This Week in Bidenomics: Stealth Slowdown

As the U.S. economy continues to navigate the post-pandemic landscape, the Biden administration's economic policies, collectively known as Bidenomics, have been a subject of intense scrutiny. This week, we take a closer look at the stealth slowdown narrative and its implications for investors and the broader economy.



The stealth slowdown narrative suggests that the U.S. economy may not be as robust as initially perceived, despite the strong job growth and GDP expansion under Bidenomics. While the unemployment rate has fallen to a near-record low of 3.4%, and the economy has added over 12 million jobs since Biden took office, the pace of job growth has slowed recently. This slowdown, combined with other factors like inflation and interest rate hikes, contributes to the stealth slowdown narrative, indicating that the economic recovery may not be as strong or sustainable as initially thought.



One of the key indicators of the stealth slowdown is the slowdown in GDP growth. After expanding at a robust 5.7% in 2021, the U.S. economy grew at a slower pace of 2.1% in 2022. This slowdown reflects a global economic slowdown and higher interest rates, which have put pressure on businesses and consumers alike.

Another indicator of the stealth slowdown is the rise in inflation, which has increased by 18.9% since 2019. While the Biden administration has taken steps to address inflation, such as the Inflation Reduction Act, inflation remains a challenge, with the consumer price index (CPI) increasing by 3.5% in March 2024. The stealth slowdown narrative suggests that the economy may be cooling off, as consumers grapple with higher costs and job insecurity.



The stealth slowdown narrative also has implications for consumer confidence and spending. According to the Conference Board, the consumer confidence index fell to 102.3 in April 2024, its lowest level since July 2022, marking a 12.5% decrease from March 2024. This decline coincides with a 3.5% inflation rate in March 2024, the highest in six months, and a 3.9% unemployment rate in April 2024, up from 3.8% in March 2024. These trends suggest that consumers are becoming more cautious about their spending, as they face higher costs and job insecurity.

In conclusion, the stealth slowdown narrative under Bidenomics highlights the need for investors and policymakers to remain vigilant and adaptable in the face of changing economic conditions. While the U.S. economy has made significant progress under Bidenomics, the slowdown in job growth, GDP expansion, and the rise in inflation suggest that the economy may not be as robust as initially perceived. As the economy continues to evolve, investors should consider diversifying their portfolios and monitoring key economic indicators to mitigate risks and capitalize on emerging opportunities.