After a rough two years marked by the coronavirus pandemic, economic turbulence, and now increasing gasoline prices that are smashing family budgets, President Joe Biden stated Thursday that the American people are “truly, really depressed.” However, he emphasized that a recession was “not inevitable” and expressed optimism that the country would gain confidence.
The president underlined the wrecked economy he inherited and the enduring psychological wounds produced by a pandemic that disturbed people’s sense of identity in a 30-minute Oval Office interview with reporters. He scoffed at Republican lawmakers’ accusations that last year’s COVID-19 aid package was solely to blame for the country’s 40-year high inflation rate, calling the claim “bizarre.”
“People are very, terribly sad,” Biden stated of the general American mood.
“In America, their need for mental health has soared because people have seen everything turned upside down,” Biden remarked. “Everything they’ve banked on upsetting has happened.” But the majority of it is a result of what happened during, and as a result of, the COVID crisis.”
That pessimism has spilled over into the economy, where record gas prices and persistent inflation have put Democrats’ chances of retaining control of the House and Senate in the November elections in jeopardy. Biden addressed economists’ fears that battling inflation could push the US into a recession.
“First and foremost, it is not unavoidable,” he stated. “Secondly, we have a better chance than any other country in the world of overcoming inflation.”
When it came to the reasons for inflation, Biden was a little defensive. “If it’s my responsibility, why is inflation higher in every other big industrial country around the world?” Did you ask yourself that question? “I’m not acting-wise,” he said.
The president’s statement appeared to be about global inflation growing, rather than whether other countries’ rates were higher than the United States. According to the Organization for Economic Cooperation and Development, annual inflation in Japan has climbed in recent months but remains at a yearly rate of 2.4 percent.
With the 3.6 percent unemployment rate and America’s relative strength in the world, the president expressed optimism.
But restoring trust has eluded Biden, whose approval numbers have been steadily declining as he loses Democratic backing and has little evidence to suggest that he can return Washington to a state of bipartisan normalcy.
President Biden’s Oval Office is adorned with images of leaders who have faced national crises, and the president acknowledged that there are parallels to his own position. A portrait of Franklin Delano Roosevelt stands above his fireplace, occupying a prominent position because historian Jon Meacham told Biden that no president had ever entered office with the economy in such a bad state. There’s also a portrait of Abraham Lincoln, who took office in a country that was deeply divided and on the edge of civil war.
However, Biden’s solution is similar to former President Jimmy Carter’s prognosis in 1979, when the US economy was devastated by stagflation. Carter stated at the time that the United States was experiencing a “confidence crisis,” and that “the erosion of our confidence in the future threatens to destroy the social and political fabric of America.”
The president stated that he wants the United States to have greater vigor, bravery, and courage.
“Have faith,” Biden advised. “Because I am self-assured, we are in a better position than any other country on the planet to dominate the second quarter of the twenty-first century.”
Biden’s pessimistic appraisal of the American psyche comes as people have grown dissatisfied with his job performance and the country’s direction. According to a May poll from NORC Center for Public Research, only 39% of U.S. adults approve of Biden’s job as president, a drop from already poor numbers a month earlier.
Overall, only about 2 in 10 individuals believe the United States is on the right track or that the economy is doing well, compared to roughly 3 in 10 in April. The decline was concentrated among Democrats, with only 33% of those in the president’s party believing the country is on the right track.
Republican social policies, according to Biden, are leading to public anxiety. He indicated that if the Supreme Court overturns Roe v. Wade, removing national protections for abortion access, GOP lawmakers could face consequences in the midterm elections. The president stated that voters will assess the Republican Party’s “failure to be willing” to deal with “the country’s basic socioeconomic concerns.”
The president outlined some of the difficult decisions he’s had to make, including standing up to Russian President Vladimir Putin for invading Ukraine in February, despite the fact that tough sanctions imposed as a result of the conflict have caused gas prices to skyrocket, posing a political risk for Biden in an election year. He urged oil corporations to consider the world’s immediate needs and boost output.
When asked why he imposed the financial sanctions against Russia, which have wreaked havoc on global food and energy markets, Biden said he took his decision as commander in chief, not as a politician thinking about elections.
He declared, “I am the President of the United States.” “It isn’t a question of my political survival.” It’s all about the country’s best interests. I’m not kidding. I’m not kidding. So, what transpires? What if the most powerful entity, NATO, the organizational framework we put in place, turned its back on Russian aggression?”
Biden conjured up the prospect of instability in Europe if an unhindered Russia continued to push farther into the continent, China was emboldened to take over Taiwan, and North Korea’s nuclear goals grew even more aggressive.
Biden reiterated his claim that major oil firms have reaped the benefits of higher prices without ramping up output as much as they should. He stated that businesses must consider the entire planet in the short term, not just their shareholders.
He advised, “Don’t only reward yourself.”
Consumer prices have risen by 8.6% in the last year, the highest increase in more than 40 years. Last year’s $1.9 trillion coronavirus treatment plan, according to Republican lawmakers, sparked a spiral of price rises.
The president said there was “zero evidence” for such an argument, noting that other nations’ economies reopened and people were vaccinated, resulting in increased pricing. Nonetheless, Biden agreed with Treasury Secretary Janet Yellen that the spending had a minimal inflationary impact.
He stated, “You could dispute if it had a marginal, little impact on inflation.” “I don’t believe so. And the majority of economists do not believe it did. The notion that it produced inflation, on the other hand, is ludicrous.”
Nonetheless, Biden faces a conundrum as a result of excessive inflation. He made it a priority to restore millions of jobs, and the unemployment rate is now near pre-pandemic levels. The Federal Reserve raised its benchmark interest rate on Wednesday with the aim of slowing the economy and lowering inflation to its target of 2%.
Financial markets have sunk as a result of the Fed’s tightening, prompting many experts to predict a possible recession next year. The president urged the American people to be patient.
He said, “They shouldn’t believe a warning.” “All they should say is, ‘Let’s see.'” Let’s see who is right.'”
After an earlier iteration last year failed to pass a 50-50 Senate, the president is still seeking to push his domestic agenda through Congress. Biden stated, “I believe I have the votes” to reduce prescription drug prices, lower utility bills for families through tax incentives, and impose a 15% minimum tax on companies. His initiatives, he claimed, would help many Americans save money, albeit they would be pared back from prior plans for an increased child tax credit, universal pre-kindergarten, and other programs.
“God willing,” Biden remarked, “I’m going to be able to get the ability to pay for prescription drugs.” “There are a variety of ways to reduce the cost of living for working people.”
“I can’t get it all done,” Biden admitted, acknowledging the political constraints he faces.
