The stock market’s recovery from Monday’s downturn has eased recession concerns, but underlying economic issues remain. The unemployment rate has been steadily rising since January, with a nearly full percentage point increase from last year. Consumers are struggling with credit card debt, missing payments at near-record rates, and housing affordability remains a significant challenge.
Against this backdrop, the departure of senior adviser Gene Sperling from the White House on Monday was notable. President Joe Biden praised Sperling’s role in implementing the $2 trillion American Rescue Plan, claiming that the economy was in dire straits when Sperling was appointed. However, this assertion is at odds with the facts. By the summer of 2020, the economy was already recovering from the COVID-19 shutdowns, with job growth and economic expansion well underway before Biden took office.
Despite warnings from prominent economists, including Larry Summers and Jason Furman, Biden proceeded with the massive stimulus package, which has contributed to the worst inflation crisis in 40 years. The consequences have been severe, with working people’s real wages still 4% lower than when Biden took office.
While Biden’s economic decisions have been widely criticized, it is worth noting that the situation could have been even more dire under a different administration. Reports suggest that Vice President Kamala Harris had advocated for an even larger $4 trillion stimulus package, including significant handouts to the healthcare industry and secular daycare providers. Biden’s rejection of these proposals may have mitigated the economic damage, but the prospect of a Harris presidency raises concerns about unchecked left-wing policies.
The economic approval ratings for the current administration are historically low, and a Harris presidency could potentially lead to even more severe economic consequences.
