Biden Boasts Economic Success Amid Global Market Turbulence

On the brink of a global market downturn, President Joe Biden recently declared, "I cured the economy," in a bold assertion of his administration's economic achievements. This statement came just days before a significant market rout that has raised concerns among investors and economists alike.

The President's comments followed a series of economic reports showing mixed signals about the U.S. economy. Biden highlighted the robust 2.8% GDP growth in the second quarter of 2024, attributing this success to strong consumer spending and business investments. "When I took office, we were in the midst of the worst economic crisis since the Great Depression," Biden remarked, emphasizing the turnaround under his leadership​. (This is not true it should be pointed out.)

This is the Biden Harris economy. Kamala Harris unleashed inflation and fueled the worst border crisis in U.S. history. It's broken…and you have kamala harris hiding like Biden.

America cannot afford a Democrat presidency. pic.twitter.com/60RHXnFDbv

— Sibyl🇺🇸♥️🌹🩷 (@ordinarygirl1) August 4, 2024

Despite these positive growth figures, the economic picture is not rosy. Inflation, although lower than its peak, remains a concern. The Personal Consumption Expenditures (PCE) price index, a key measure of inflation, has shown signs of easing, with a year-over-year increase of 2.5% as of June 2024. Biden touted this as progress, stating, "We are making real progress fighting inflation"​​. He said this despite many consumer items up 25% or more in price since Biden came into office.

The current market rout, driven by fears of a slowdown in major economies and geopolitical tensions, has created uncertainty. Economists warn that the ongoing turbulence could impact future growth prospects. "We’re seeing signs of a slowdown in the U.S. economy that could shrink the growth rate in the near future," noted a report from the Conference Board​​.

Biden: I cured the economy

NASDAQ: We have never been down 1,000+ points ever, not even intraday on the Nasdaq pic.twitter.com/PCyYf5OOvy

— Kevin Dalton (@TheKevinDalton) August 5, 2024

Critics argue that Biden's policies have failed. Some economists point out that while GDP growth has been strong, it has not necessarily translated into economic stability. Real wages, adjusted for inflation, are still below pre-pandemic levels, and high prices continue to strain household budgets. "Wages have gone up under Biden, but not as fast as prices,".

Additionally, the President's assertion of "curing" the economy is met with skepticism by those who cite ongoing issues such as high national debt and persistent supply chain disruptions. The Federal Reserve's efforts to combat inflation through interest rate hikes have also created headwinds for economic growth, complicating the administration's efforts to sustain momentum​ ​.

Despite these challenges, Biden remains optimistic. He continues to promote his administration's economic agenda. "We’re going to keep building on this progress to lower costs for all Americans," Biden stated, reiterating his commitment to economic recovery and stability​.

As global markets remain volatile, the effectiveness of Biden's economic policies will be tested in the coming months. Investors and policymakers alike will be watching closely to see if the President's confident claims make any sense.