The Biden-Harris Administration continued to take the message of Bidenomics directly to the American people this week—highlighting how the President's plan to grow the economy from the middle out and bottom up is fueling economic growth, lowering costs for hardworking families, and powering a manufacturing boom all across America. This week also brought news that the economy grew at a solid 2.4% rate last quarter while inflation fell significantly—further evidence that Bidenomics is delivering results for the American people.
Bidenomics In the States
On Monday, Vice President Harris spoke at the UnidosUS 2023 Annual Conference where she highlighted that more small businesses have been created in the last two years than any other two-year period in history and the growth is being led by Latinas, who are the fastest-growing group of small-business owners in America. Also on Monday, the Environmental Protection Agency announced nearly $60 million in funding to remove lead in drinking water in schools and child care facilities, funded by the Bipartisan Infrastructure Law.
On Wednesday, the White House released the Spanish language version of invest.gov – invertir.gov – showing how Bidenomics and the Investing in America agenda is reaching every community across the country. Seven major global automakers – BMW Group, General Motors, Honda, Hyundai, Kia, Mercedes-Benz Group, Stellantis NV – announced that they will create a new joint venture that will install 30,000 new EV charging stations. Their commitment to build a reliable, Made in America EV charging network is proof that President Biden's Investing in America agenda is spurring public and private investment to help accelerate the transition to electric vehicles, boost domestic manufacturing, strengthen supply chains, and create good-paying jobs.
On Thursday, the Department of Energy opened up the application process for states to access over $8 billion in funding to develop their own Home Energy Rebate programs to help American families lower their home energy costs.
On Friday, President Biden traveled to Maine and signed an executive order to support American manufacturing and help ensure more products that are invented in America are Made in America.
Bidenomics In the News
Reuters: Biden touts 'Bidenomics' jobs in Maine as GDP grows, inflation falls
[Trevor Hunnicutt, Jarrett Renshaw, 7/28/23]
President Joe Biden visited a Republican district in Maine on Friday, his first trip to the state since winning the White House, laying out his economic case for a second term at a woman-owned local factory and celebrating new jobs in the state. "Workers who have been left behind for decades aren't just finding jobs, more jobs, they're finding better jobs, with higher pay," Biden said. Maine, alone, has seen 28,700 new jobs since the pandemic, he said, speaking at Auburn Manufacturing Inc, a company that produces heat- and fire-resistant fabrics primarily with domestic-made materials.
Bloomberg: US Growth Accelerates to 2.4% on Resilient Consumers, Companies
[Reade Pickert, 7/27/23]
"Growth is outpacing expectations even as the monetary policy stance has become restrictive," Rubeela Farooqi, chief US economist at High Frequency Economics, said in a note. "A strong household sector that continues to benefit from positive job growth and rising real incomes should keep growth on a positive trajectory this year." […] Nonresidential fixed investment increased at the fastest pace in more than a year. Business spending on structures continued to grow at a breakneck pace, bolstered by recent efforts to shore up domestic factory production. The Biden administration championed a series of bills — the Infrastructure Investment and Jobs Act, the Inflation Reduction Act and CHIPS Act — that provide both direct funding and tax incentives for private companies to invest in areas like semiconductors and electric vehicles.
Fortune: The economy just won't stop growing—U.S. GDP shot up again in the second quarter
[Paul Weisman/AP, 7/27/23]
The U.S. economy surprisingly accelerated to a 2.4% annual growth rate from April through June, showing continued resilience in the face of steadily higher interest rates resulting from the Federal Reserve's 16-month-long fight to bring down inflation. Thursday's estimate from the Commerce Department indicated that the gross domestic product — the economy's total output of goods and services — picked up from the 2% growth rate in the January-March quarter. Last quarter's expansion was well above the 1.5% annual rate that economists had forecast. […] By any measure, the American job market has shown itself to be remarkably strong. At 3.6% in June, the unemployment rate hovers just above a five-decade low. […] Higher pay and job security are giving Americans the confidence and financial wherewithal to keep shopping.
Bangor Daily News: Joe Biden to sign 'make it here' executive order on Maine trip
[Michael Shepherd, 07/28/23]
In Maine on Friday, President Joe Biden will sign an executive order aimed at boosting domestic manufacturing of new inventions, a White House official said late Thursday. […] The "Invent it Here, Make it Here" order that the president will sign on Friday attempts to build on that by ordering agencies to use existing power to put more government money behind supporting domestic manufacturing of emerging technologies and raising standards for government purchasing of products that cannot be made domestically.
Washington Post: Federal infrastructure, clean energy spending is powering the economy and lifting GDP
[Abha Bhattarai, 07/28/23]
A surge in government funding and related private investment is beginning to make its way to businesses and communities across the country, building electric vehicles, new bridges, airport upgrades and a host of other infrastructure and green energy projects that are juicing the economy — just when it needs it most. The federal government has announced some $299 billion and has spurred another $503 billion in business investment that is providing a surprisingly quick and robust boost to the U.S. economy.
Axios: South, Mountain West see manufacturing boom under Biden
[Hans Nichols, 7/23/2023]
A manufacturing boom has swept across the country in President Biden's 2½ years in office, with the South and Mountain West — including several red states — having especially strong growth, according to Bureau of Labor Statistics data. Why it matters: The U.S. economy has added some 800,000 manufacturing jobs nationwide, a figure Biden hopes will boost his claim to have delivered on his promise to be a president — and create jobs — for all Americans.
Voz de America: Biden says Bidenomics is working after economic reports
[Staff, 7/27/23]
President Joe Biden reacted jubilantly Thursday to reports that the U.S. economy grew in the second quarter and said his economic policies are working. "The economy is growing and we are lowering costs for families. That's Bidenomics at work," he said in a statement. Biden has recently been promoting his economic program, which he has called Bidenomics, as part of his campaign for re-election in 2024 and used Thursday's reports to give it a new boost.
Reuters: Automakers EV charging deal is 'an important step forward,' White House says [Staff, 7/26/23] – National
A new automaker deal to build an electric vehicle charging network in the United States will benefit the economy and the climate, the White House said on Wednesday. "You have these seven major automakers coming together," Karine Jean-Pierre said. "This is an important step forward as we talk about how to deal with this climate crisis," she said.
The Pueblo Chieftain: Another $100 million in federal funds set to flow into Arkansas Valley Conduit [Anna Lynn Winfrey, 7/27/23] – Colorado
The Bipartisan Infrastructure Act has been the largest source of federal funding for the project so far. Bennet and Hickenlooper also secured $10.1 million for the project in last year's federal spending bill and $10.5 million the year before, according to a joint press release. Federal dollars are backing the construction of trunk lines, but they aren't the only source of funding for the conduit. Woodka said that there is approximately $30 million in outside grants secured for the spur and delivery lines, which the federal government isn't paying for. That leaves approximately $35 million left for the 39 local communities to cover, but that amount could be reduced over time.
Atlanta Journal-Constitution: Georgia gets $2.4 million for lead control in schools and child care centers [Toni Odejimi, 7/26/23]
The Biden administration will put $58 million into reducing lead in schools and child care facilities, with Georgia receiving about $2.4 million. The funding, announced this week, is coming from the Water Infrastructure Improvements for the Nation Act (WIIN), which allows states to use the funds to help with removing lead from drinking water at schools. It comes out of Biden's U.S. Lead Pipe and Paint Plan, which plans to replace lead pipes, lead paint and clean up drinking water. "Every kid, really every person in America, deserves to have clean air and to drink clean water," Mitch Landrieu, senior adviser to the president, said in a telephone interview.
Axios: Jobs boom at the state level
[Courtenay Brown, 7/24/23]
The job market is humming nationally, but zoom in and you get another extraordinary snapshot: Many states across the country are experiencing all-time lows in unemployment. Why it matters: Labor market boom times are supporting local economies, with parts of the country experiencing tighter conditions than some residents have seen in their lifetimes. By the numbers: From Pennsylvania to Washington to Alabama, 17 states saw jobless rates hit new record lows or hold at a previously notched low in June, according to the Bureau of Labor Statistics.
CNBC: First Solar announces fifth U.S. factory as Inflation Reduction Act fuels domestic manufacturing
[Pippa Stevens, 7/27/23']
First Solar, the nation's largest solar panel manufacturer, announced Thursday that it will build its fifth U.S. factory as the Inflation Reduction Act spurs a domestic manufacturing boom. The company said it will invest as much as $1.1 billion in the new factory, the location of which has yet to be decided.
Associated Press: One year old, US climate law is already turbocharging clean energy technology
[Isabella O'Malley and Michael Phillis, 7/23/23]
On August 16, after the hottest June ever recorded and a scorching July, America's long-sought response to climate change, the Inflation Reduction Act, turns one year old. In less than a year it has prompted investment in a massive buildout of battery and EV manufacturing across the states. Nearly 80 major clean energy manufacturing facilities have been announced, an investment equal to the previous seven years combined, according to the American Clean Power Association. "It seems like every week there's a new factory facility somewhere" being announced, said Jesse Jenkins, a professor at Princeton and leader of the REPEAT Project which has been deeply involved in analysis of the law.
Axios: No matter where you look, consumer confidence is up
[Kate Marino, 7/26/23]
The rally in consumer sentiment — like the rally in the stock market — is looking pretty broad. The big picture: This upswing has been building all year as inflation cooled. It's visible across income groups — and across different national surveys measuring consumer attitudes.
Spectrum: Morgan Stanley credits 'Bidenomics' with economic growth
[Maddie Gannon, 7/28/23]
The acclaim for Biden's economic plan came with Morgan Stanley's announcement that it expected to boost its growth forecast for the year. The major investment bank and financial services company now projects 1.9% gross domestic product growth in the first half of this year as opposed to the previous estimate of 0.5%. Reuters reported Morgan Stanley expects GDP will rise 1.3% on average in 2023. In a research note released last week, CNBC reported Morgan Stanley's chief U.S. economist Ellen Zentner wrote the Infrastructure Investment and Jobs Act – legislation Biden signed in Nov. 2021 that was a major piece of his agenda – is creating a "boom" in infrastructure and strengthening manufacturing construction.
Bidenomics on the Airwaves
MSNBC: Andrea Mitchell Reports
ANDREA MITCHELL: I want to ask you about what your read is on the Fed's actions, the rate hikes that could be coming down the pike, and whether you are afraid that might tip us over now that for the first time more economists are saying we may avoid the recession and have that long sought after and very rare soft landing.
LAEL BRAINARD: The data we have gotten yesterday and today is very consistent with a story that growth is up and inflation is down. If you look at inflation, it's down to 3%. It's the lowest it has been since march of 2021. Growth was reported yesterday to be 2.4%, also beating expectations. So that combination, I think, is very encouraging.
LANDREIU: Getting lead out the water which causes brain damages, is top of the list. It's also true that there's substantial amounts of money to make sure that the buses that the kids are riding on are clean energy buses and they don't have to suck exhaust. And making sure that the filtration systems are working -it's all about giving our kids the best.
BERNSTEIN: In fact, this kind of building factories contributed more than it had in a single quarter in over 40 years. That links directly to the investments that this president has legislated in the interest of a reversing decades of disinvestments in America and standing up some key sectors in our economy.
BOUSHEY: What we've been seeing is that, you know, consumers continue to be a strong part of our economy. You know that consumer spending is about seven 70% of overall output in the United States. One of the trends that we saw during the crisis, during the pandemic recession, is that people started buying more goods instead of services. We've started to see a shift in that come back down to something that might have looked like what it did pre-pandemic.
MSNBC: Deadline: White House
Nicolle Wallace: With Republicans in a mad dash to the bottom of US Politics, President Joe Biden's bet is that voters will be focused on the country's steadily improving economy. With news this week that the Bidenomics, Biden's formula for strong economic growth from the bottom up, is not only driving a surge in the US economy and a boom in large-scale infrastructure, it's so much greater than even the experts and economic stuff expected it to be. Morgan Stanley is crediting Biden's infrastructure and jobs act with forcing that bank to make a, quote, sizable upward revision to its US gross domestic product estimates and the top US equity strategist admitted to clients this week, according to Market Watch, that the rally for growth has, quote, gone further and persisted longer than we anticipated. We were wrong. End quote. The Biden White House telling CNBC this, quote, this report confirms what we long said. Our strong and resilient economy is Bidenomics in action. The President's economic agenda is spurring investments in manufacturing and infrastructure that are creating jobs and supporting workers.
MSNBC: Morning Joe
JONATHON LEMIRE: So Bidenomics is the mantra around there right now. And the President's schedule is dotted with events talking about economic policy. He's got one up in Maine later today. Of course, the economy is probably the biggest factor in deciding whether an incumbent gets reelected. But there are risks and rewards, by throwing their arms around the economy like President Biden is. Is the gamble worth taking?
JOHN HEILEMANN: Yeah. These economic numbers that we've had over the last couple weeks are just a god send for the Biden Administration. We're having a soft landing. I mean, this is like a goldilocks moment that a lot of very smart people thought was impossible. Now the Fed says we've taken recession out of our forecast. 2.4% growth is an excellent number. You compare the United States to any of the developed countries coming out of the pandemic, and we look great. Unemployment at 50-year lows. These are good economic numbers. As long as that inflation figure keeps coming down and as long as income continues to rise faster than prices, which has happened over the last four months in a row with no particular end in sight, I think there is time for that perception about the economy to change. President Biden is trying to change it, because he's out there almost every day touting Bidenomics, making that a mantra. Again, that's a big part of politics, repetition, emphasis. That's what we're going to see and hear, I think, over the months to come.
Bidenomics Resources
Fact Sheet: Statement from President Joe Biden on Second Quarter GDP Report
Fact Sheet: Biden-Harris Administration Announces Actions to Lower Housing Costs and Boost Supply
Joseph R. Biden, Jr., ICYMI: This Week in Bidenomics Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/363744