Assessing Bidenomics: Policies, Impact, and Public Perception in 2024

Defining Bidenomics and Its Core Objectives

Bidenomics refers to the set of economic policies and strategies championed by President Joe Biden and his administration, with a focus on job growth, wage increases, and investment in American manufacturing. The term emerged as a way to brand the administration’s approach to economic recovery after the pandemic, especially as inflation and supply chain issues challenged the country. Bidenomics does not include policies from previous administrations or unrelated fiscal measures. The scope covers federal actions like the Inflation Reduction Act, labor market interventions, and efforts to manage inflation and unemployment. It does not extend to state-level economic programs or global economic trends outside the direct influence of U.S. policy. The primary audience includes policymakers, economists, voters considering the 2024 election, and workers affected by wage and job market changes. This topic matters because economic perceptions often drive election outcomes, and the Biden administration has tried to make the case that its policies are working, even as public approval remains low. In July 2022, only 28 percent of Americans approved of Biden’s handling of the economy, showing the challenge of shifting public opinion even as conditions change ^[1].

Public Expectations and Desired Economic Outcomes

Americans expect clear, measurable improvements when evaluating economic policy, and Bidenomics aims to deliver outcomes like rising real wages, low unemployment, and reduced inflation. In recent months, real wages started rising faster than inflation, and the labor market stayed strong, with unemployment at 3.8 percent ^[2]. Wages also increased, and consumer spending remained healthy, both key indicators for economic well-being. The Inflation Reduction Act spurred new investment in manufacturing, which the White House highlighted as a benefit of its approach ^[3]. Despite these positive trends, public approval of Biden’s economic management only rose to 36 percent in the latest Quinnipiac poll ^[4]. Key performance indicators for Bidenomics include job creation, wage growth, inflation rates, and consumer spending. Benchmarks like the personal savings rate and mortgage interest rates also play a role, with the savings rate now near an all-time low ^[5]. These outcomes show a mixed picture: while some metrics improve, others raise concerns for voters.

Challenges and Skepticism Surrounding Bidenomics

Several root causes explain why Bidenomics faces skepticism despite positive economic data. Inflation soared in 2021 and 2022, peaking at 9.1 percent in June 2022, which left a strong negative impression on many Americans ^[6]. Gas prices also hit over $5 per gallon that month, making daily life more expensive for millions ^[7]. The gross domestic product decreased by 0.6 percent in the second quarter of 2022, fueling fears of a recession ^[8]. These shocks created a lasting sense of economic instability, even as recent data improved. Experts point out that economic perceptions often lag behind actual improvements, and negative experiences like high inflation or job losses can shape opinions for years. The start of student loan repayments will also reduce disposable income for millions, adding to the sense of financial pressure ^[9]. These factors combine to make it difficult for the administration to shift public sentiment quickly.

Key Strategies and Policy Initiatives of Bidenomics

Bidenomics solutions focus on several fronts: boosting job growth, raising wages, curbing inflation, and investing in key industries. The administration used the Inflation Reduction Act to encourage manufacturing investment, aiming to create high-quality jobs and strengthen supply chains ^[10]. Policymakers also worked to balance inflation and unemployment, with the Federal Reserve raising interest rates to cool price increases without causing mass layoffs ^[11]. The White House promoted these efforts as a path to a ‘soft landing,’ where the economy returns to pre-pandemic stability without a recession ^[12]. Officials also highlighted worker-friendly conditions, such as rising real wages and strong consumer spending. The administration’s approach includes monitoring economic indicators closely and adjusting policies as needed, especially as new data emerges. These solutions target both immediate concerns, like inflation, and long-term goals, such as practical job growth and industrial competitiveness.

Implementation Through Fiscal and Monetary Coordination

To implement Bidenomics, policymakers coordinated fiscal and monetary actions. The White House promoted the Inflation Reduction Act to drive investment in manufacturing and green energy, while the Federal Reserve adjusted interest rates to manage inflation ^[13]. Agencies tracked key indicators like wage growth, unemployment, and consumer spending to guide decisions. Teams communicated policy changes through speeches and public messaging, aiming to build confidence in the economic recovery. The administration also responded to emerging challenges, such as the resumption of student loan payments, by monitoring their impact on household finances ^[14]. Officials worked with Congress to pass legislation and secure funding for infrastructure and industrial projects, often highlighting specific job creation numbers and investment totals. This hands-on approach required constant adjustment as new data arrived, with leaders weighing trade-offs between inflation control and job preservation.

Measuring Economic Progress and Policy Success

Teams measure the success of Bidenomics by tracking several key metrics: unemployment rate, wage growth, inflation rate, consumer spending, and investment levels in manufacturing. For example, unemployment stood at 3.8 percent, and real wages started to outpace inflation, both positive signs ^[15]. Policymakers also watched the personal savings rate, which dropped close to an all-time low, signaling potential stress for households ^[16]. The Federal Reserve’s ongoing rate hikes aimed to keep inflation in check, but rising mortgage and interest rates created new challenges for homebuyers and borrowers ^[17]. Analysts compared current data to pre-pandemic benchmarks to assess progress toward a ‘soft landing.’ Regular polling, such as the Quinnipiac survey, provided feedback on public perception, which often lagged behind economic improvements ^[18]. These measurements allowed officials to adjust strategies and communicate results to voters and stakeholders.

Real-World Outcomes and Limitations of Bidenomics

Real-world examples show both the strengths and limits of Bidenomics. The Inflation Reduction Act led to new manufacturing investments, which the White House cited as proof of policy success ^[19]. Unemployment stayed low at 3.8 percent, and real wages began to rise faster than inflation, giving many workers a financial boost ^[20]. Still, the personal savings rate dropped to near record lows, and mortgage rates climbed, making it harder for some families to buy homes or save for the future ^[21]. The restart of student loan payments in 2023 created new financial pressures for millions, showing how policy changes can have ripple effects ^[22]. Public opinion polls, such as the Quinnipiac survey, revealed that even with these improvements, only 36 percent of Americans approved of Biden’s handling of the economy, highlighting the gap between data and perception ^[23]. These examples illustrate the complex, sometimes contradictory impact of economic policy on real people.