After a successful mid-term election, Joe Biden he is ready to start the second half of his first term in office.
Biden Takes Bumpy Road: Biden’s journey so far has been rocky. His rise to the top job did not go as smoothly as his successor Donald Trump opposed the decision of the election and strongly requested that the decision be annulled.
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What happened just before the inauguration on January 20, 2021, became one of the most difficult periods in the history of American politics, as Trump’s supporters attacked. Capitol Hill and inciting violence. After the dust settled and the president resumed business as usual, it was a smooth first few months amid an economy that began to slowly recover following COVID-19 DISEASE destructive.
Biden’s first big challenge came in the form of a run rising consumer prices. Economic and monetary stimulus, which was given in kind to revive economies suffering from the COVID-19 pandemic, began to raise prices. After falling by 0.3% in May 2020, the annual inflation rate reversed and exceeded the Fed’s 2% target in March 2021. It continued to rise until June 2022.
Source: Bureau Of Labor Statistics
The Fed had to act to restore inflation, although critics criticized the central bank for a slow policy response. The stabilization of monetary policy started in March 2022 but financial markets began to fall, inflation rates and its impact on economic growth.
The Russia-Ukraine war it couldn’t have come at a worse time. The war in Eastern Europe put further pressure on prices, supporting further inflationary pressure.
Here’s a look at how Biden’s leadership compares to that of Trump and his predecessors Barack Obama for different types:
For comparison, Barrack’s first two years of his second term (2013-14) and Trump’s first two years (2017-18) are considered. It is important to note that comparing apples to apples is not possible, due to the different economic and political conditions that each of them experienced during their stay. One can argue that the economic situation is at some level of the policies of the administration.
Economic development: Gross Domestic Product, economic growth, in the first year of Biden’s presidency, benefited from a strong decline of 2.8% amid the pandemic in 2020. When the economy increased in 2021, growth rose to 5.9%, thanks to the stimulus measures.
The reign of his predecessors grew smoothly, in line with a long period of decline. One should remember here that prior to COVID-19, the economy had stabilized at about 2% after emerging from the Great Recession of 2007-2009.
Source: A self-generated chart using data from the Bureau Of Economic Analysts
*2022 growth is a Conference Board estimate as official numbers for the full year are not available
Market Performance: Biden was unlucky enough to be caught up in the many headwinds that pressured the stock market. The stock market is often considered to be a major part of a country’s economy, as it reflects the wealth of companies in all sectors that often act as a source of income.
The post-COVID-19 recovery seen in the market took the US to a record high in 2022 and the decline was steep, reducing the average return on investment. The value of the S&P500 for two years.
The SPDR S&P 500 ETF OFFERSan exchange-traded fund that tracks the performance of the S&P 500 Index, rose 5.3% in two years under Biden.
Obama’s returns for two years in his second term were better than those of his two successors.
Source: Automatic chart
Popularity Level: Biden began his presidency on a clear note of approval. Immediately after his inauguration, he received an approval rating of 53%, according to data compiled from a FiveThirtyEight poll. By August 2021, the number of people who approved of him was less than those who did not approve of him. At the end of 2022, the share was 51.3% to 43.3% against him.
The comparison with Mr. Trump shows that Mr. Biden had a better popularity in the first two years.
Source: Thirty eight
FiveThirtyEight’s comparison of Biden Vs. Obama used that combination in the first two years of Obama’s administration. It shows that Obama has enjoyed better approval ratings than Biden throughout this period.
Source: Thirty eight
Way Ahead Risk-Laden: The U.S. economy faces the prospect of a recession and uncertainty over the proposed fiscal deficit continues. Global threats are on the rise, the Russia-Ukraine war continues and relations with China continue to be warm, with threats looming at every turn.
In addition, in the center, the Democrats have handed control of the House to the Republicans, which could mean a great deal of ideological conflict. One area where Biden won was several pieces of legislation he passed, capitalizing on the advantage his party had in Congress in his first two years.
Biden should be facing difficulties in the second half of his term and it remains to be seen how he and his party manage the economy and the country during this difficult time.
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