Among the many things President Joe Biden needs to accomplish during his State of the Union address Thursday is to turn the conversation about the economy around.
The facts are on his side, but many voters don’t feel them. To change that, he’s got to tell voters every day until Election Day exactly what he’s doing to tackle one of their biggest concerns: high prices.
People often credit themselves for getting a raise, but blame the government, and especially the president, when life costs more.
Thirty-one percent of voters say the economy has improved, a 10-point increase in just a few months. The president, however, is not reaping the rewards.
Despite good, empirical data about the economy, people experience higher prices every day, everywhere they go, from restaurants to grocery stores. It’s what sticks in people’s minds. And while wages have gone up, from a behavioral economic standpoint, people often credit themselves for getting a raise, but blame the government, and especially the president, when life costs more.
That’s the predicament Biden finds himself in going into the election. Which makes the message around the economy crucially important.
Let’s start with the truth, even if it’s not universally acknowledged: A year ago, there was near total agreement a recession was coming.
Instead, the economy grew 2.5% in 2023.
Unemployment was expected to rise, especially as the Federal Reserve sharply hiked interest rates to slow inflation (and the economy). Instead, unemployment has hovered below 4% for nearly two years, something not seen since the 1960s. Today, it’s 3.7%. At the same time, employers are hiring at a furious pace. Last year, nearly 3 million jobs were created — maybe that has something to do with the 5.5 million new businesses started last year.
Consumers are feeling better about the economy. A recent survey found they’re feeling more confident about both the economy and that inflation will keep slowing. CEOs are more…
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