US President Joe Biden will deliver a significant speech in an attempt to uplift Americans' pessimistic sentiment towards the economy. Biden, who has witnessed a strong recovery from the
COVID-19-induced recession during his two-year term, has seen his public approval ratings decline due to concerns about inflation and the broader impact of rising interest rates on the economy's trajectory.
During the speech in Chicago, President Biden will reintroduce his vision of fostering prosperity for the middle class. His philosophy involves taxing the wealthy to invest in critical areas such as semiconductors, worker education, and improving economic competition. These details were previewed by aides who briefed reporters.
According to a Reuters/Ipsos poll conducted earlier this month, more than half (54%) of Americans disapprove of Biden's job performance, with only 35% approving of his handling of the economy. Voters rank the economy as their top concern.
In the first quarter, the US economy grew at an annualized rate of 1.3%, and unemployment stood at 3.7% in May, while inflation increased at a rate of 4% year-over-year. White House aides view these inflation figures as elevated but on a positive trajectory due to Biden-supported policies aimed at reducing deficit spending and lowering costs across various products.
Federal Reserve officials have indicated that they believe there is still a long way to go to bring inflation down to healthy levels and may need to further raise borrowing costs, which could potentially lead to a recession.
Aides have coined the term "Bidenomics" to encapsulate the Democratic president's approach, highlighting the contrast with the tax-cutting philosophy associated with Republican former President Ronald Reagan, known as "Reaganomics."
Lael Brainard, the director of Biden's National Economic Council, stated, "The president vowed to put in place a very different approach – an approach that grows the economy from the middle out and the bottom up."
It remains uncertain whether Biden's message will resonate with the public. The speech is scheduled for the summer afternoon ahead of the July Fourth holiday, approximately 16 months before voters head to the polls, while Republicans are still sorting through a wide field of potential candidates, led by former President Donald Trump.
Biden's previous major address to the nation, delivered from the Oval Office on June 2 to announce a bipartisan deal ending the debt limit crisis, attracted an audience of only 6.2 million people and was only covered by two major US broadcast networks, according to research firm Nielsen.
In the early stages of the race, Trump has made inflation a central focus of his criticisms against Biden. Republican National Committee chairwoman Ronna McDaniel stated, "Americans are worse off under Biden. Prices continue to skyrocket, and hardworking Americans pay the price for failed 'Bidenomics.'"
During his time in the Chicago area, Biden, aged 80, is also expected to attend a fundraising event before the deadline for federal fundraising records. He is not anticipated to face a significant challenge for his party's nomination. Photo by Gage Skidmore from Surprise, AZ, United States of America, Wikimedia commons.