WHAT THEY’RE SAYING: “WELCOME TO THE BIDEN BOOM”
Economy Headed To Best Year Since 1984
Weekly Unemployment Claims Lowest Since Pandemic
Goldman Sachs Forecasts “Stunning” 8% Economic Growth
ADP Chief Economist: “It’s really the stimulus that’s made the difference in the economic recovery.”
Despite bogus Republican predictions of economic depression under President Biden, the economy is instead headed for its best year since 1984, weekly unemployment claims are the lowest they have been since the onset of the pandemic, and hunger levels have significantly declined thanks to the American Rescue Plan’s $1,400 direct checks and expanded child tax credits.
HERE’S WHAT THEY’RE SAYING:
The Washington Post: As economy spikes, Republicans are still waiting for the ‘Biden depression’ that Trump predicted
Throughout last year’s campaign, President Donald Trump issued a series of increasingly dark predictions about what would happen if Joe Biden were elected.
“If he gets in, you will have a depression the likes of which you’ve never seen. Your 401(k)s will go to hell and it’ll be a very, very sad day for this country,” Trump said in the Oct. 22 candidate debate.
Instead, the rebounding economy is headed for its best year since 1984, according to the International Monetary Fund. The U.S. economy likely expanded in the first quarter at an annual rate of 6 percent and should accelerate in the months ahead, economist Ian Shepherdson of Pantheon Macroeconomics told clients this week. More than 1.3 million jobs have been added since the election.
But so far, none of the attacks have drawn much support beyond the GOP base. A Gallup poll last month found that 63 percent of Americans backed the Biden plan.
The Wall Street Journal: Welcome to Joe Biden’s Boom Economy
Welcome to the Biden boom. While the first quarter of 2021 is history, the data are still coming in. “Forecasts” of real economic growth, based on partial data, now run in the 7% to 8% range. More important, there is a good chance the stellar first quarter won’t be a flash in the pan. The Wall Street Journal’s recent poll of economists registered an average forecast of 6.4% growth over the four quarters of 2021.
If that happens, it will mark the fastest four-quarter growth spurt since 1984. The 1983-84 boom, which came after a deep recession, led to Ronald Reagan’s declaration of “morning in America”—and his smashing 1984 electoral victory. Like the Reagan boom and the Clinton boom, the Biden boom won’t be due entirely to the policies of the president. But they are sure helping.
Enter President Biden, and exit GOP support. In its first major legislative achievement, the Biden administration managed to get the $1.9 trillion American Relief Plan passed last month—with no Republican votes. The plan is giving the economy a big shot in the arm right now.
The Washington Post: Biden’s economy shows strength, but recovery is far from complete
The stimulus package, known as the American Rescue Plan, which passed with only Democratic votes in Congress, has triggered a noticeable rise in spending. Economists are raising their forecasts for how robust the economy will be in the coming months.
Before the election, in October, forecasters expected the economy to grow by 3.9 percent in 2021, according to a survey of 50 economists by Wolters Kluwer’s Blue Chip Economic Indicators. By April, the consensus estimate had jumped to 6.3 percent. Many Wall Street economists predict an even faster rate of growth. Goldman Sachs now forecasts a stunning 8 percent, which would be the U.S. economy’s strongest year since 1951.
“It’s really the stimulus that’s made the difference in the economic recovery,” said Nela Richardson, chief economist at payroll processor ADP. “We’re going to celebrate a lot of good economic data,” she added.