The Impact of Bidenomics on Inflation: A Closer Look

President Joe Biden spent a significant portion of his third year in office touting the success of his economic plan for the American economy. Biden spoke to a chapter of the International Brotherhood of Electrical Workers in Maryland, highlighting various economic indicators and pointing to his administration’s achievements. He proudly stated that his economic plan, which focused on growing the economy from the bottom up and the middle out, was showing positive results, and he credited the American people for its success.

Biden frequently referenced “my economic plan” or “the Biden economic plan” in his prepared speeches and statements. He repeatedly claimed that his plan was working and pointed to the creation of new jobs, declining gas prices, and reduced inflation as evidence of its success. In the summer of 2023, Biden adopted the term “Bidenomics” to describe his economic policies, a name that had initially been used as a negative label by his critics.

The President’s push for Bidenomics was a strategic attempt to shift public opinion in favor of his economic policies, as polls showed widespread dissatisfaction with the state of the economy. However, Biden’s approach to the economy centered on government spending, which critics argued led to inflation and inefficient use of funds. The Bidenomics strategy was primarily a messaging campaign rather than a fundamental shift in policy vision.

One of the key components of Bidenomics was the American Rescue Plan, which aimed to provide pandemic relief and empower American workers. However, critics raised concerns about the excessive government spending included in the plan, particularly the funding allocated to state and local governments without strict usage requirements. It was revealed that many states had unexpectedly high revenue and had used ARP funds for non-pandemic-related expenses. Additionally, large amounts of funding allocated for schools remained unspent, raising questions about the necessity of additional financial assistance.

Overall, the Bidenomics strategy emphasized government spending to address economic challenges, but critics highlighted concerns about the effectiveness and proper allocation of the allocated funds.