Why Biden’s strong economy feels so bad to most Americans

[havoc00]

What’s the biggest problem with the US economy right now? The vibes are off.

By almost any objective measure, Americans are doing much better economically than they were nearly three years ago, when President Joe Biden took office. Still, a majority — 58% — say Biden’s policies have made economic conditions worse, according to a new CNN Poll conducted by SSRS.

That’s up from 50% a year ago.

But the grim outlook is at odds with the hard data, which reveal an economy bursting with optimism.

“Has the economy improved under Joe Biden? There’s literally no question,” said Justin Wolfers, a professor of public policy and economics at the University of Michigan.

https://www.cnn.com/2023/09/07/busin...val/index.html

[Dave22reborn]

8.25% interest rates for a 30 year mortgage.......

[tripod29]

At least the national debt has been reduced....

[BeachPro11]

It feels worse, and is worse, because the 2 main things that people REALLY CARE about are money in your bank account and safety. Mainly $ spent for everyday living like groceries and energy and housing, and safety issues such as an open border, high crime, war, etc.

Those things have all gotten worse for everyday Americans.

[bartosh]

Seems like it’s been great for corporations and not for people

It’s great for the country and bad for the country depending on how you want to spin it

[NYPat]

But the grim outlook is at odds with the hard data, which reveal an economy bursting with optimism.

“Has the economy improved under Joe Biden? There’s literally no question,” said Justin Wolfers, a professor of public policy and economics at the University of Michigan.

https://www.cnn.com/2023/09/07/busin...val/index.html

Thanks Biden!

[NYPat]

It feels worse, and is worse, because the 2 main things that people REALLY CARE about are money in your bank account and safety. Mainly $ spent for everyday living like groceries and energy and housing, and safety issues such as an open border, high crime, war, etc.

Those things have all gotten worse for everyday Americans.

So those things have gotten worse for you? Or is the answer no and you're just speaking for everyone else? If so, got any proof? Cause unemployment is the lowest it's ever been and Americans are making more money than they ever have.

If you think it's bad right now you're most likely a red voter... and that belief is not based in reality.

[fitnessislife]

So those things have gotten worse for you? Or is the answer no and you're just speaking for everyone else? If so, got any proof? Cause unemployment is the lowest it's ever been and Americans are making more money than they ever have.

False. People returning to their original jobs don't equal jobs created, and American buying power is in the dumpster over the last three years.

If you think it's bad right now you're most likely a red voter... and that belief is not based in reality.

Says the faithful Rachel Maddow viewer. Lol.

[mikebadg3]

So those things have gotten worse for you? Or is the answer no and you're just speaking for everyone else? If so, got any proof? Cause unemployment is the lowest it's ever been and Americans are making more money than they ever have.

If you think it's bad right now you're most likely a red voter... and that belief is not based in reality.

gas is up like crazy

everythings more expensive

wages aren't following costs of living

[fitnessislife]

gas is up like crazy

everythings more expensive

wages aren't following costs of living

All 100% Biden's fault.

[NYPat]

gas is up like crazy

everythings more expensive

wages aren't following costs of living

It's not.

The entire world went through a once in a hundred years pandemic that caused supply chain issues which caused inflation. It happens.

Wages will only go up as boomers die off and there aren't enough workers to fill the void. Inflation is under control now and wages will catch up.

[mikebadg3]

It's not.

The entire world went through a once in a hundred years pandemic that caused supply chain issues which caused inflation. It happens.

Wages will only go up as boomers die off and there aren't enough workers to fill the void. Inflation is under control now and wages will catch up.

i want to believe you but the data says otherwise

[NYPat]

i want to believe you but the data says otherwise

It doesn't. That's the point of the OP article.

[isingmodel]

8.25% interest rates for a 30 year mortgage.......

Interest rates historically have been much higher than the funny money period of 2010 onwards. Heck the federal funds rate average from 1970 till now is about 5.5%, which people now consider very high.

People are used to extremely cheap credit, largely because the Fed has gotten them accustomed to that. Heck the last Fed chairman who could seriously be labelled a hawk was Paul Volcker who dealt with the 1970s inflation period which was again caused by printing and keeping rates artificially low.

Everyone since then - Greenspan, Bernanke, Yellen, Powell have all continued the same funny money **** and it's only gotten worse.

[BeachPro11]

Interest rates historically have been much higher than the funny money period of 2010 onwards. Heck the federal funds rate average from 1970 till now is about 5.5%, which people now consider very high.

People are used to extremely cheap credit, largely because the Fed has gotten them accustomed to that. Heck the last Fed chairman who could seriously be labelled a hawk was Paul Volcker who dealt with the 1970s inflation period which was again caused by printing and keeping rates artificially low.

Everyone since then - Greenspan, Bernanke, Yellen, Powell have all continued the same ****.

IMO you should concentrate more on your K pop beauties like Le Serrafim rather than something so mundane like the economy.

[freeheeler]

So those things have gotten worse for you? Or is the answer no and you're just speaking for everyone else? If so, got any proof? Cause unemployment is the lowest it's ever been and Americans are making more money than they ever have.

If you think it's bad right now you're most likely a red voter... and that belief is not based in reality.

Mortgages 8+%

Inflation 18% over 3 years and that's a gross under estimation

Yeh, people are happy

Thanks Biden

[Dude.Jon]

Hmm lets see...

-Spending more $ for less shows up as economic growth
-Working multiple jobs just to get by shows strong employment, yet there are fewer workers in the labor market compared to pre-pandemic
-Consumer debt exploding (highest ever recorded) shows strong spending
-Inflation peaked at 9.1% in 2022 when in reality it was over 20% and continues to deplete savings and increase consumer debt
-Last year, 35% of Americans said they couldn't afford $400 surprise expense, up from 20% the year prior, and it's getting worse
-Median savings in the US is $1,200, compared to $4500 in 2022
-The average monthly expenses for Americans in 2022 increased in virtually all categories (housing, food, transportation, insurance), and decreased in entertainment
-Millions of illegal entries into the US since 2020 continues to drive down labor costs, drain resources, and overwhelm public infrastructure
-Billions of dollars continue to be sent overseas for [current event]
-Companies are getting squeezed by interest rates & are unable to finance operations and restructure debt affordably
-Oil companies are investing much less in the current toxic political environment when it comes to energy exploration and investment, which will slowly drive up energy prices and all energy derivatives
-Consumer debt interest rates increasing
-Renting is cheaper than buying a home at today's rates
-While the median cost of a home in the US is down month over month 2.5% (394k in Sept. from 404k in Aug), rates are up from 6.9% to 7.63 (fixed 30 yr)
-Home prices go down 2.5% and interest rates go up 8.5% increasing mortgage payment from $2,075 to $2,288 assuming 20% down (which 1st time home buyers can't afford), with 3% down the payments are $2,517 and $2,775
-Commercial banks are tens and hundreds of billions underwater in treasuries
-FED at this point is (kind of) preventing a global financial crisis by purchasing treasuries from commercial banks at par value instead of market value
-Americans are watching the government debt explode watching their money sent overseas



This is all based on a handful of searches using BLS data, FED data, Forbes, a few other articles, and a functioning brain.


Meanwhile the diversity hires in the Biden admin tell us the economy is strong and everything is good.


I can't imagine why people are so upset. Let's ask one of the board shills.

[gluon]

Interest rates historically have been much higher than the funny money period of 2010 onwards. Heck the federal funds rate average from 1970 till now is about 5.5%, which people now consider very high.

People are used to extremely cheap credit, largely because the Fed has gotten them accustomed to that. Heck the last Fed chairman who could seriously be labelled a hawk was Paul Volcker who dealt with the 1970s inflation period which was again caused by printing and keeping rates artificially low.

Everyone since then - Greenspan, Bernanke, Yellen, Powell have all continued the same funny money **** and it's only gotten worse.

oh yea we had high interest rates 30 years ago so everything is fine, we just need to get used to it
its not like:

1990
median income - 50k
median home price- 75k

2023
median income- 60k
median home price- 380k

[BeachPro11]

Hmm lets see...

-Spending more $ for less shows up as economic growth
-Working multiple jobs just to get by shows strong employment, yet there are fewer workers in the labor market compared to pre-pandemic
-Consumer debt exploding (highest ever recorded) shows strong spending
-Inflation peaked at 9.1% in 2022 when in reality it was over 20% and continues to deplete savings and increase consumer debt
-Last year, 35% of Americans said they couldn't afford $400 surprise expense, up from 20% the year prior, and it's getting worse
-Median savings in the US is $1,200, compared to $4500 in 2022
-The average monthly expenses for Americans in 2022 increased in virtually all categories (housing, food, transportation, insurance), and decreased in entertainment
-Millions of illegal entries into the US since 2020 continues to drive down labor costs, drain resources, and overwhelm public infrastructure
-Billions of dollars continue to be sent overseas for [current event]
-Companies are getting squeezed by interest rates & are unable to finance operations and restructure debt affordably
-Oil companies are investing much less in the current toxic political environment when it comes to energy exploration and investment, which will slowly drive up energy prices and all energy derivatives
-Consumer debt interest rates increasing
-Renting is cheaper than buying a home at today's rates
-While the median cost of a home in the US is down month over month 2.5% (394k in Sept. from 404k in Aug), rates are up from 6.9% to 7.63 (fixed 30 yr)
-Home prices go down 2.5% and interest rates go up 8.5% increasing mortgage payment from $2,075 to $2,288 assuming 20% down (which 1st time home buyers can't afford), with 3% down the payments are $2,517 and $2,775
-Commercial banks are tens and hundreds of billions underwater in treasuries
-FED at this point is (kind of) preventing a global financial crisis by purchasing treasuries from commercial banks at par value instead of market value
-Americans are watching the government debt explode watching their money sent overseas



This is all based on a handful of searches using BLS data, FED data, Forbes, a few other articles, and a functioning brain.


Meanwhile the diversity hires in the Biden admin tell us the economy is strong and everything is good.


I can't imagine why people are so upset. Let's ask one of the board shills.

Agree with all and to me the BIGGEST fallacy of all is inflation. Especially inflation for important things like food. Don't get me wrong the govt lies about real inflation during Republican administrations as well, but they are on steroids lying during the Biden term. I went grocery shopping the other day and I was stunned how so many items have gone up 50%, 75%, even more than 100% compared to even 4 or 5 years ago. I was looking at beef that compared to a few years ago is selling for 100% more.

Price of housing? Absolutely ridiculous. Both to own and to rent.

I mean it is very very obvious that real food inflation is up overall at least 40% and probably much more. But of course that is never admitted. One thing that really hasn't gone up? Alcohol. And I can only imagine the reasons for that.

And then you add in the fact that people just don't feel safe compared to a few years ago. It started with the BLM riots and continues now with illegals flooding the border and Dem prosecutors, judges, and politicians catering to criminals. Add in wars and turmoil around the world and people are jittery.

[Polaris]

Agree with all and to me the BIGGEST fallacy of all is inflation. Especially inflation for important things like food. Don't get me wrong the govt lies about real inflation during Republican administrations as well, but they are on steroids lying during the Biden term. I went grocery shopping the other day and I was stunned how so many items have gone up 50%, 75%, even more than 100% compared to even 4 or 5 years ago. I was looking at beef that compared to a few years ago is selling for 100% more.

Price of housing? Absolutely ridiculous. Both to own and to rent.

I mean it is very very obvious that real food inflation is up overall at least 40% and probably much more. But of course that is never admitted. One thing that really hasn't gone up? Alcohol. And I can only imagine the reasons for that.
.

Even now, at the grocery store, you will STILL see random things just suddenly shoot up in price significantly.

[isingmodel]

oh yea we had high interest rates 30 years ago so everything is fine, we just need to get used to it
its not like:

1990
median income - 50k
median home price- 75k

2023
median income- 60k
median home price- 380k

Interest rates being kept artificially low contributes to housing inflation, you dolt. Wages are an entirely different matter

[gluon]

Interest rates being kept artificially low contributes to housing inflation, you dolt. Wages are an entirely different matter

sure buddy

[isingmodel]

IMO you should concentrate more on your K pop beauties like Le Serrafim rather than something so mundane like the economy.

There is time in life for everything

[Dude.Jon]

Agree with all and to me the BIGGEST fallacy of all is inflation. Especially inflation for important things like food. Don't get me wrong the govt lies about real inflation during Republican administrations as well, but they are on steroids lying during the Biden term. I went grocery shopping the other day and I was stunned how so many items have gone up 50%, 75%, even more than 100% compared to even 4 or 5 years ago. I was looking at beef that compared to a few years ago is selling for 100% more.

Price of housing? Absolutely ridiculous. Both to own and to rent.

I mean it is very very obvious that real food inflation is up overall at least 40% and probably much more. But of course that is never admitted. One thing that really hasn't gone up? Alcohol. And I can only imagine the reasons for that.

And then you add in the fact that people just don't feel safe compared to a few years ago. It started with the BLM riots and continues now with illegals flooding the border and Dem prosecutors, judges, and politicians catering to criminals. Add in wars and turmoil around the world and people are jittery.

And it will continue to get worse. It's 4th turning time.

Financial conditions will deteriorate until the FED does something like NOT QE, or yield curve control, rather a catchy acronym which does the same thing.

Edit: with the leadership (rather the lack-thereof) the US has, you can bet things will get worse. Unless someone gets in office and puts the US on track to bring the deficit down and reverse the debt, low interest is the final hail mary. Then comes the wealth tax forcing investors to offload assets and prevent their $ from getting into the hands of a failing banana republic.

[BeachPro11]

There is time in life for everything

I would not have time for anything else if my blood shared the same as these heavenly blessed beauties.

Concentrate on what is important my man!

[Abzu]

It's not.

The entire world went through a once in a hundred years pandemic that caused supply chain issues which caused inflation. It happens.

Wages will only go up as boomers die off and there aren't enough workers to fill the void. Inflation is under control now and wages will catch up.

Nope.

Inflation happened because the fed didn't raise rates in 2021 to get ahead of what was obviously coming.

When inflation came, they said inflation was "transitory", which doesn't mean anything(as they later admitted) but it served to give the impression that inflation would be short and work itself out(which they knew was a lie. Holding off on rate hikes allowed Biden to look economically strong but also allowed him to spend and for inflation to run to a terminal point far above what it should have been with good management.

[Abzu]

“Has the economy improved under Joe Biden? There’s literally no question,” said Justin Wolfers, a professor of public policy and economics at the University of Michigan.

https://www.cnn.com/2023/09/07/busin...val/index.html

The question isn't is the economy strong under Joe Biden, it is why is the economy so resilient under Joe Biden?

The anwser is complicated but to start, China has been on some sort of lockdown since Biden has been president, the dollar is not solely about the strength of America, it is weighted against other currencies(countries) and the weakness of the second largest economy has forced foreign investment into America and into the dollar for "safety".

Joe Biden has been spending a lot of money into a strong underlying economy to boost GDP while weakening the underlying economy. The housing market is being held up by the millions of illegals coming into America who are getting housed with American tax dollars which regular legal Americans have to compete with in the marketplace and a low supply of space. Biden said that he would attack oil and he has, even though they say there are more leases available, they are leases in areas the drillers don't want and the areas they do want, they cant get approval for.



That's just off the top of my head on a Saturday, there is much more to this and that's why Americans have a hard time understanding it, it's complicated.

[wickedman]

One of those sneaky economic boons where 95% of people feel like they have less buying power but they are actually all much better off... yes.

[BeachPro11]

The question isn't is the economy strong under Joe Biden, it is why is the economy so resilient under Joe Biden?

The anwser is complicated but to start, China has been on some sort of lockdown since Biden has been president, the dollar is not solely about the strength of America, it is weighted against other currencies(countries) and the weakness of the second largest economy has forced foreign investment into America and into the dollar for "safety".

Joe Biden has been spending a lot of money into a strong underlying economy to boost GDP while weakening the underlying economy. The housing market is being held up by the millions of illegals coming into America who are getting housed with American tax dollars which regular legal Americans have to compete with in the marketplace and a low supply of space. Biden said that he would attack oil and he has, even though they say there are more leases available, they are leases in areas the drillers don't want and the areas they do want, they cant get approval for.



That's just off the top of my head on a Saturday, there is much more to this and that's why Americans have a hard time understanding it, it's complicated.

We disagree on a lot, but that is a good analysis. Repped.

[leafs43]

The economy isn't healthy.

End thread.