The Economy and Inflation: Key Issues for Voters
According to a recent ABC News-Ipsos study, the economy and inflation remain the most important issues for voters and are likely to determine their choice of president in the upcoming election. Surprisingly, the study also revealed that more Americans trust former President Donald Trump to handle the economy and inflation than President Joe Biden. This sentiment is echoed in other surveys as well.
Gallup’s latest Economy and Personal Finance poll found that confidence in President Biden’s management of the economy is historically low compared to his predecessors. Only 38 percent of U.S. adults have “a great deal” or “a fair amount” of confidence in President Biden, while 46 percent feel the same way about former President Trump. Similarly, an April Reuters-Ipsos poll showed that 41 percent of respondents believe Trump had a better approach to managing the economy than Biden.
President Biden has pushed back against these assertions, claiming that he has been successful in creating jobs while his predecessor failed. He stated that he has created over 15 million jobs since taking office. However, experts argue that this number is misleading because it includes jobs that were returned from the pandemic. According to Bureau of Labor Statistics (BLS) data, employment stood at 152.3 million in February 2020, dropped to 130.4 million two months later, and then recovered to 158.286 million in the summer of 2022.
The president also addressed concerns about inflation, acknowledging that rising prices are a cause for concern. He attributed higher prices to corporate greed and shrinkflation, which is the practice of reducing product sizes while maintaining the same price. The administration has taken steps to combat unfair pricing, announcing a new Department of Justice-Federal Trade Commission strike force in March.
President Biden remains optimistic about the state of the economy, emphasizing that he inherited a collapsing economy and has successfully turned it around. He pointed to the fact that the United States currently has the strongest economy in the world. However, critics argue that the smaller-than-expected first-quarter GDP reading of 1.6 percent and rising inflation indicate potential weaknesses in the economy.
Ultimately, voters will have to evaluate the presidents’ records on key economic issues such as inflation and real disposable income per capita. The question that often arises at this point in the election cycle is whether voters feel better off now than they did four years ago. The outcome of the election may hinge on how voters perceive their personal economic situation and which candidate they trust to handle the economy effectively.
