Americans Aren’t Buying Bidenomics As The US Enters An Election Year
After years of COVID and economic instability, the US economy is once again bustling. The recession is (supposedly) canceled, and life is good… Unless your name is Joe Biden. FiveThirtyEight polling data show the US president’s average approval rating falling to 38.5%, following the lows of other post-WWII predecessors like Donald Trump and Jimmy Carter.
FED up: Most Americans disapprove of America’s oldest president, and voters just aren’t buying into the Democratic President’s pro-labor economic policy (a.k.a. Bidenomics). Only 2% of voters said the economy was excellent in a Times/Siena poll, citing frustration with high prices and interest rates:
- You weigh the good… The US has dodged the slowdown seen in other global economies; GDP grew 4.9% YoY last quarter, and employers have created more than 14M new jobs since Biden took office.
- With the bad… The worst of inflation is behind us — remaining at just 3.7% YoY in September — but its impact has left Americans unable to finance major purchases.
Setting the stage for 2024
In Tuesday’s state and local elections, Democrats eked out victories in key states like Virginia and Ohio — giving Biden a much-needed victory. But Dems still have a lot to prove for their rematch with ex-Republican President Donald Trump in less than a year:
- 64% of voters rank lower prices for goods, services, and gas as their “top priority” in a recent YouGov poll — but voters expect Donald Trump to be more focused on prices.
- 53% of Americans trusted Republicans to “do a better job of keeping the country prosperous,” per a September Gallup poll — handing the GOP its widest lead over Dems in 32 years.
Voting your 401(K): The outcome of national elections has lasting consequences for the economy and market. Split control of Congress is considered positive among financial professionals because of the lack of “majority policy changes.” But some may vote with their portfolios — where, per the NYT, the S&P 500 is only up ~15% since Biden, compared to Trump’s 65%.