The U.S. economy is showing dangerous signs of decline under Democratic leadership. Last Thursday, the Commerce Department reported that GDP fell 1.4 percent in the first quarter, marking an abrupt change from the 6.9 percent growth in the previous quarter. This report was followed Friday with the announcement that the Personal Consumption Expenditures price index, an inflation indicator, has skyrocketed to 7.9 percent annually, marking its fastest rise since 1982.
This combination of shrinking GDP and rising inflation may feel eerily similar to the conditions of economic stagflation which the U.S. experienced in the 1970s under President Jimmy Carter.
As talk of economic decline grows louder, Democratic leadership has clung to its call for tax increases. Last Tuesday, Senate Majority Leader Chuck Schumer (D-N.Y.) said, “If you want to get rid of inflation, the only way to do it is to undo a lot of the Trump tax cuts and raise rates.” This call for tax increases comes on the heels of the Build Back Better plan, which failed to convince the American people that trillions in spending would be an effective solution to inflation.
A new Gallup poll has highlighted the impact of these worsening conditions on public confidence in President Joe Biden’s economic leadership. The poll, which was published Monday, found that 40 percent of U.S. adults have “a great deal” or “fair amount” of confidence in Biden. Monday’s poll also looked at Federal Reserve Chairman Jerome Powell as well as Republican and Democratic lawmakers in Congress. Forty-three percent had confidence in Powell while 38 percent had confidence in Democrats in Congress. This is a sharp decline from 49 percent in Gallup’s 2021 poll. The poll revealed a 17-point drop in public confidence in the ability of the president to do the right thing for the economy. Republicans, on the other hand, rank higher than their Democratic counterparts, with a current rating of 40 percent. This is a vast improvement for the Republicans after a long recovery from their all-time low in 2014 of 24 percent of Americans having confidence in them.
Gallup noted that Biden’s 40 percent rating places him below the presidential average in managing the economy. Gallup’s Megan Brenan said: “Since 2001, U.S. presidents have averaged 52% confidence for their skill in recommending the right thing for the economy.”
The polling reflects changes in public perception of both Congress and the presidency, as trust and confidence in them are rapidly declining. Paired with the prevalence of inflation and shrinking GDP, Gallup’s most recent polls stand out as potential warning signs of an era of stagflation and economic decline.