Economic growth decelerating, while inflation on the rise: New challenges ahead under Bidenomics

President Biden recently mentioned his blue-collar blueprint for rebuilding America and claimed it was working. However, the very next day, Bidenomics faced a setback: the economy only grew at a 1.6% annualized rate in the first quarter, which was lower than expected.

Not only is economic growth slowing down, but inflation is on the rise. The PCE price index, excluding food and energy, increased by 3.7% in the first quarter, indicating that interest rates are likely to remain high.

Additionally, real median wages have been declining and many new jobs created are part-time positions or government jobs. Despite some experts claiming the economy is thriving, the reality is different for many Americans.

These challenges are a result of Bidenomics, which is why the president has stopped using the term. The increase in inflation began with the American Recovery Act and has been exacerbated by subsequent spending bills and regulatory measures.

Biden’s policies have also led to higher energy prices and have not been successful in promoting renewable energy sources. The president’s reluctance to change his economic strategy may lead to further inflation and economic stagnation.

The grim GDP and PCE news from Thursday underscore the challenges the economy is facing. Voters may consider these factors in the upcoming election and opt for a change if needed.