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Changes in the US economy during Joe Biden reign

Feb. 12, 2023, 7:11 a.m. ET
Changes in the US economy during Joe Biden reign

The role of the President's personality in the economic processes taking place during his reign should not be underestimated. The head of the American state Joe Biden is endowed with broad powers that affect the growth or decline of the main indicators of the country's economy. Let's figure it out together what has changed since January 20, 2021, when Joe Biden took the oath at the inauguration.

Changes in the labor market

The American president counts the active fight against unemployment among the strengths of his reign. And this is true, because at the moment the number of people who are of working age, but cannot find a job, has significantly decreased. The unemployment rate in the United States has approached the indicators before the coronavirus pandemic.

According to statistics, before Biden became president, the unemployment rate in the country reached 6.7%. Currently, it has become much lower: 3.9%. The search for employees is carried out daily. About 10 million vacancies have been opened in different states of the country.

The main problem in the labor market is now considered to be the "great dismissal". This means an economic trend in which employees leave their jobs en masse. It is assumed that it became a kind of response to the consequences of the COVID-19 pandemic, when wages stagnated, despite the increase in the living cost.

Energy sector

Since the beginning of Biden's reign, the price of oil has increased by 62%. Now it is at the highest levels since 2014. At the same time, there is an increase in prices at gas stations – over the past year they have almost doubled. Heating of housing with natural gas has also risen in price. According to forecasts, prices will increase by 30% compared to last winter.

Energy sector

Since the beginning of Biden's reign, the price of oil has increased by 62%. Now it is at the highest levels since 2014. At the same time, there is an increase in prices at gas stations – over the past year they have almost doubled. Heating of housing with natural gas has also risen in price. According to forecasts, prices will increase by 30% compared to last winter.

The heyday of the stock market

During the year of the president's rule, the S&P 500 index has grown by 19%. This indicator does not always depend on the political course, although Donald Trump predicted a stock market collapse if his rival wins.

Rising inflation in the country and the growth in interest rates affected the increase in bond yields. For example, the yield on treasury securities is above 1%, while before the beginning of 2021 its level was about 0.13%.

Economic growth

At the beginning of 2021, there was a significant increase in GDP. It reached 5.7%, which was regarded the most considerable growth since 1984. But by the middle of the year, growth began to slow down. This was explained by the increase in consumer costs associated with the introduction of a vaccination program for citizens.

Changes in the US economy during Joe Biden reign

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