More than 30 years have passed since James Carville, Bill Clinton's advisor, tired of not being paid enough attention, left a sign on the Democrat's desk with the phrase, "It's the economy, stupid!" After that, Carville convinced Clinton and all his people that the presidential candidate was being perceived as an elite figure removed from the needs of the working class, and that at every possible opportunity, they should talk about the economy and what they could achieve for ordinary Americans if they reached the White House. The phrase became a kind of mantra, and the Democrats managed to win the presidency. According to the polls, the issue for 2024, once again, is the economy, and just as in 1992, the democratic candidate doesn't seem to understand it.
President Biden has been daring enough to present what he has called Bidenomics (his economic policies) as one of the strengths of his campaign, but in most surveys, Americans place the economy as their main concern, so it is clear that things are not going well and that it would be a colossal mistake to campaign on the same policies that millions are loudly complaining about.
Last week, Carville himself spoke on his podcast about the "horrifying" numbers for Democrats - figures that the polls are showing regarding the youth vote, in particular the Hispanic and African-American vote. But also, in a kind of self-criticism of his party, he said: "We are not going to convince those under 30 or 35 years old: 'Oh, we really built a great country for you.' You're looking at this job market... I don't think you're going to buy that."
Carville may warn that, once again, it's about the economy, but the difference now is that Americans have had a taste of Biden's economic policies, and they're a disaster. The strategist honestly recognizes and admits that no one is going to believe that they are "building a great country" with the economic figures we have at this moment. About 30% of Americans cite the economy as their main concern; in most polls, financial problems, such as inflation, take center stage.
Let's analyze the data on the most important economic problems that affect Americans.
1- Inflation
The Biden administration has dared to claim that they have achieved a decrease in inflation. This is perhaps one of the lies that most bothers everyday Americans, who go to the store and see how their salary is equal to less and less and arrive home with fewer goods than before. This Administration dares to say that it reduced inflation because since 2021, when Biden was already president, until today, inflation has gone from 7% to 3.2%, but that in no way means that Americans are doing ok financially, and it definitely doesn't mean that they are better off than when President Donald Trump was in power.
Trump left Biden with inflation of only 1.4%. Right now, it is at 3.2%! So Biden's government saying that it has reduced inflation is a cheap trick that, instead of deceiving, angers many Americans. This variation in inflation means that it costs the average American family $11,400 more per year just to maintain the level of quality of life they had in January 2021.
The prices of dozens of food items have increased more than 50% since 2019, and the matter is undisputable for every family that faces the reality each time they go to the supermarket. For example, cooking oil is up 54%, meat is up 51%, and eggs and chicken are up more than 40%. It is also common that some producers, trying not to raise the price that the consumer sees on the label when purchasing, opt for other measures, such as maintaining the price but reducing the quantity of the product, trying in some way to deceive the consumer.
2- Salaries
President Biden likes to boast that wages have increased during his Administration, which is yet another half-truth, if not a full-fledged lie. While the numbers on paper, for some, may have increased, what people are really interested in is what they can get with that salary. When inflation is high, the number on the check may go up, but that does not translate into greater prosperity for the worker. Since January 2021, when Biden became president, real weekly income - adjusted for inflation - has fallen 4.4%.
3- Is the "American dream" in trouble?
Americans have grown up with the idea that if you work hard you can achieve what you want, unfortunately, with Biden's economy that "American dream" already seems impossible for many. According to a Wall Street Journal survey, only 36% of Americans believe the "American dream" is still true. While 45% believe that the "American dream" was once a reality, it is no longer a reality. These figures are quite worrying because they basically show the discouragement that the American population generally experiences.
What is currently happening in the economy has made aspects that were previously part of the "American dream" unattainable for millions, such as buying a house. 62% of Americans say they live paycheck to paycheck, have no money left to save, and have difficulty making ends meet.
According to a CNBC Your Money financial confidence survey, three-quarters of Americans ( 74%) are stressed about finances. 61% of Americans say inflation contributes to their financial stress, making it the number one financial stressor. And according to a Bankrate survey, 49% of adults have less or no savings compared to last year.
4- Goodbye to the dream of home ownership
A total of 94% of Americans think that owning your own home is part of the "American dream," but 51% of Americans who are not yet homeowners fear that they will never be able to fulfill that dream. Of that, 51% see it as impossible to buy a home, 49% say they do not have the down payment, and 40% say that prices are too high in their area.
The much-promoted Bidenomics has meant that, for many Americans, the dream of owning their own home has disappeared. With the trillions Biden has pumped into the economy, inflation and interest rates have gone through the roof. The interest on 30-year fixed-rate mortgages increased from 2.77% on January 21, 2021, to 6.8% on February 15, 2024. And the national average for a 30-year fixed rate is 7.79%: the highest rate in 23 years!
But it's not just that the loan costs more, but also the houses cost more. The median sales price of existing homes has increased 25% compared to the price three years ago, going from $307,400 in January 2021 to $384,500 in February 2024. It is no coincidence that existing home sales have fallen 34% since President Biden came to the White House, going from 6.6 million to 4.38 million.
But for those who cannot afford to buy a house, there is more bad news: Rental prices have also risen drastically. The average monthly rent for a two-bedroom apartment has increased 20% over the current Administration.
