On October 30, 2024, the US Treasury Secretary Janet Yellen once again explained the economic record of the Biden administration, stating that Americans are living better today than they were at the beginning of President Joe Biden’s term.
As the US election day on November 5 approaches, the US Treasury Department released a statement made by Yellen at a bank conference, where she praised the strong economic growth, historically low unemployment rates, decreasing inflation, and rising wages in the United States.
After the outbreak of the COVID-19 pandemic, high inflation has been troubling many voters. In the seven key states determining the outcome of this election, voters are looking beyond traditional economic indicators and focusing on the higher prices they are paying for essential goods, leading them to lean towards supporting the Republican candidate, Donald Trump.
A Reuters/Ipsos poll this month showed that 61% of battleground state voters believe the economy is heading in the wrong direction, with 68% indicating that the cost of living is also on the wrong path.
Despite the strong performance of the US economy, driving global economic growth and outperforming competitors, in surveys related to the economy, former President Trump has consistently scored higher than his Democratic opponent and current Vice President, Kamala Harris.
One argument frequently raised by Trump at his rallies is that Americans are worse off now than they were four years ago. His most common question is, “Are you better off than you were four years ago?”
Yellen has repeatedly praised the Biden administration for pushing for billions of dollars of investments in clean energy, infrastructure, and semiconductor legislation. While speaking to the American Bankers Association, she tried to remind voters how dire the situation was in early 2021.
Yellen said, “When President Biden and Vice President Harris took office, tens of thousands of Americans were dying from COVID-19 every day, the unemployment rate was 50% higher than it is now. In contrast, we now see a strong economy, driven by robust consumer spending and steady business investment, leading to strong economic growth and a significant decrease in inflation from its peak.”
More positive data is expected to be released this week, with the GDP growth rate for the third quarter, set to be announced on Wednesday, expected to exceed 3%. However, a strike by 33,000 Boeing employees is expected to restrain job growth data.
Nevertheless, Yellen admitted that more work needs to be done to lower the cost of living, but she noted that the pace of wage increases has outpaced the pace of price increases.
She stated, “This means that compared to before the pandemic, the average American can afford more goods and services, and Americans are starting new businesses at a record pace, reflecting people’s optimistic outlook on the economy.”
(This article referenced reporting from Reuters)