Biden’s Inflation Challenge: How He Is Trying to Convince Voters of His Success

President Joe Biden has achieved a significant improvement in the inflation situation, but he still faces a difficult task of persuading voters that he has helped fix the problem that hurt his popularity and his chances of reelection in the past.

The latest figures from the Bureau of Labor Statistics showed that inflation has eased considerably, reaching the Federal Reserve’s 2% target in December 2023. The consumer price index (CPI), which measures the changes in the cost of living for the average consumer, rose by 2% over the past year, down from 7.7% in October 2022. The producer price index (PPI), which measures the changes in the prices received by domestic producers of goods and services, increased by only 0.7% over the same period, down from 9.6% in October 2022.

These data indicate that the inflationary pressures that plagued the U.S. economy in 2021 and 2022, as the country emerged from the pandemic and faced supply chain disruptions, labor shortages, and surging demand, have largely subsided. The Federal Reserve, the central bank of the U.S., has played a key role in controlling inflation by raising its benchmark interest rate four times in 2023, from 0.25% to 1.25%, and by tapering its bond-buying program, which injected money into the economy to support the recovery.

Biden’s aides say he is determined to do more to lower inflation, which damaged his approval ratings and his prospects of winning a second term in 2021 and 2022. They point to the improvement in consumer sentiment, which rose to 83.5 in December 2023, up from 66.8 in October 2022, according to the University of Michigan’s survey. They also highlight the strength of the economic recovery, which grew by 4.1% in 2023, up from 2.5% in 2022, according to the Bureau of Economic Analysis.

“We’ve been working hard to address inflation from every angle,” said White House chief of staff Jeff Zients. “We’ve made progress on increasing the supply of goods, lowering the cost of prescription drugs, expanding the child tax credit, and passing the bipartisan infrastructure bill, which will create millions of good-paying jobs and make our economy more competitive and resilient.”

However, Biden still faces skepticism from voters who may not feel the benefits of lower inflation or may hold him responsible for the price surge that occurred in 2021 and 2022. The costs of essential items such as gasoline and eggs remain higher than before Biden took office, and some consumers may have adjusted their expectations and behavior to cope with higher prices. According to a poll by the Associated Press-NORC Center for Public Affairs Research, 59% of Americans disapprove of Biden’s handling of inflation, and 51% say the economy is in poor shape.

Republicans have seized on the inflation issue to attack Biden’s policies and leadership. Former President Donald Trump has claimed that inflation is destroying the country and that he would bring down energy prices if he returned to power. GOP lawmakers have opposed Biden’s Build Back Better agenda, which aims to invest $1.75 trillion in infrastructure, social programs, and climate action, and have argued that it would worsen inflation and increase the national debt.

Biden has tried to counter these arguments by emphasizing his efforts to boost supply chains, lower drug prices, and pass his Build Back Better agenda, which he says will reduce costs for families and create jobs. He has also defended the Fed’s independence and supported its monetary policy, which he says will keep inflation under control and ensure long-term economic stability.

Biden hopes that by the time of the November election, voters will recognize his role in bringing inflation under control and restoring economic growth. He also hopes that his agenda will pass the Congress, where it faces resistance from some moderate Democrats and unanimous opposition from Republicans. He believes that his agenda will not only help the economy, but also address the long-term challenges of inequality, poverty, and climate change.

As an ending note, Biden has made significant progress on tackling inflation, but he faces a challenge in convincing voters of his achievements. Inflation is a complex and multifaceted phenomenon, with diverse and significant implications for American households. Inflation can reduce the purchasing power, increase the hardship, and change the behavior of households, as well as affect the social and political dynamics of the country. Therefore, it is imperative that the government and the central bank take appropriate and timely actions to mitigate the inflation problem, and communicate clearly and transparently with the public about the causes, consequences, and solutions of inflation.

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