Know the Facts: US Economy
Transylvania County Democratic Party
February 29, 2024
Often elected leaders stretch the facts to fit a specific narrative. In recent weeks, national and local GOP leaders have bent over backwards to make misleading statements about the US economy. Let’s have some straight talk.
The pandemic hit America especially hard. Our per capita loss of life was greater than in any other advanced democracy. Covid ravaged our economy. Virtually overnight, millions were unemployed. Stimulus bills passed into law under the previous administration helped, but our economy continued to contract, and unemployment remained high. Could the country avoid another great recession or depression?
Immediately upon taking office, the Biden administration secured additional stimulus funding to keep American families afloat while restarting the devastated economy. But the administration had bigger ideas. Rebuilding our economy “from the middle out and bottom up” has been more than just a slogan. The Bipartisan Infrastructure Law created good-paying jobs while repairing roads, bridges, and waterlines, extending broadband, and building infrastructure for electric vehicles. The CHIPS and Science Act promoted scientific research critical to the nation’s security and prosperity while creating manufacturing jobs in the vital semiconductor industry. Finally, the Inflation Reduction Act, the largest climate investment in history, lowered household energy costs and prescription drug prices while creating over 170,000 jobs in the clean energy sector. These initiatives, which passed almost entirely with Democratic votes, have brought $3 billion to North Carolina in infrastructure funding during the Biden administration.
The effects of these bold measures on our economy are now becoming evident. The US has seen higher growth rates and faster drops in post-pandemic inflation than any country in the G7 (Canada, France, Germany, Italy, Japan, the UK, and the US). Our economy is growing at an impressive rate of 3.1%. By comparison, the first three years of Trump's term, before the pandemic, growth was 2.5%. A year ago, economists projected the US would fall into recession, forecasting growth of 0.2%. Most economists have revised their predictions and now consider the ever-elusive “soft landing,” when inflation tapers off without sending a chill through the economy, achievable. The inflation rate, now at 3.4%, is approaching the 2% mark that most economists consider ideal.
Meanwhile, the stock market is setting new records. This is a positive sign that companies are confident where the economy is headed. When stock prices rise, the value of people’s investments also expands. This increased wealth has a positive ripple effect on the economy, as people spend more money, boosting consumer confidence and more economic activity. Consumer confidence has indeed seen a remarkable surge in the past two months, reaching levels not witnessed since the aftermath of the Persian Gulf War in 1991.
The unemployment rate, 6.4% when Biden took office, has been another good-news story. Today, for the first time in more than 50 years, unemployment has remained below 4% for 24 consecutive months. In January, employers added 353,000 jobs, nearly twice what was forecasted. There are more job openings than workers to fill them. Across America, the rate is 3.7%, approaching a 70-year low. In Transylvania County unemployment is on a steady decline reaching another low of 3.2%.
At the same time inflation and unemployment are dropping, wages are growing. Americans at all income levels have seen sizable increases in their overall net worth. Rising minimum wages in states and cities across the US have created higher floors for new and entry-level workers. According to the Bureau of Labor Statistics, average hourly earnings for all employees rose by 5.1% year-over-year in December 2023. This is significantly higher than the pre-pandemic average of around 2.5% and stands as one of the highest annual increases in recent decades.
Across the country, more businesses are hanging a sign over the front door: open for business. In North Carolina, 2023 was on pace to be the second highest year on record for new business creations. Since the pandemic, we have seen a staggering 76% jump in new business creations. And all these companies need workers.
More people are able to get health insurance. Sign-ups for the Affordable Care Act have surged by 80% over the last three years. A record 21 million people enrolled in 2023. In North Carolina, that is over 1 million people through the federal exchange. Families that have health insurance experience increased healthcare access, improved well-being, and a positive impact on the family’s budget.
America is now more energy independent than it has been in decades, further bolstering our economic prospects. The US, now the world’s largest oil producer, generated more oil in 2023 than any country has in any year in history. Notably, renewable energy generation also reached a record high of about 13.4% of total US energy consumption. Solar, hydro and wind power surpassed coal for the first time ever as the second-largest source of electricity generation in the US, accounting for about 22% of total electricity production.
When you talk about the facts, it is clear that the direction we are going is good for all.
Resources:
https://www.washingtonpost.com/health/2024/01/24/obamacare-record-enrollment-biden/
https://www.sosnc.gov/imaging/dime/20240127/1b_74446714_81f3c56931114599a499d94692881a08.pdf
https://www.atlantafed.org/chcs/wage-growth-tracker
https://tradingeconomics.com/united-states/wage-growth
https://news.mit.edu/2021/stock-wealth-spending-employment-0514
https://www.conference-board.org/topics/consumer-confidence
https://insurancenewsnet.com/oarticle/1-million-sign-up-in-nc-for-health-insurance
https://www.bls.gov/charts/employment-situation/civilian-unemployment-rate.htm