Bidenomics – The White House’s New Economic Doctrine

The White House trumpets an economic doctrine it calls Bidenomics. It's a catchy term, but Americans are less familiar with the policies that it entails.

Bidenomics is a new term that the White House has embraced to describe the economic policies the president is using to build America’s middle class and grow the economy. The term is meant as a contrast to the Reaganomics economic policy that favored tax cuts for the wealthy and the belief that wealth would trickle down to other Americans. Bidenomics, on the other hand, is a “government-centered approach” to economic growth that focuses on making smart investments in areas like chipmaking and solar energy and encourages competition to lower costs and boost innovation.

Biden is promoting the term as he gears up for his 2024 reelection campaign. He used it in a speech in Chicago on Wednesday to highlight some of the successes he has claimed as a result of his economic policies. “Bidenomics is about growing the economy from the middle out and bottom up, not the top down,” he said. However, he may find it difficult to sell the idea to voters. According to polling, Americans aren’t as enthusiastic about his efforts to improve the economy as they are about other aspects of his presidency. In addition, they are concerned about the possibility of rising inflation and high gas prices. Biden needs to be careful not to oversell his economic record, or he could risk alienating the same voters who are giving him low approval ratings.

How Does Bidenomics Plan Work
Bidenomics - The White House's New Economic Doctrine 1

How Does Bidenomics Plan Work?

A central part of the plan involves a major investment in infrastructure, including roads, bridges, and airports. It also calls for fairer taxes on wealthy individuals and corporations to ensure that all taxpayers contribute to government services, a principle known as fiscal fairness. The Bidenomics plan is designed to boost middle-class prosperity and reduce inequality while cutting the deficit.

Another key aspect of Bidenomics is promoting manufacturing and job creation. It would boost science and technology education and promote competition by enforcing antitrust laws. It would also support workers’ rights and strengthen labor unions. The administration says this will boost American jobs and increase competitiveness with global competitors.

The Bidenomics plan faces a challenge from Republicans who say that it will raise taxes and hurt the economy. They argue that the economy is strong, unemployment is low, and inflation is down. Moody’s economist Mark Zandi says the improving economic picture has a lot to do with the fading effects of the pandemic and a rebound in global demand for US goods.

The Differences Between Reaganomics and Bidenomics
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The Differences Between Reaganomics and Bidenomics

Unlike Reaganomics, which promoted supply-chain economics and the removal of government regulations to drive economic growth, Bidenomics calls for investments in infrastructure and technology, higher taxes for the rich and corporations, and a commitment to fairness in the tax code. It also focuses on creating jobs and opportunities for the middle class, including investing in education and workforce development.

But Republicans argue that Bidenomics is an economic disaster, noting high-interest rates and inflation that remains above pre-pandemic levels. And they point to a new poll that finds only 34% of Americans approve of Biden is job handling the economy, according to The Associated Press-NORC Center for Public Affairs Research.

Still, the White House believes that promoting Bidenomics is important to the president’s reelection campaign. It’s betting that strong economic growth and kitchen table issues will drown out the culture war concerns that Republicans have been stoking with their relentless attacks on his presidency.

What Has Bidenomics Done
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What Has Bidenomics Done?

Despite some economic headwinds, it’s not too early to call Bidenomics a success. The economy has continued to grow, inflation has fallen, and unemployment is at historic lows. It’s also worth noting that, even though the president has taken credit for Bidenomics in his campaign rhetoric, he took office during what is widely considered to be the worst economic crisis since the Great Depression.

The White House doesn’t define what “Bidenomics” is, but the administration has described it as an approach that prioritizes economic approaches that benefit America’s middle class and those left behind – not big businesses and the rich. This includes policies that seek fairness in tax codes and enforcement, encourage innovation, and protect market competition.

This has included the trillion-dollar Inflation Reduction Act, which invested in climate jobs and American manufacturing, and the Bipartisan Infrastructure Plan, which funded roads, bridges, and internet infrastructure projects. The administration has also sought to empower workers by funding more registered apprenticeships and career technical education than any other administration, supporting unions, and investing in programs like free community college and universal pre-K.

The White House also points to initiatives like the semiconductor manufacturing bill, which is designed to boost domestic production of computer chips that power everything from cars to washing machines. It’s an ambitious strategy and one that faces a number of challenges, including the fact that inflation remains high, real wages haven’t kept pace with rising prices, and the Federal Reserve is likely to continue raising interest rates — something that could slow hiring and cause a slowdown in growth.

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