United States Economy

Subterms

    More stories

    • 125 Shares119 Views

      in Elections

      Nikki Haley Aims to Turn Her Debate Moment Into Momentum

      by

      The former South Carolina governor — the only woman in the Republican field — stood out for her responses on abortion, foreign policy and Donald Trump’s indictments.Less than 30 minutes into the first Republican presidential debate, the men onstage were bickering — just as Nikki Haley predicted.“I think this is exactly why Margaret Thatcher said, ‘If you want something said, ask a man,’” quipped Ms. Haley, the former governor of South Carolina and former ambassador to the United Nations. “If you want something done, ask a woman.”The response was the beginning of a standout performance for Ms. Haley, who already cut a distinct figure: the lone woman in the Republican field, standing in a white and light blue suit-style dress among a stretch of men in nearly identical red ties.Her Thatcher line — a favorite on the stump and the inspiration for the title of one of her books — captured the balance she has sought to strike between testing her party’s attitudes and not leaning too far into her gender. But Ms. Haley, who has struggled to gain traction in primary polls dominated by Donald J. Trump, did not always stay above the fray.She took swings at her rivals and offered a general-election vision for her party that seemed to intrigue some voters and pundits who were impressed with her abilities to speak authoritatively, skillfully break with the pack on some issues and give and take punches.The showing could inject some much-needed momentum into her campaign. Ms. Haley spent the next morning sitting through a blitz of interviews before she was expected in Chicago for a fund-raiser. At the very least, her allies said, the debate gave a glimpse into why she should not be discounted.“Nobody thought Nikki Haley could get elected to anything in South Carolina,” said Katon Dawson, a Haley surrogate and the former chairman of the South Carolina Republican Party. And yet, he added, “she has never lost a race.”Here are four areas where Ms. Haley was able to land a blow and distinguish herself from the field on Wednesday night in Milwaukee.“Do not make women feel like they have to decide on this issue.”She went head-to-head with former Vice President Mike Pence on abortion, giving an impassioned defense of women and urging her rivals to stop “demonizing” the issue. As governor of South Carolina, she signed a 20-week ban on the procedure, but on Wednesday, just as she has before, she called for “consensus” on the issue.“Can’t we all agree that we should ban late-term abortions? Can’t we all agree that we should encourage adoptions? Can’t we all agree that doctors and nurses who don’t believe in abortion shouldn’t have to perform them?” she said, before continuing: “Can’t we all agree that contraception should be available? And can’t we all agree that we are not going to put a woman in jail or give her the death penalty if she gets an abortion?”Ms. Haley’s attempts to lead her party on a thorny issue haven’t always resonated — partly because, her critics say, she has dodged most questions on the details of her positions. On the stage Wednesday, she broached familiar personal themes, saying she was “unapologetically pro-life” because her husband was adopted and she had trouble conceiving her two children.But when Mr. Pence sought to establish himself as the staunchest opponent of abortion, telling Ms. Haley that “consensus is the opposite of leadership,” Ms. Haley fired back that he was being dishonest about what was politically possible when it comes to Congress passing a federal ban on abortion.“When you’re talking about a federal ban, be honest with the American people,” she said, arguing that the 60-vote filibuster threshold in the Senate meant that no Democratic or Republican president would be able to set abortion policy.The exchange underscored the deep and emotional divide that has emerged among Republicans since the Supreme Court overturned Roe v. Wade last year. Though members of the party largely support that ruling, a fierce electoral backlash to more stringent state-level restrictions has made abortion a politically risky issue for Republicans.“This guy is a murderer, and you are choosing a murderer over a pro-American country.”Some of Ms. Haley’s fiercest clashes were with Vivek Ramaswamy, a biotech entrepreneur and political newcomer, over her support for Ukraine in its effort to fight Russia’s invasion, an issue that has starkly divided the field and the party more broadly. She suggested that Mr. Ramaswamy wanted to “hand Ukraine to Russia,” and that President Vladimir V. Putin of Russia had killed Yevgeny V. Prigozhin, the leader of the Wagner mercenary group responsible for a short-lived mutiny.“This guy is a murderer, and you are choosing a murderer over a pro-American country,” Ms. Haley said to Mr. Ramaswamy, referring to Mr. Putin, whom she also called “thug.” “You don’t do that to friends. What you do instead is you have the backs of your friends.”Later, she took one of the most memorable shots of the night when she told Mr. Ramaswamy: “You will make America less safe. You have no foreign policy experience and it shows.” This drew loud applause from the audience.“They all voted to raise the debt, and Donald Trump added $8 trillion to our debt.”On the campaign trail, Ms. Haley often tells crowds that it is time to put an accountant like herself in the White House. On Wednesday, as her rivals blamed President Biden and Democrats for economic policies that they said had driven up the cost of food and gasoline, Ms. Haley criticized both Republicans and Democrats for increasing the nation’s spending and debt.“The truth is that Biden didn’t do this to us,” she said. “Our Republicans did this to us when they passed that $2.2 trillion Covid stimulus bill.”Mr. Biden shared a clip of Ms. Haley in which she said her rivals — Mr. Trump, Mr. Pence, Mr. DeSantis and Senator Tim Scott of South Carolina — had all fueled the national debt increase. “What she said,” the president said on X, formerly known as Twitter.Economists largely agree that Mr. Biden’s $1.9 trillion pandemic rescue plan in 2021 contributed to the highest inflation rate in decades. But they spread the blame to stimulus passed under Mr. Trump and monetary stimulus by the Federal Reserve, along with disruptions to supply chains caused by Covid-19.The issues of debt and spending, along with calls for greater transparency in government, were part of Ms. Haley’s stunning come-from-behind-victory in 2010 when she was elected governor. That year, Ms. Haley, the daughter of Indian immigrants, rode the Tea Party wave to become the first woman and first person of color to lead South Carolina — as well as the youngest governor of any state at the time.“We have to face the fact that Trump is the most disliked politician in America.”Ms. Haley elicited some boos from the arena audience when she called for “a new generational conservative leader,” pointing out “that-three quarters of Americans don’t want a rematch between Mr. Trump and Mr. Biden.”“We have to face the fact that Trump is the most disliked politician in America,” she said. “We can’t win an election that way.”In an interview with the Fox News host Sean Hannity after the debate, Ms. Haley appealed to Republican primary voters to back a candidate other than Mr. Trump, whom she cast as an unsure bet against Mr. Biden.She said that she believed the criminal indictments against Mr. Trump were politically motivated, but that the cases could nevertheless take him off the campaign trail.“I served with him, I was proud to serve with him, I agree with him on most issues and he’s my friend,” Ms. Haley said of the former president. “But the reality is we cannot afford Joe Biden.” More

    • 125 Shares199 Views

      in Elections

      With National Monument Designation, Biden Tries to Balance Electoral Realities

      by

      The president has highlighted his climate actions as a way to spur domestic energy production and create blue-collar jobs, while nodding to environmental activists and tribal leaders.The president designated nearly a million acres of land in Red Butte, Ariz., as a national monument.Kenny Holston/The New York TimesAfter spending most of his appearance near the Grand Canyon describing how his fifth national monument designation would preserve sagebrush, bighorn sheep and 450 kinds of birds, President Biden said on Tuesday that protecting the land long held sacred by Native American leaders was not just a matter of the environment.“By creating this monument, we’re setting aside new spaces for families to bike, hunt, fish and camp, growing the tourism economy,” Mr. Biden said as he declared nearly a million acres near the Grand Canyon as a national monument, with the 300-million-year-old “majestic red cliffs” serving as his backdrop.“Preserving these lands is good not only for Arizona, but for the planet,” he said. “It’s good for the economy.”Mr. Biden has often framed his climate investments as a means to spur domestic energy production, one that would create thousands of jobs for blue-collar workers. But when he traveled to Arizona to announce a permanent ban on uranium mining in the area, he also nodded to other crucial constituencies: environmental activists and tribal leaders who have pressed the White House to make good on its ambitious campaign promises to protect the environment and ancestral homelands.The White House has presented Mr. Biden’s sales pitch for legislation aimed at cutting planet-warming greenhouse gas emissions, the Inflation Reduction Act, as a job-growth machine to appeal to the middle class. But the administration knows that those who care about protecting the environment and preserving lands stripped from tribal nations are crucial voters, particularly in the battleground state of Arizona.The balancing act was reflected during Mr. Biden’s visit to the mountainous range of Red Butte near the Grand Canyon, where he spoke of job creation while also acknowledging environmental activists and tribal leaders.Indigenous people, Mr. Biden said, “fought for decades to be able to return to these lands to protect these lands from mining and development to clear them of contamination to preserve their shared legacy.”The Biden administration has argued that the Grand Canyon region contains just about 1.3 percent of the country’s uranium reserves.Kenny Holston/The New York TimesThe White House hopes Mr. Biden’s message is received by not just Native Americans but also young and climate-conscious voters, many of whom have yet to be fired up by his economy-first message.About 71 percent of Americans say they have heard “little” or “nothing at all” about the Inflation Reduction Act one year after it was signed, according to a Washington Post-University of Maryland poll. And most Americans — 57 percent — disapprove of Mr. Biden’s handling of climate change, according to the poll. Recent polls also show that voter sentiment on the economy continues to drive the president’s negative approval ratings.Mr. Biden has been inconsistent in his efforts to protect federal lands and waters. This year he approved the Willow project, a large oil-drilling development in the pristine Arctic wilderness. The administration also approved more oil and gas permits in its first two years than President Donald J. Trump did in his, and agreed to a series of compromises in the Inflation Reduction Act, Mr. Biden’s signature climate law, to allow offshore oil and gas leasing in the Gulf of Mexico and Alaska’s Cook Inlet.“It’s a pick-your-battle environment,” said Joel Clement, a former policy director at the Interior Department.Mr. Clement, who is now a senior program officer at the Lemelson Foundation, a philanthropic group funding work on climate change, said he believed the Biden administration was intent on protecting Indigenous lands and culture, and also on blocking as much fossil fuel production as it could.But, he said, “The calculus revolves around how much damage they can weather from the right on each of these things.”The Biden administration needs to amp up its climate change messaging as campaign season heats up, said Anthony Leiserowitz, the director of the Yale Program on Climate Change Communication, which has conducted surveys on Americans’ climate opinions since 2007.While the message about jobs and the economy might be a winning strategy in a general election, Mr. Leiserowitz said Mr. Biden’s base of climate-focused voters wanted to see the president use the bully pulpit to talk more about replacing fossil fuels, the burning of which is dangerously heating the planet.“They have more teachable moments to talk about climate change with the American people than any other president in history because we are getting hit every day by another two-by-four of climate extremes on steroids,” Mr. Leiserowitz said.Mr. Biden leaned into that message on Tuesday, describing his efforts to combat the effects of climate change, including investing $720 million for Native American communities to ease the impact of droughts and rising sea levels. Standing before an Arizona delegation as well as tribal leaders donning traditional attire, Mr. Biden framed the Inflation Reduction Act as the biggest investment in climate conservation and environmental justice on record.But his announcement also highlighted the risks Mr. Biden faces as he seeks to conserve lands while also promoting the expansion of clean energy. Uranium is a fuel most widely used for nuclear plants, a key source of energy that does not produce carbon dioxide emissions.As countries work to curb planet-warming greenhouse gasses, competition for uranium is expected to increase, according to experts. The United States imports the majority of its uranium, from Kazakhstan, Canada, Australia and Russia.Paul Goranson, the chief executive of enCore Energy, which has mining claims in the Grand Canyon area, said the uranium found there is of a higher grade than in other parts of the United States. Cutting off that supply, he said, will keep the United States reliant on imports, which could have an impact on national security and hurt the Biden administration’s ability to develop zero-emissions energy sources to fight climate change.“It seems the timing is a bit inconsistent with the president’s objectives for clean energy,” Mr. Goranson said. “It doesn’t seem to be aligning with his stated clean energy targets.”The Biden administration has argued that the Grand Canyon region contains just about 1.3 percent of the country’s uranium reserves. Environmental groups also noted that because the area was under a 20-year moratorium imposed during the Obama administration, no mining would have occurred for at least a decade anyway.Republicans blasted Mr. Biden’s decision this week. Senator John Barrasso of Wyoming, the top Republican on the Senate Energy and Natural Resources Committee and a supporter of nuclear energy, accused the president of “supporting our enemies” by blocking uranium production. American companies currently pay around $1 billion a year to Russia’s state-owned nuclear agency to buy uranium.The White House’s balancing act of framing its agenda as a boon to domestic investment and job growth, as well as a way to combat climate change and advance environmental justice, will continue throughout the re-election campaign, according to senior White House officials. After Mr. Biden was endorsed by the four largest environmental groups in the United States in June, the president celebrated days later at a rally for union workers.“The investment isn’t only going to help us save the planet, it’s going to create jobs — lots of jobs, tens of thousands of good-paying union jobs,” Mr. Biden reminded A.F.L.-C.I.O. members at the rally in Philadelphia.That strategy was evident on Tuesday. As Mr. Biden talked about the importance of protecting the country’s natural wonders, Vice President Kamala Harris joined Labor Department officials in Philadelphia to speak to construction workers about efforts to raise their wages.And after the event at the Grand Canyon, Mr. Biden traveled to Albuquerque, where he will describe how his signature climate and clean energy bill also creates manufacturing jobs in the clean energy sector.A group gathered to see President Biden.Kenny Holston/The New York TimesJohn Leshy, a public lands expert who served in the Interior Department during the Clinton and the Carter administrations, said trade-offs between developing renewable energy to fight climate change and conserving and protecting public lands will only increase in the years to come.“We’ve got a catastrophe in the offing if we don’t move rapidly to decarbonize,” Mr. Leshy said. “I don’t think that means opening up the Grand Canyon to uranium mining everywhere, but in some situations it does mean we’re going to have to grit our teeth” to allow for more minerals development, he said.For Carletta Tilousi, a member of the Havasupai Tribe, Mr. Biden’s monument designation means that her ancestors “are finally going to be feeling rested.”“A lot of these areas are in places where there were once gathering sites of tribal people and many years ago, hundred years ago, where our ancestors once roamed and we still roam today here,” she said. “But I believe those areas are very important to our existence.” More

    • 125 Shares139 Views

      in Elections

      Biden’s Approval Rating Remains Low Despite Flurry of Good News

      by

      The president is experiencing a flurry of good news on the economy, crime, immigration and other areas, but voters so far have not given the president much credit.Inflation at long last is down. So are gas prices and Covid deaths and violent crime and illegal immigration. Unemployment remains near record lows. The economy, meanwhile, is growing, wages are climbing, consumer confidence is rising and the stock market is surging.For President Biden, many of the numbers that define an administration are finally heading in the right direction. Except one: his approval rating.Despite the flurry of good news on economic and other domestic fronts in recent weeks and months, Mr. Biden’s poll numbers remain low. Just 39 percent approved of his performance in the latest survey by The New York Times and Siena College, far from the level that would typically give strategists confidence heading into a re-election campaign.An average of multiple recent polls by the website FiveThirtyEight puts Mr. Biden’s approval at 41.2 percent, lower than every president at this stage of their term in the last three-quarters of a century other than Jimmy Carter, who went on to lose his bid for a second term. The Times-Siena survey found Mr. Biden deadlocked at 43 percent to 43 percent with the Republican front-runner, former President Donald J. Trump, who has been indicted three times on criminal charges.The question for Democrats is whether Mr. Biden’s public standing is a lagging indicator that will grow in the next several months as improving conditions in the country become more evident to voters, much as Presidents Ronald Reagan, Bill Clinton and Barack Obama were transformed from midterm losers to re-election winners. Or as some Democrats fear, is Mr. Biden’s anemic support more about Mr. Biden himself in a highly polarized moment that will make securing a second term next year vastly more challenging?“Even though Biden’s numbers aren’t great, their trendlines, albeit halting, are positive, and we’ll see if they have a soft landing,” said Douglas B. Sosnik, who was Mr. Clinton’s White House counselor and analyzes today’s political trends in regular papers. “I feel like Biden has plenty of time to get the arrows in the right direction the way that Obama did and Clinton did and Reagan did.”Biden aides express equanimity about the sluggish poll numbers, noting that Mr. Biden won in 2020 and that Democrats avoided a predicted “red wave” in 2022 despite his similarly low approval rating then.But they are taking satisfaction for the moment that so many other indicators have turned positive. Given where this presidency began, in the throes of a pandemic and resulting economic crisis, it was hardly a given that a year out from the next election Mr. Biden would preside over a healthy economy and a healthy citizenry.The president’s advisers argue that the positive trendlines of late were a direct result of Mr. Biden’s policies, including widespread Covid-19 vaccination, abundant pandemic relief spending, a mammoth new program to build or repair roads, bridges and other public works, record investments in clean energy and federal support to jump-start the semiconductor industry.Biden aides express equanimity about the sluggish poll numbers, taking satisfaction for the moment that so many other indicators have turned positive.Doug Mills/The New York Times“What you’re seeing is the president put in two hard years of work of putting these policies in place, and they’re starting to deliver the results we thought they would,” said Ron Klain, the president’s first White House chief of staff, who managed many of those efforts.“The good economic news is very important. It creates a base for him to run on,” he added. “I don’t think you’re ever going to persuade Republicans, but I think independents are coming around that the economy is doing better, and I think that’ll be a self-reinforcing cycle.”Republicans will do all they can to foster the opposite impression, though, portraying the nation as a dystopian hellscape awash in crime, uncontrolled immigration, rising debt and economic misery. “Our country is going to hell,” Mr. Trump told supporters in April.Mr. Biden has engaged in the battle of perceptions lately by branding the disparate elements of his agenda “Bidenomics” and embarking on a barnstorming tour of the country claiming credit for avoiding the recession experts had long predicted. His team has proved particularly disciplined in reinforcing that message with the kind of relentless repetition traditionally necessary to cut through the noise of public life.Change in attitudes has been noticeable but incremental. Just 23 percent of Americans think the country is on the right track in the latest Times/Siena poll, but that is up from 13 percent a year ago. Similarly, just 20 percent consider the economy excellent or good, but that is up from 10 percent a year ago, while the share of respondents who called it poor has fallen from 58 percent last summer to 49 percent today.It can take a while for the public perspective to catch up with improving conditions. A recession during the presidency of George H.W. Bush officially ended in 1991, long before the 1992 election, but it did not feel that way to voters who turned instead to Mr. Clinton and his “it’s-the-economy-stupid” campaign.The Great Recession sparked by the 2008 financial crash formally ended in June 2009, but Mr. Obama’s Democrats were still swamped in midterm elections a year later. By the time he came up for re-election in 2012, public confidence in the economy had improved and he secured a second term.Moreover, the lingering effects of recent hardships are not so easily erased. Inflation has fallen from a peak of 9 percent to 3 percent, a remarkable drop, but even though prices have stabilized, they have stabilized at a level still significantly higher than when Mr. Biden took office. Unemployment is at 3.5 percent, matching a half-century low and meaning that most people who want a job can find one, but not all of these positions have high pay with benefits. Wages have begun rising faster than inflation — but only just begun.And for all that, conditions still feel in flux to many people. While illegal border crossings have dropped significantly since last year, they surged again in July. The S&P 500 stock market index has swelled by 17 percent this year, but slipped in recent days after the Fitch Ratings agency downgraded the U.S. government’s credit. Likewise, gas prices remain below their peak but have inched up lately.What may prove more vexing to Mr. Biden and his strategists is the possibility that his political prospects may be decoupled from such issues. In past generations, Americans were more reactive to events in evaluating their presidents, while in recent years they have been more locked into their partisan corner. The days when a president could garner the support of 60 percent or more of the public feel long gone.President George W. Bush’s approval rating in Gallup surveys fell below 50 percent two months after his second inauguration and never surpassed it again for his entire second term. Mr. Obama was below 50 percent for the vast bulk of his second term until his final months in office, and Mr. Trump never enjoyed the support of a majority of Americans for a single day of his presidency. Mr. Biden fell below 50 percent in his first summer in office and has yet to recover.“Presidents today are less and less able to rely on even begrudging approval from partisans on the other side of the aisle,” said Kristen Soltis Anderson, a Republican pollster. “This places a lower and lower ceiling on presidential job approval, because without the ability to garner any approval from the other side, you are stuck relying solely on your own party’s voters to boost you.”For decades, the American National Election Studies, a collaboration of Stanford University and the University of Michigan, has tracked how Americans felt about presidential candidates, asking them to rate them on a scale of zero to 100, with zero meaning very cool and 100 meaning very warmly.In 1980, Ronald Reagan and Jimmy Carter both received some measure of support from voters who were not in their party.United Press InternationalIt used to be that Americans had at least some respect or admiration for a candidate of the other party. In 1980, Democratic voters gave Mr. Reagan an average of 46.3 while Republicans gave Mr. Carter an average of 40.6. In 2000, Democratic voters gave the younger Mr. Bush an average of 44.8 while Republicans gave the Democrat Al Gore an average of 40.8.But by recent years, views had hardened, becoming far more pronounced and partisan. In 2016, Democratic voters gave Mr. Trump just 14.5 while Republicans gave Hillary Clinton a 16.6. In 2020, Democrats gave Mr. Trump a 9.6 while Republicans gave Mr. Biden a 20.2.“The reality is that presidents lately are not coming into office with even the slightest bit of good will or benefit of the doubt from the other side,” Ms. Anderson said, “and that places a very hard cap on how much approval they can ever hope to garner outside their own team.”So as Mr. Biden and his team look ahead to 2024, they hope to make the most of an improving economy to bring home disaffected Democrats and independents, but they cannot count on a newfound swell of popularity to carry him to victory. Instead, they anticipate a grinding campaign in which they compete for a relatively small share of the electorate while trying to maximize turnout among their own voters.“Republicans are just hard core,” Mr. Klain said. “They’re never going to approve of Joe Biden’s job, no matter what he’s doing. The vote is the vote. What matters is who’s going to win on Election Day.” More

    • 113 Shares99 Views

      in Elections

      Hard Questions if Biden’s Approval Doesn’t Follow Economy’s Rise

      by

      This is about the time when many presidents see their standing turn around, including Ronald Reagan and Bill Clinton.President Biden promoting domestic chip manufacturing.Adriana Zehbrauskas for The New York TimesDoesn’t it feel as if everything’s breaking President Biden’s way lately?His chief rival — whom Mr. Biden already beat in 2020 and whom Democrats, in a sense, beat again in the midterms — is facing criminal indictments and yet currently finds himself cruising to the nomination anyway.The economy — which teetered on the edge of recession for two years with inflation rising and real wages declining — seems as if it might be on track for a soft landing, with inflation falling, real wages rising and the stock market recovering.The backlash against “woke” — a topic Republicans seemed most keen on exploiting in the Biden era — appears to have receded significantly, whether because Donald J. Trump has taken up much of the oxygen; conservatives have overreached; or progressives have reined in their excesses and fallen back to defense after conservatives went on offense.It’s probably too soon to expect these recent developments to lift Mr. Biden’s approval ratings, which remain mired in the low 40s. But if these trends persist, many of the explanations for Mr. Biden’s low approval will quickly become less credible. If his numbers don’t start to move over the next several months — with the wind seemingly at his back — it will quickly begin to raise more serious questions about his standing heading into the 2024 election.To this point in his presidency, it has been fairly easy to attribute his low ratings to economic conditions. Yes, unemployment was low and growth remained steady. But inflation surged, real incomes dropped, stocks fell into a bear market, a recession seemed imminent, and voters could see the signs of a struggling economy everywhere, including supply chain shortages and onerous interest rates.It’s fair to question whether economic conditions have actually been as bad as voters say, but it’s also fair to acknowledge these kinds of conditions can yield a pessimistic electorate. Two bouts of inflation that are reminiscent of today’s post-pandemic economy — the postwar economies of 1920 and 1946 — were catastrophic for the party in power, even as unemployment remained low by the standards of the era.Historically, it can feel as if almost every major political upheaval comes with inflation, whether it’s the Great Unrest in Britain, the Red Summer in the U.S. or even the hyperinflation of Weimar Germany. If high bread prices can be argued to have helped cause the French Revolution, it’s easy to accept that 9 percent inflation (at its peak in June 2022) could hurt Mr. Biden’s approval ratings by five or 10 percentage points.But if inflation has been what’s holding Mr. Biden back, it’s hard to say it should hold him back for too much longer. Annual inflation fell to 3 percent last month, and real incomes have finally started to rise. The stock market — one of the most visible and consequential measures of the economy for millions of Americans — has increased around 15 percent over the last six months. The University of Michigan consumer sentiment index surged 13 percent in July, reaching the highest level since September 2021 — the first full month Mr. Biden’s approval ratings were beneath 50 percent.There’s another factor that ought to help Mr. Biden’s approval rating: the onset of a new phase of the Republican primary campaign, including debates. As the Republican candidates become more prominent in American life, voters may start judging Mr. Biden against the alternatives, not just in isolation. Some of the Democratic-leaning voters who currently disapprove of Mr. Biden might begin to look at the Biden presidency in a different light.Perhaps in part for these reasons, this is about the time when many presidents see their standing turn around. Ronald Reagan and Bill Clinton’s approval ratings were clearly on the upswing at this stage of the election cycle — though both were still beneath 50 percent — as voters began to see and feel an improving economy.We will see in the months ahead whether Mr. Biden’s ratings begin to increase. I wouldn’t expect it to happen quickly: Mr. Reagan and Mr. Clinton’s ratings increased by less than a point per month between roughly this time and their re-election. Barack Obama’s ratings increased at a similar, if slightly slower, pace from his post-debt-ceiling-crisis nadir a little later in the year.But even if it is not quick, I would expect Mr. Biden’s ratings to begin to increase if these conditions remain in place. Today’s era may be polarized, but there are plenty of persuadable and even Democratic-leaning voters — who disapprove of his performance — available to return to his side.If the economy keeps improving and yet his ratings remain stagnant in the months ahead, it will gradually begin to raise hard questions about the real source of his weakness — including the possibility that his age, by feeding the perception of a feeble president, prevents voters from seeing him as effective, whatever his actual record. More

    • 75 Shares189 Views

      in Elections

      Can Biden Change the Economic Narrative?

      by

      Back in the 1970s, Arthur Okun, an economist who had been a policy adviser to Lyndon Johnson, suggested a quick-and-dirty way to assess the nation’s economic condition: the “misery index,” the sum of inflation and unemployment. It was and is a crude, easily criticized measure. The measurable economic harm from unemployment, for instance, is much higher than that from inflation. Yet the index has historically done a quite good job of predicting overall economic sentiment.So it seems worth noting that the misery index — which soared along with inflation during 2021 and the first half of 2022 — has plunged over the past year. It is now all the way back to its level when President Biden took office.This remarkable turnaround raises several questions. First, is it real? (Yes.) Second, will ordinary Americans notice? (They already have.) Third, will they give Biden credit? (That’s a lot less clear.)The plunge in the misery index reflects both what didn’t happen and what did. What didn’t happen, despite a drumbeat of dire warnings in the news media, was a recession. The U.S. economy added four million jobs over the past year, and the unemployment rate has remained near a 50-year low.What did happen was a rapid decline in inflation. But is this decline sustainable? You may have seen news reports pointing out that “core” inflation, which excludes volatile food and energy prices, has been “sticky,” suggesting that improvement on the inflation front will be only a temporary phenomenon.But just about every economist paying attention to the data knows that the traditional measure of core inflation has gone rotten, because it’s being driven largely by the delayed effects of a surge in rents that ended in mid-2022. This surge, by the way, was probably caused by the rise in remote work triggered by the Covid-19 pandemic rather than by any Biden administration policy.Alternative measures of core inflation that exclude shelter by and large show a clear pattern of disinflation; inflation is still running higher than it was before the pandemic, but it has come down a lot. If you really work at it, it’s still possible to be pessimistic about the inflation outlook, but it’s getting harder and harder. The good news about inflation, and about the economy as a whole, does look real.But are people noticing this improvement? Traditional measures of economic sentiment have become problematic in recent years: Ask people how the economy is doing, and their response is strongly affected both by partisanship and, I believe, by the narratives conveyed by the news media. That is, what people say about the economy is, all too often, what they think they’re supposed to say.But if you ask Americans more specific questions, such as whether now is a good time to find a quality job, they typically say yes. At the same time, their expectations about future inflation have declined substantially.And if you look at a novel indicator — what information people are searching for on the internet — you’ll find that searches for both “inflation” and “recession” soared in 2021-22 along with the misery index but have plunged over the past year.Finally, as always, it’s important to look at what people do as well as what they say. Strong consumer spending, record levels of air travel and many other indicators suggest that Americans are feeling pretty good about their economic circumstances.But will Biden get credit? Polls suggest that voters are still giving him very poor marks for his handling of the economy, despite the decline in the misery index.Some analysts have argued that this jaundiced view reflects a failure of wages to keep up with inflation. But this was true for most of the Reagan years too, and in any case real wages have been rising lately.So will voters’ views of the Biden economy eventually reflect the good news? Or did the inflation shock of 2021-22 establish a narrative of Biden as a poor economic manager that has become too deeply entrenched — both in the public consciousness and in the news media — to be dislodged even as the economy rapidly improves?Biden himself is trying hard to change that narrative, by pointing both to the improving data and to an impressive surge in manufacturing investment. But I have no idea whether he’ll succeed. One encouraging precedent for Biden: Ronald Reagan still had fairly low approval in mid-1983, then went on to win a landslide in 1984 on the strength of the economy’s recovery. Biden might yet turn the narrative on his economic policy around.And even if he can’t, it might not matter. High inflation was supposed to guarantee a huge red wave in the midterm elections. Instead, Democrats did surprisingly well, probably because abortion and other social issues played a bigger role than economics. Those social issues aren’t going away, while high inflation is. Arguably, Biden doesn’t need to convince Americans that his economic policies have been highly successful; he just needs to make the case that the economy isn’t doing too badly.And it isn’t. In fact, by most measures the economy is doing quite well.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, Twitter (@NYTopinion) and Instagram. More

    • 100 Shares129 Views

      in Elections

      Biden Is Trying to Co-opt Trump’s Biggest Strength

      by

      Joe Biden just offered a window into what a Biden-Trump rematch might look like. Well, part of it, at least.The wildness of Donald Trump’s political style often obscures — at least to his critics — the more banal dimensions of his appeal. The strongest of Trump’s arguments, and the one Biden has the most to fear from in 2024, is economic. In 2016, Trump ran as a businessman savant who would wield his mastery of the deal in service of the American people. “My whole life I’ve been greedy, greedy, greedy,” Trump said. “I’ve grabbed all the money I could get. I’m so greedy. But now I want to be greedy for the United States.”Trump said that elites had sold you out. They traded your job to China. They let your bridges and roads and buildings crumble. They respected the work they did — work that happens behind a computer screen, work that needs fancy degrees, work that happens in offices rather than factories and cities rather than towns — and dismissed the work you did. They got rich and you got nothing. Exit polls found that Trump won large majorities among those who thought the economy was “fair” or “poor.”Trump did not, during his presidency, turn that critique into an agenda. There were islands of action — trade policy foremost among them — but the order of the day was incoherence. Infrastructure weeks came and went. Tax cuts were tilted toward the rich. There was no strategy to restore America’s manufacturing prowess or rebuild bargaining power for workers without college degrees.But Trump had the good fortune to take office during an economic boom. And he kept that boom going. He worked with congressional Republicans to tax less and spend more, budget deficits be damned. He appointed Jay Powell to the Federal Reserve, and Powell kept money cheap and the labor market hot. Unemployment, in February 2020, was 3.5 percent. Wages were rising and inflation was low.Then Covid hit, and Trump worked with Speaker Nancy Pelosi to flood the economy with trillions of dollars in support payments. Joblessness spiked, but workers overall didn’t suffer. This is Trump’s deepest well of strength in a 2024 rematch. Only about a third of voters approve of the job Biden has done on the economy. Polls show Trump is the more trusted economic manager, by far.On Wednesday, in Chicago, Biden previewed the counterargument he’ll make in a much-hyped speech defining “Bidenomics.” Biden’s case is this: What Trump only promised, I delivered.Biden set his economic policies in contrast to “40 years of trickle-down.” Trickle-down economics usually describes the theory that tax cuts at the top will lead to prosperity at the bottom. Biden is using it to describe a more expansive economic order — what sometimes gets called “neoliberalism.” Trickle-down, in his telling, was the philosophy that “it didn’t matter where you made things.” It “meant slashing public investment” and looking the other way as “three-quarters of U.S. industries grew more concentrated.” Forty years, as alert readers will note, encompasses not just the administrations of Donald Trump and George W. Bush and George H.W. Bush and Ronald Reagan, but Bill Clinton and, yes, Barack Obama.This is a point worth dwelling on. The Biden administration is thickly populated with veterans of the Obama and Clinton White Houses. But it doesn’t see itself in comfortable continuity with those legacies. It sees itself, in key ways, as a break with them.Back in May, Jake Sullivan, Biden’s national security adviser (and a key aide, before that, to both Hillary Clinton and Barack Obama), made this explicit during a speech to the Brookings Institution. Sullivan slammed the belief that “the type of growth did not matter.” That had led, he said, to administrations that let Wall Street thrive while “essential sectors, like semiconductors and infrastructure, atrophied.” He dismissed the “assumption at the heart of all of this policy: that markets always allocate capital productively and efficiently.”And he tendered a modest mea culpa for his own party. “Frankly, our domestic economic policies also failed to fully account for the consequences of our international economic policies,” he said. In letting globalization and automation hollow out domestic manufacturing, Democrats had been part of a Washington consensus that “had frayed the socioeconomic foundations on which any strong and resilient democracy rests.”Biden’s speech in Chicago tried to show he was a Democrat who had learned these lessons. First, there was his emphasis on place. “I believe every American willing to work hard should be able to say where they grew up and stay where they grew up,” he said. “That’s Bidenomics.” Later, he said it again. “I believe that every American willing to work hard should be able to get a job no matter where they are — in the heartland, in small towns, in every part of this country — to raise their kids on a good paycheck and keep their roots where they grew up.”I talked to Jared Bernstein, the chairman of Biden’s Council of Economic Advisers, about the thinking here. “One of the pretty bereft assumptions of traditional economics is that you don’t need to worry about place because, as long as there are good jobs somewhere, people will go there and get them,” Bernstein told me. “It doesn’t really work that way.” One reason it doesn’t work that way is housing costs. “The idea that you can relocate from rural America, where housing is cheap, to expensive-housing America, even with the pay differentials, is a bit of a fantasy,” he said.Biden’s answer is built around the investments being made by the Inflation Reduction Act and the bipartisan infrastructure bill. You don’t install wind and solar farms in Manhattan and San Francisco. You don’t even necessarily do it in blue states, much to the chagrin of Democratic governors. Biden pointed to Weirton, W.Va., “where a steel mill closed in the beginning of the century” and, because of him, an iron-air battery plant is “being built on the same exact site, bringing back 750 good-paying jobs, bringing back a sense of pride and hope for the future.” The Rocky Mountain Institute, a clean energy research firm, estimates that Biden’s red states will get $623 billion in clean energy investments by 2030, compared with $354 billion for blue states.All these factories and battery plants and electric-vehicle charging stations and auto manufacturing facilities give Biden his strongest line against Trump. After comparing the infrastructure weeks Trump never delivered and “the infrastructure decade” he did, Biden noted: “Construction of manufacturing facilities here on U.S. soil grew only 2 percent on my predecessor’s watch in four years. Two percent. On my watch, it’s grown nearly 100 percent in two years.”Biden made a point of saying that in the economy he’s building, “we don’t need everyone to have a four-year degree. It’s great if you can get one; we’re trying to make it easier for you to get one. But you don’t need it to get a good-paying job anymore.”Bernstein didn’t pull his punch on this one. “I’ve been part of Democratic administrations where, basically, the solution to labor market woes was to go to college. The president has seen through that.” Biden, he continued, “realizes something everybody should know. About two-thirds of the work force isn’t college-educated. And there’s no version of Bidenomics that leaves two-thirds of the labor force out.”But here, Biden’s policy argument was a little thinner. He talked up his support for unions and apprenticeship programs, but he named more proposals to help people go to college than to help them get good jobs without a degree.The best thing Biden has done for less-educated workers is preside over a tight labor market. Unemployment has been below 4 percent since February 2022, and workers who are often on the margin are making gains. The Black-white employment gap has nearly closed, and wage gains have been particularly strong for workers without a college education. But the Biden administration’s pride in those numbers only underscores the real problem it faces: Americans felt good about the economy under Trump. They don’t feel good about it under Biden.The reason is simple: Real wages have been falling because inflation has been rising. Biden’s long-term investments, his efforts to rebuild American manufacturing and create millions of news jobs decarbonizing the American economy, will take time to pay off. People have to live in the economy now, not a decade from now.The good news — for both Biden and America — is that real wages have risen over the past few months. Inflation is down by more than half since its peak. Forecasters who were confidently predicting a recession in 2023 are now hedging. Mark Zandi, of Moody’s Analytics, thinks we’ll escape the downturn altogether. Whether the good economic news continues may well decide the 2024 election. Biden has co-opted the best of Trump’s ideas and pursued them with a diligence and focus that Trump never did. But that won’t mean much if voters still find themselves yearning for Trump’s economy.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, Twitter (@NYTopinion) and Instagram. More

    • 125 Shares179 Views

      in Elections

      Biden Isn’t Getting the Credit for the Economy He Deserves

      by

      The misery index is a crude but effective way to measure the health of the economy. You add up the inflation rate and the unemployment rate. If you’re a president running for re-election, you want that number to be as low as possible.When Ronald Reagan won re-election, it was about 11.4, when George W. Bush did so it was 9, for Barack Obama it was 9.5, and today, as Joe Biden runs for re-election, it’s only 7.7.Biden should be cruising to an easy re-election victory. And that misery index number doesn’t even begin to capture the strength of the American economy at the moment. There are a zillion positive indicators right now, as the folks in the administration will be quick to tell you. The economy has created 13 million jobs since Biden’s Inauguration Day. According to the Conference Board, a business research firm, Americans’ job satisfaction is at its highest level in 36 years. Household net worth is surging.We learned Thursday that the U.S. economy grew at an annualized 2 percent rate in the first quarter of this year, well above the economists’ expectations of around 1.4 percent. The best part of it is that the new prosperity is helping those who have long been left behind. In the four years of Donald Trump’s administration, spending on manufacturing facilities grew by 5 percent. During the first two years of Biden’s administration, such investment more than doubled and about 800,000 manufacturing jobs were created.This is not just coincidence. It’s a direct outcome of Biden policies: the Inflation Reduction Act, with its green technology provisions, the infrastructure bill, the CHIPS Act.Biden’s stimulative spending did boost the inflation rate, but inflation is now lower than in many other developed nations and our economy is stronger.So Americans should be celebrating. But they are not. According to an NBC News survey conducted this month, at least 74 percent of Americans say the country is on the wrong track. The Gallup economic confidence index over the past year has been starkly negative; people haven’t felt this bad about the economy since the throes of the global financial crisis in 2008 and 2009. The University of Michigan’s Consumer Sentiment Index is also tremendously downbeat. Joe Biden’s approval numbers have been stuck around a perilously low 43 percent for a year.As the maestro political analyst Charlie Cook noted in 2020, on average, presidents tend to lose their re-election bids when about 70 percent of Americans think the country is on the wrong track, and they tend to win when fewer than half of Americans think that.Why are Americans feeling so bad about an economy that’s so good? Partly, it’s inflation. Things have stabilized recently as inflation has dropped, but for a while there, real wages really were falling. Prices on things like gas and food are now significantly higher than they were three years ago.The Biden folks are hoping that as inflation continues to decline and as they get the word out, Americans will begin to feel better about things. But it’s not that simple.Part of it is the media. A recent study found that over the past couple of decades headlines have grown starkly more negative, conveying anger and fear. That’s bound to spread bad vibes through the populace.But the main problem is national psychology. Americans’ satisfaction with their personal lives is nearly four times as high as their satisfaction with the state of the nation. That’s likely because during the Trump era we have suffered a collective moral injury, a collective loss of confidence, a loss of faith in ourselves as a nation.America has suffered two recent periods of national demoralization. In the 1970s, during Vietnam and Watergate, Americans lost faith in their institutions. During the Trump era, Americans also lost faith in one another. Those who supported Trump were converted to the gospel of American Carnage, the idea that elite Americans seek to destroy other Americans, that we are on the precipice of disaster. Those who opposed Trump were appalled that their countrymen could support him, disgusted by his rampant immorality, alarmed that their democracy was suddenly in peril.The anthropologist Raoul Naroll argued that every society has a “moral net,” a cultural infrastructure that exists, mostly unconsciously, in the minds of its members. America’s is in tatters. This manifests a loss of national self-esteem. People begin to assume national incompetence. Fearful and anxiety-ridden people are quick to perceive the negative aspects of any situation, hypersensitive to threat, prone to pessimism.You can’t argue people out of that psychological and moral state with statistics and fact sheets. Biden is going to have to serve as a national guide, not just an administrator. He has to get outside the protective walls that have been built around him and make himself the center of the nation’s attention, not Trump. He’ll have to come up with a 21st-century national story that gives people a sense of coherence and belonging — that we are marching in a clear direction toward some concrete set of goals.Good jobs numbers alone don’t heal a brutalized national psyche, and that’s our main problem right now.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, Twitter (@NYTopinion) and Instagram. More

    • 138 Shares199 Views

      in Elections

      Republicans’ Problem in Attacking Biden: They Helped Pass His Economic Bills

      by

      No doubt they will take swings at him anyway. But it may be more difficult to land punches given that plenty of them voted for the bipartisan infrastructure and semiconductor manufacturing bills.President Biden isn’t the only one doing a full summer embrace of federal spending on infrastructure and semiconductor manufacturing — so are some of the Republicans aiming to remove him from office next year.The White House has labeled the president’s new economic campaign Bidenomics, a portmanteau that until now has been a pejorative used by Republicans and conservative news outlets primarily to underscore inflation.But in a speech on Wednesday in Chicago about the economy, Mr. Biden latched on, with a renewed focus on the two most significant bipartisan legislative accomplishments of his term, the infrastructure bill and the CHIPS and Science Act. He hopes these measures will help brand him as the cross-aisle deal maker he sold to voters in 2020, appeal to political moderates who formed a core of his winning electoral coalition and impress upon tuned-out voters what he has done in office.One significant benefit for Mr. Biden: Republicans helped pass those bills.While G.O.P. presidential candidates and the Republican National Committee continue to paint Mr. Biden’s economic stewardship as a rolling disaster, Republican senators who helped shape the legislation say they anticipated that those accomplishments would accrue to Mr. Biden’s political advantage — as well as to their own.Senator Todd Young, an Indiana Republican who helped write the enormous bill aimed at revitalizing the domestic semiconductor industry, said the work on a law that he called “off-the-charts popular” had started with Senator Chuck Schumer, Democrat of New York, during President Donald J. Trump’s administration.“The Biden administration deserves credit for advancing the proposal and, irrespective of the timing of its origin, helping it become law,” Mr. Young said.“The Biden administration deserves credit for advancing the proposal and, irrespective of the timing of its origin, helping it become law,” Senator Todd Young, Republican of Indiana, said of the CHIPS and Science Act.Al Drago for The New York TimesSenator Bill Cassidy, Republican of Louisiana, more grudgingly acknowledged the president’s role in securing a trillion-dollar infrastructure bill that had eluded the past two administrations.“When senators from different parties come together to work on solutions to our nation’s problems and then the president jumps in front of the parade, it does not mean he’s the grand marshal,” Mr. Cassidy said.Mr. Biden’s infrastructure bill won votes from 19 Republican senators and 13 Republican House members. Sixteen Senate Republicans and 24 Republicans in the House voted for the semiconductor legislation.It will be difficult for Republicans to land criticism when they themselves are taking credit for the same achievements. The White House on Wednesday highlighted praise for the Biden administration’s broadband spending from Representatives Cathy McMorris Rodgers of Washington and Gus Bilirakis of Florida, Republicans who both voted against the infrastructure legislation that funded it, along with Senator John Cornyn, Republican of Texas.But perhaps no Republican acclaim for the infrastructure legislation brought Mr. Biden more joy than a tweet from Senator Tommy Tuberville of Alabama that said it was “great to see Alabama receive crucial funds.”“To no one’s surprise, it’s bringing along some converts,” Mr. Biden said on Wednesday of his bipartisan legislation. “There’s a guy named Tuberville from Alabama, a senator from Alabama, who announced that he strongly opposed the legislation. Now he’s hailing its passage.” Mr. Biden then dryly drew the sign of the cross on his chest.Steven Stafford, a spokesman for Mr. Tuberville, said that Mr. Biden and his allies had “twisted” the senator’s words. “Now that the bill is law of the land, the people of Alabama deserve their fair share,” he said.And even as Mr. Biden on Monday played up the $42 billion of broadband spending in the infrastructure law, another Republican senator who did vote for it, Susan Collins of Maine, was trumpeting the $272 million from it that is going to her state.Of course, the White House’s celebration of Republican plaudits for legislation Mr. Biden signed will matter little unless the president can persuade voters that these achievements are improving their material well-being.Mr. Biden’s defenders have long maintained that the economic policies he is highlighting in the Bidenomics rebrand are very popular with voters. The problem, these allies say, is that few people connect them with Mr. Biden.And Wednesday’s speech came at a moment when Mr. Biden’s approval ratings on the economy are in dangerous territory.“When senators from different parties come together to work on solutions to our nation’s problems and then the president jumps in front of the parade, it does not mean he’s the grand marshal,” said Senator Bill Cassidy, Republican of Louisiana.Haiyun Jiang/The New York TimesAn Associated Press/NORC poll released Wednesday found that just 34 percent of adults approved of Mr. Biden’s handling of the economy. Among Democrats, only 60 percent — and a mere 47 percent of those 45 years old or younger — approved of his economic stewardship.The millstone is inflation, which has tempered sharply from its peak last year but remains above the norm. Whether inflation is at 9 percent or 4 percent, prices remain high, which may be why the president speaks less about the $1.9 trillion pandemic relief plan, which passed early in his tenure and has been blamed even by the Federal Reserve for part of the surge of inflation. It is also why Republicans continue to mock what they call the inaptly named Inflation Reduction Act, which passed in 2022 on strictly Democratic votes.“It makes sense for him to emphasize the bipartisan bills that passed that should have economic impact as opposed to the totally partisan bills that drove inflation,” said former Senator Roy Blunt of Missouri, who voted for both the infrastructure and semiconductor bills before his retirement early this year.Representative Thomas Massie, Republican of Kentucky, made clear that his party intended to lump all of the achievements being promoted by Mr. Biden into the inflationary maw, including the infrastructure and semiconductor legislation.“Both of those bills caused inflation, which is Biden’s biggest albatross in the upcoming election,” he said, “so I don’t think they did him any favors,” referring to Republicans who helped pass the measures.In his speech on Wednesday, Mr. Biden said that the pandemic relief plan had driven unemployment down from above 6 percent to below 4 percent. He suggested that his economic leadership would achieve an even broader goal he placed at the center of his 2020 campaign: restoring the soul of America.“It’s going to help lessen the division in this country by bringing us back together,” Mr. Biden said. “It makes it awful hard to demagogue something when it’s working.”The Republicans aiming to unseat Mr. Biden weren’t buying the economic kumbaya. The Trump campaign on Wednesday said “Bidenomics has created the worst economic decline since the Great Depression.” Gov. Ron DeSantis of Florida, in a Fox News appearance, said Mr. Biden’s policies mean “everybody pays more for basic staples of life.”Republicans are loath to concede that the passage of two major bills makes Mr. Biden a bipartisan statesman. Those bills are “not only not emblematic, it’s the exception,” said Josh Holmes, a longtime political adviser to Senator Mitch McConnell of Kentucky, the Republican leader, who voted for the infrastructure bill.In truth, more bills than those passed with bipartisan support in the last Congress. Mr. Biden enters the 2024 election cycle as the beneficiary of an extraordinary bout of productivity that included a modest gun control law, a legal codification of same-sex marriage, and a revamping of procedures for counting Electoral College votes after Mr. Trump tried to hijack that obscure process.Senators from both parties put aside their tendency to push for only the legislation they want or pocket the issue for the next election.“We can’t get in a place in the country where you don’t vote for something you believe needs to pass because you think it might help the other side,” Mr. Blunt said.Democrats point to the circumstances that Mr. Biden inherited in 2021 — the attack on the Capitol by a mob of Trump supporters determined to overturn the election results.“There was a sizable group of Senate Republicans who looked the death of democracy in the eye on Jan. 6 and decided to try to show people that democracy could still work,” said Senator Chris Murphy, Democrat of Connecticut.But Mr. Murphy also credited the legislative skills of Mr. Biden, honed over 36 years in the Senate.“A lot of my progressive friends were angry he wasn’t punching Republicans in the mouth so much,” Mr. Murphy said, “but he kept the door open for Republicans to work with us on infrastructure, guns and industrial policy.”Cecilia Kang More