Well…this aged well.
At the beginning of August last year, Kamala Harris praised a jobs report as an example of “Bidenomics” at work. The term was adopted by the Biden administration to counter Republican claims about a weak economy. Every positive economic update was attributed to their policies.
“Bidenomics is working,” she declared, allowing the Biden-Harris administration to take credit for the economic improvements that month.
US Vice President Kamala Harris hailed the latest jobs report and praised ‘Bidenomics’ at an event in Washington, D.C. https://t.co/jcAkCvNndL pic.twitter.com/FAaTlsLc9a
— Reuters (@Reuters) August 4, 2023
A year has passed since then, and the political landscape for the presidency has significantly changed. The 2024 election has shifted from a rematch of 2020 to Donald Trump running directly against Kamala Harris. The Biden administration made a deliberate choice to call itself the “Biden-Harris Administration,” tying her closely to Biden’s policies.
However, on Friday, the jobs report for July was so disappointing that it sent the markets into a panic.
Nonfarm payrolls grew by only 114,000 for the month, down from a downwardly revised 179,000 in June, and far below the Dow Jones estimate of 185,000. The unemployment rate edged up to 4.3%, its highest since October 2021.
Average hourly earnings, a key inflation indicator, increased by 0.2% for the month and 3.6% from a year ago. Both figures fell short of the forecasts for 0.3% and 3.7%.
Stock market futures added to losses following the report, while Treasury yields plunged.
As the markets opened, the outlook remained grim.
U.S. stock futures dropped sharply on Monday amid a global market sell-off fueled by U.S. recession fears. Japan’s Nikkei 225 experienced a 12% plunge, its worst day since the 1987 Black Monday crash on Wall Street.
Which just happened to take place the day after Pelosi said Biden should be on Mt. Rushmore.
Larger clip: Pelosi says Biden belongs on Mt. Rushmore, then Lesley Stahl oozes, “If there were a Mount Rushmore for Speaker of the House, Nancy Pelosi would certainly be up there!” All those “accomplishments”!
That and more January 6 propaganda, no questions, just same spin. pic.twitter.com/ejGUmUjfbT
— Tim Graham (@TimJGraham) August 5, 2024
If the Dow follows through on this decline, it would be the first 1,000-point drop since September 2022. There are growing global fears of a U.S. recession, with concerns that the country is, at best, in a pre-recession state.
The Federal Reserve has been raising interest rates to combat inflation. Typically, such actions lead to a recession. While this hasn’t happened yet, many economists believed the Fed had achieved a soft landing. However, the sudden contraction in the jobs market has reignited fears, causing widespread panic.
If the Biden-Harris administration took credit for the economy a year ago, it must also be accountable now. Biden’s policies contributed to the sharp rise in inflation, affecting consumers. This inflation prompted the Fed to hike rates, leading to economic contraction and bringing us to our current state.
The timing could not be worse for Kamala Harris, whose name is half of the “Biden-Harris” administration. She credited “Bidenomics” with the state of the economy and is now tied to these policies. If the economy enters a full-blown recession, the blame will fall on her.
This was Biden about a week before the crash.
Did you know: Biden “cured the economy” last week? pic.twitter.com/gkcnlq0yMx
— Kyle Becker (@kylenabecker) August 5, 2024
