed more of its leases would hurt commercial landlords that are themselves struggling to pay their debts.THE SPEED READ DealsResearch analysts at some of the banks that took Birkenstock public wrote in their initial reports on the sandal maker that its I.P.O. was valued too high. (Bloomberg)“Warring Billionaires, a Rogue Employee, a Divorce: One Hedge Fund’s Tale of Woe” (NYT)PolicyIntel is reportedly the leading candidate to land billions of dollars in federal funding to build secure plants to make chips for use by the U.S. military and intelligence agencies. (WSJ)A man who posed as a billionaire rabbi and made a $290 million takeover bid for the retailer Lord & Taylor was sentenced to more than eight years in prison. (Bloomberg)Best of the restDisney hired Hugh Johnston, the longtime finance chief at PepsiCo, as its new C.F.O. (CNBC)The founder of the dating app Bumble, Whitney Wolfe Herd, is stepping down as C.E.O. (NYT)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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      Union Victories May Lift Biden, as U.A.W. Targets Tesla and Others

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      President Biden’s support for autoworkers helped them make big wage gains, and labor organizers are looking to bring about similar gains elsewhere as carmakers transition to electric vehicles.The United Automobile Workers’ big wins with Detroit’s Big Three automakers could also prove to be a significant political victory for President Biden, who openly sided with striking workers to pressure the companies, General Motors, Ford and Stellantis, to produce generous concessions.But the U.A.W.’s turn now toward nonunionized automakers like Tesla, Hyundai, BMW and Mercedes will test whether Mr. Biden’s support, as well as measures that he signed into law, will produce the expansion of organized labor that he has long promised.For unionized autoworkers, many of them in the swing state of Michigan, the tentative contracts, which are awaiting rank-and-file ratification, would bring substantial wage gains, “another piece of good economic news,” Mr. Biden said on Monday. The tentative contracts would lift the top U.A.W. wage to more than $40 per hour over four and a half years, from $32 an hour. Stellantis, maker of Chryslers, Jeeps and Ram trucks, agreed to reopen its assembly plant in Belvidere, Ill., near the border of Wisconsin, another crucial swing state.“The impact of Biden’s public support can’t be overstated,” said Steve Smith, a spokesman for the umbrella A.F.L.-C.I.O., which includes the autoworkers’ union. “There’s a lot of upside here for Biden. The contracts set a new standard for the industry that clearly show the benefit of collective bargaining.”Beyond that, G.M. agreed to bring its electric vehicle battery joint venture, Ultium, under the national contract, a boon for Ultium workers but also a pressure point for unions as they seek to organize battery plants sprouting up around the country. Such plants are using generous subsidies from Mr. Biden’s signature legislative achievements — especially the climate change provisions of the Inflation Reduction Act — as the administration pushes to speed the country’s transition to electric vehicles.“This historic contract is a testament to the power of unions and collective bargaining to build strong middle-class jobs while helping our most iconic American companies thrive,” Mr. Biden said Monday evening.Jason Walsh, the executive director of the BlueGreen Alliance, which has brought together labor and environmental groups to marshal support for the clean energy transition, said the contracts, if ratified by U.A.W. workers, would be a watershed moment for the economy — and possibly the planet.“The legislative intent behind the industrial policy in the Inflation Reduction Act was an implicit deal: We as a nation are going to invest in the sectors of the economy that are important to the country and the planet in the long run, but in return we want the companies that receive those benefits to maximize returns to workers, communities and the environment,” Mr. Walsh said. To that end, the contract settlement is “huge,” he added. “It highlights the lie peddled by Donald Trump and at times the Big Three that the E.V. transition means lower-quality jobs in a nonunion work force.”The U.A.W. actions took on strikingly political meaning. In May, the autoworkers’ union opted to withhold an endorsement of Mr. Biden’s re-election, openly expressing “our concerns with the electric vehicle transition” that the president was pushing through legislation and regulation.Last month, Mr. Biden became the first sitting U.S. president to join a picket line. Senator Tim Scott of South Carolina, a candidate for the Republican presidential nomination, castigated striking workers, saying “they want more money working fewer hours. They want more benefits working fewer days.”Mr. Trump, the front-runner for the Republican presidential nomination, visited a nonunion parts plant in Michigan to rail against electric vehicles and to demand that Shawn Fain, the new and aggressive U.A.W. president, endorse him for another term in the White House.Mr. Fain said he would never do that, and supporters of the president pointed to provisions in federal laws championed by Mr. Biden that may have helped secure the deals. Subsidies for electric vehicle production will go only to domestic manufacturing plants, meaning Detroit management could not credibly threaten to move new auto plants overseas in search of cheaper labor.But union officials did not say on Monday what their intentions were for a presidential endorsement. Mr. Fain did make clear over the weekend that he was not resting on his laurels with the gains achieved with its escalating wave of strikes against the Big Three. The union plans to target Tesla, the nonunion automaker that dominates the domestic electric vehicle market, as well as foreign automakers with factories in the Southeast, where unions have struggled to gain a foothold. Some of the biggest new plants are under construction in Georgia, a critical swing state for 2024, including a Hyundai electric vehicle plant that will be the state’s biggest economic development project ever.Organizers will be able to lean on provisions of the three big laws that Mr. Biden signed — a $1 trillion infrastructure bill, a $280 billion measure to rekindle a domestic semiconductor industry and the Inflation Reduction Act, which included $370 billion for clean energy to combat climate change — to push their case.Tucked into all of those laws were measures to give unions the power to effectively tell employers that accept rich federal tax incentives this: You must pay union-scale wages and use union apprenticeship and training programs, so you might as well hire union workers.How electric vehicle and battery makers respond to the U.A.W.’s next push will go a long way toward determining whether Mr. Biden can make good on his promise that his effort to curtail climate change and wean the nation off fossil fuels will indeed produce “good union jobs.” More