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State of Economy
What is the current state of our economy? Has Bidenomics helped our economy like Kamala Harris keeps on saying? Did the United States have a soft landing like Janet Yellen and Jerome Powell said? Democrats are saying we dodged a bullet because of the Biden Administration. The unemployment numbers came in at 4.2%. Are the unemployment numbers real or not accurate? Inflation numbers are at 3% but that number is not correct if you shop for goods and services. Mortgage rates went from 2.5% in 2019 to 7.5%. How did the sudden 400% jump in rates affect the economy? How is the 100% plus increase in home values affecting our economy? How is unemployment numbers at 4.2% is not reflective to actual Americans out of work?
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5 Replies
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The state of the economy in the United States is a complicated and multifaceted topic. With various opinions on its health and direction depending on which metrics are being analyzed and from what political standpoint. Below, you will find descriptions of each economic factor you mentioned, as well as some context:
Bidenomics And The Economy.
Bidenomics: The term Bidenomics refers to Joe Biden’s economic policies. Bidenomics involves investments in infrastructure projects, clean energy initiatives, and social welfare programs. Bidenomics seeks to reduce income inequality. Proponents say these steps have helped stabilize the post-pandemic economy and create jobs for long-term growth.
Effect: Supporters like Kamala Harris believe these moves have contributed towards strong labor markets, higher wages, and substantial investments in renewable energy sectors; however, critics might point out persistent inflation or rising interest rates indicative of unaddressed economic challenges.
Soft Landing
Definition: A soft landing is when the Federal Reserve slows down the economy to tame inflation without causing a recession. Janet Yellen Jerome Powell, amongst other officials, expresses hopefulness that the US can achieve this balance.
Current State: Inflation has cooled off but not reversed. Employment has remained mixed, indicating that America may have a soft landing. Some economists warn that we are yet to see the full effects of rate hikes and are, hence, still at risk of recession.
Unemployment Numbers
Stated Rate: Officially, unemployment stands at around 4.2%, which is relatively low by historical standards.
Accuracy: While it is an important indicator, several things it needs to capture fully are underemployment. Underemployment counts part-time workers who would rather work full-time or have quit looking for work. Thus, according to some estimates, the real unemployment rate could be higher if these were factored in.
Inflation
Reported Rate: Currently running around 3% – much better than the peak of over 8% in 2022.
Perception vs. Reality: Officially, inflation is calculated based on a basket of goods and services. However, most Americans feel it more when shopping for groceries, gas, or housing since prices have increased significantly, creating a disparity between reported rates and consumer experience.
Mortgage Rates
Increase from 2.5% to 7.5%: The Fed’s attempt to control inflation by increasing interest rates has resulted in high mortgage rates.
Effect on the Economy: These higher costs associated with getting a loan to buy houses have made home ownership less affordable, cooling off demand. This has further led to reduced sales volumes and construction activities, thereby affecting wider sections of the economy. Additionally, consumer spending might also be impacted since a bigger portion of disposable incomes will now go towards paying for mortgages instead.
Home Value Increases
More Than Doubled In Price: This has been fueled by low interest rates until recently, coupled with limited supply against high demand. Homeowners’ wealth has grown significantly, though new buyers’ affordability challenges have worsened.
Economic Effects: Property taxes and increased home values have pushed up wealth for a few people. This also means that many more cannot afford houses anymore, perpetuating housing inequality while putting a ceiling on economic mobility.
Unemployment Rate and Workforce Participation:
4.2% Unemployment: However low the unemployment rate may be, it does not show the actual state of all those seeking jobs in this country. The Labor Force Participation Rate (LFPR), the percentage of the working-age population either employed or looking for work, has not recovered since before Covid-19 hit our shores.
Impact: A decline in participation implies that some workers have exited the labor market altogether. Workers exited the labor market due to retirement. Or they are being too discouraged by their prospects, given health concerns for themselves and loved ones. Therefore, it indicates that true misery could exceed mere joblessness, as reported in official numbers alone.
The US economy is currently trying to choose between inflation and stagnation. Bidenomics has greatly contributed to robust employment opportunities and investment in strategic sectors. Challenges still exist, especially regarding housing affordability interest rates within an inflationary context.
Whether we have achieved a soft landing or a recession is imminent will depend largely on how these factors play out over the next several months. For instance, conventional wisdom holds that higher inflation leads sooner rather than later, followed by higher interest rates. All of these factors combined are making homeownership even less affordable. If this were coupled with a prolonged economic downturn, things could get ugly!
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The United States economy is complicated, and people have different ideas about its health. Where it is now and where it’s headed. Based on what they’re looking at and their politics. Here are some of the main economic factors you mentioned, with a little context:
Bidenomics
What they’re saying: Bidonomics is President Joe Biden’s approach to the economy. It involves massive investments in infrastructure, clean energy, and social programs while also trying to reduce income inequality. Advocates argue these steps helped stabilize the economy after COVID-19, creating jobs and supporting long-term growth. Kamala Harris speaks highly of the labor markets this approach has created. Wages are higher than at any point since 1984. In addition, she praised commitments made by companies like BlackRock toward renewable energy projects such as wind farms off Massachusetts’ coastlines or solar installations throughout California. However, some critics say that continuing inflation rates mean we need more than an immediate but imminent adjustment for interest rates.
Soft Landing
What they’re saying: A “soft landing” occurs when the Federal Reserve slows down enough to bring down inflation without causing a recession. Yellen has said she thinks we can achieve this delicate balance. Powell shares her optimism but has been more cautious about whether it’s within reach.
Inflation has decelerated enough that we haven’t gone into recession (because employment remains strong). So America could be in for what economists call a “soft landing.” However, some worry that there will still be hikes before all their effects occur, which could send us right back toward another depression-level danger zone.
Unemployment Numbers
The official jobless rate hovers around 4.2%, which is considered low by historical standards.
Why it matters: Critics say that people working part-time don’t count, and part-time jobs do not because they can’t find full-time jobs. Or those who’ve stopped looking altogether. Most other measures have more unemployed. They also point out there’s still a lot of churn in the labor market, with workers quitting their jobs at near-record rates.
Inflation: It now stands at 3% after peaking above 8% earlier this year.
Reality check: The government measures inflation by examining the prices of a “basket” of selected goods and services. Americans tend to notice it more when they go to buy things like food, gas, and houses, which are getting much more expensive. So, people’s everyday experiences are different from the reported rate.
Mortgage Rates: They went from about 2.5% to over 7.5%.
How it works: When the Federal Reserve raises interest rates, as it did recently to try to tamp down on rising prices, mortgage loan costs jump sharply. That makes buying property more expensive, which means fewer people can qualify for loans or want to buy homes. This lowers the demand for houses overall and slows sales volume, as well as new construction activity within the sector and related industries such as furniture or appliances.
Home Value Increases:
Home prices have gone up over 100%.
What happened: Low supply, strong demand (until recently), and cheap credit have driven up housing prices. This has generated huge wealth gains for owners while making it even harder for new entrants into the market to buy them.
Economic Effects: Increased property values have resulted in higher taxes and more prosperity for some people. However, they have also made housing unaffordable to many, increasing inequality and possibly impeding social mobility.
Unemployment Rate and Workforce Participation:
4.2% Unemployment: This number indicates only those actively seeking work or already employed. It does not account for everyone in the labor market. The labor force participation rate. The share of working-age individuals who are either employed or looking for employment — remains below pre-pandemic levels.
What happened: When fewer people participate in the workforce, there could be various reasons why they have stopped working entirely. For example, they are retiring early due to health issues like disability or illness, becoming discouraged about their job prospects after searching fruitlessly for extended periods or becoming too sick to continue working any longer than necessary, among other causes. This means that there may be more economic pain than what can be seen from simply glancing at unemployment figures alone.
The United States economy teeters between keeping growth alive while reining in inflation. Bidenomics has fostered robustness within the labor market alongside triggering investments into key industries like renewable energy; however, with housing prices still climbing upwards along with interest rates so low, it’s hard not to feel uneasy about potential headwinds caused by rising costs across various sectors, particularly those related to living standards.
Whether America is making a soft landing or headed for another recession will depend mainly on how these variables change over time—especially over the next few months. Indicators such as inflation rates and unemployment percentages offer valuable snapshots yet fail to capture the wider realities within our economy experienced by ordinary citizens daily.
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State of the economy in the United States is in crisis mode
Kamala Harris is absolutely 💯 clueless about the economy. Kamala Harris is one of the dumbest dingbats alive. Numb nuts thinks Bidenomics is the best thing next to slice bread. Forget politics. DO NOT VOTE FOR THIS IDIOT KAMALA HARRIS
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The unemployment rate is not looking too good, folks
Can you trust the current administration with these numbers? ABSOLUTELY 💯 NOT. HOW CAN YOU MISREPRESENT AND UNDERREPORT 818,000 Jobs? The auto industry is getting decimated. Volkswagen is laying off workers. Volkswagen hasn’t had a layoff since the 1990s. Jerome Powell is turning around into reality and forecasting a Recession in 2025. Got a surprise for you People. We are in a Recession. The numbers are lues
Much worse than the data and the RA RA R.A
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Unemployment numbers came out, and it isn’t very good. Bidenomics doesn’t work. It’s a flop.