The Impact of 'Bidenomics' on the US Economy
Kamala Harris, the US Vice President, has been actively campaigning across the country, tailoring her speeches to suit the local accents of each town and region. She has been promoting her vision for an "opportunity economy" and has even declared herself a capitalist in Pennsylvania. However, she has also suggested communist-style price controls as a solution to the inflation crisis that has hit low to mid-tier households. This crisis has been attributed to the economic policies, termed 'Bidenomics', implemented by her and President Biden over the past 3.5 years.
Harris on CBS "60 Minutes"
In a recent interview on CBS "60 Minutes", Harris was questioned about her economic plan and how it would be funded. She failed to provide a clear answer, which was not well-received, especially with the presidential election just around the corner. This interview, along with her running mate, Minnesota Gov. Tim Walz, did not paint a positive picture for the Democrats.
Harris and the Failures of Bidenomics
Harris has been trying to distance herself from the failures of Bidenomics, even as Americans grapple with the high inflation and interest rates it has triggered. She has been traveling across the country, trying to convince the public that the Democrats can lead them to a better future.
Goldman's Consumer Survey
A recent consumer survey from Goldman, titled "Americas Retail: Supermarkets 3Q Consumer Survey Reveals Incremental Focus on Value," reveals that consumers are increasingly seeking value. The survey included 2,000 consumers of various ages, incomes, education, and employment backgrounds, and most of the questions were related to shopping preferences at supermarkets or big-box retailers.
The survey found that the economic policies of Bidenomics have pushed consumers to seek value. When asked about the main reason for switching their grocery shopping location, 52% of the respondents cited prices, a significant increase from 38% in 1Q20. The four-year average is around 43%. This trend of consumers prioritizing prices has intensified during the first term of Biden-Harris.
The survey also revealed that most respondents shop at Walmart, a change from the pre-GFC era when the standard of living was higher. Walmart used to cater to lower-income consumers, but now it attracts both the rich and the poor.
Consumer Behavior and Inflation
The survey also showed that consumers are in a 'hibernation mode', choosing to eat at home due to high inflation and interest rates. This is not a good sign for restaurant stocks.
The key takeaway from the survey is that consumers are feeling the pinch of inflation and high interest rates, and they will not forget who was in power when this inflation storm hit. It is likely that many will vote based on the state of their wallets in the upcoming election.
Bottom Line
The impact of 'Bidenomics' on the US economy and the living standards of consumers is evident. The high inflation and interest rates have forced consumers to prioritize value and change their shopping and eating habits. As the presidential election approaches, these economic hardships are likely to influence voters' decisions. What are your thoughts on this matter? Do you think the economic policies of Bidenomics have had a positive or negative impact on the economy? Share your views and this article with your friends. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.
The Impact of 'Bidenomics' on the US Economy
Kamala Harris, the US Vice President, has been actively campaigning across the country, tailoring her speeches to suit the local accents of each town and region. She has been promoting her vision for an "opportunity economy" and has even declared herself a capitalist in Pennsylvania. However, she has also suggested communist-style price controls as a solution to the inflation crisis that has hit low to mid-tier households. This crisis has been attributed to the economic policies, termed 'Bidenomics', implemented by her and President Biden over the past 3.5 years.
Harris on CBS "60 Minutes"
In a recent interview on CBS "60 Minutes", Harris was questioned about her economic plan and how it would be funded. She failed to provide a clear answer, which was not well-received, especially with the presidential election just around the corner. This interview, along with her running mate, Minnesota Gov. Tim Walz, did not paint a positive picture for the Democrats.
Harris and the Failures of Bidenomics
Harris has been trying to distance herself from the failures of Bidenomics, even as Americans grapple with the high inflation and interest rates it has triggered. She has been traveling across the country, trying to convince the public that the Democrats can lead them to a better future.
Goldman's Consumer Survey
A recent consumer survey from Goldman, titled "Americas Retail: Supermarkets 3Q Consumer Survey Reveals Incremental Focus on Value," reveals that consumers are increasingly seeking value. The survey included 2,000 consumers of various ages, incomes, education, and employment backgrounds, and most of the questions were related to shopping preferences at supermarkets or big-box retailers.
The survey found that the economic policies of Bidenomics have pushed consumers to seek value. When asked about the main reason for switching their grocery shopping location, 52% of the respondents cited prices, a significant increase from 38% in 1Q20. The four-year average is around 43%. This trend of consumers prioritizing prices has intensified during the first term of Biden-Harris.
The survey also revealed that most respondents shop at Walmart, a change from the pre-GFC era when the standard of living was higher. Walmart used to cater to lower-income consumers, but now it attracts both the rich and the poor.
Consumer Behavior and Inflation
The survey also showed that consumers are in a 'hibernation mode', choosing to eat at home due to high inflation and interest rates. This is not a good sign for restaurant stocks.
The key takeaway from the survey is that consumers are feeling the pinch of inflation and high interest rates, and they will not forget who was in power when this inflation storm hit. It is likely that many will vote based on the state of their wallets in the upcoming election.
Bottom Line
The impact of 'Bidenomics' on the US economy and the living standards of consumers is evident. The high inflation and interest rates have forced consumers to prioritize value and change their shopping and eating habits. As the presidential election approaches, these economic hardships are likely to influence voters' decisions. What are your thoughts on this matter? Do you think the economic policies of Bidenomics have had a positive or negative impact on the economy? Share your views and this article with your friends. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.
