There is a lot of good economic news in the US. Unemployment has been falling for months, along with millions of vacancies, and stock market performance should also make investors happy.
But there is one curve that really worries the White House: the one that shows how the prices of goods and services are changing. Because it consistently goes up. More precisely: month after month since Joe Biden took office.
A new peak was announced on Tuesday. Americans spent an average of 8.5 percent more on gas, rent, groceries and other consumer goods in March 2022 than a year earlier, the Labor Department reported.
On average, petrol costs 48 percent more than a year earlier
Refueling alone has become 48 percent more expensive in the country of motorists, and fuel prices have risen by 18.3 percent since February. Fuel costs are responsible for more than half of the inflation rate.
The White House rightly refers again and again to Vladimir Putin’s war of aggression in Ukraine, which is driving up energy prices worldwide (“Putin’s price hike”). And the others, the good economic data.
[Jeden Donnerstag die wichtigsten Entwicklungen aus Amerika direkt ins Postfach – mit dem Newsletter „Washington Weekly“ unserer USA-Korrespondentin Juliane Schäuble. Hier geht es zur kostenlosen Anmeldung.]
The problem is, this argument falls on deaf ears for many. Given the horrendous inflation figures, Americans are not convinced that their president is doing enough to counteract it.
Two-thirds of Americans view Biden’s economic policies negatively
According to a new poll by NBC News, only a third of those polled think Biden is pursuing good economic policies. Two-thirds disagree.
In an election year, this is highly problematic data for the ruling party. The curve of Biden’s approval ratings seems to be sticking to that of inflation, no matter how well he fares on the international scene.
[Alle aktuellen Entwicklungen im Ukraine-Krieg können Sie hier in unserem Newsblog verfolgen.]
Two years of pandemic have exhausted Americans. Yes, the economy is running again, yes, the USA is again seen internationally as a reliable partner.
Inflation eats up salary increases
But the fact that inflation is now eating away at modest increases in payroll accounts is something many Americans are blaming Biden for, after all, he came out promising to heal the country. Even without new Covid variants and wars, that was utopian.
[Alle aktuellen Nachrichten zum russischen Angriff auf die Ukraine bekommen Sie mit der Tagesspiegel-App live auf ihr Handy. Hier für Apple- und Android-Geräte herunterladen]
Now Biden has to show his citizens that he takes their feelings more seriously than before. They want him to give priority to their acute concerns – even the Ukraine crisis has to take a back seat.
Biden’s weekly planning shows that the White House has heard the message. A few hours after the publication of the high inflation figures, the President was expected in Iowa. There he wanted to announce measures to make refueling cheaper
Whether they are enough is uncertain. One thing is certain: seven months before the congressional elections, the US President will be forced to focus more on domestic politics again.
