Bidenomics spurred stronger GDP growth: Morgan Stanley
S E E D E D C O N T E N T
Published Fri, Jul 21 2023
- President Joe Biden's economic policies drove an unexpected economic surge that has forced Morgan Stanley to make a "sizable upward revision" in its GDP forecasts.
- Biden's 2021 infrastructure bill has created "a boom in large-scale infrastructure," wrote MS analysts, while domestic business investment "is rebounding, led by manufacturing."
U.S. President Joe Biden gives a thumbs up as he walks with first lady Jill Biden to Marine One on the South Lawn of the White House July 14, 2023 in Washington, DC.Drew Angerer | Getty Images
WASHINGTON — Morgan Stanley is crediting President Joe Biden's economic policies with driving an unexpected surge in the U.S. economy that is so significant that the bank was forced to make a "sizable upward revision" to its estimates for U.S. gross domestic product.
Biden's Infrastructure Investment and Jobs Act is "driving a boom in large-scale infrastructure," wrote Ellen Zentner, chief U.S. economist for Morgan Stanley, in a research note released Thursday. In addition to infrastructure, "manufacturing construction has shown broad strength," she wrote.
As a result of these unexpected swells, Morgan Stanley now projects 1.9% GDP growth for the first half of this year. That's nearly four times higher than the bank's previous forecast of 0.5%.
"The economy in the first half of the year is growing much stronger than we had anticipated, putting a more comfortable cushion under our long-held soft landing view," Zentner wrote.
US President Joe Biden speaks about a new manufacturing partnership between Enphase Energy and Flex, at Flex LTD in West Columbia, South Carolina, on July 6, 2023.Brendan Smialowski | AFP | Getty Images
The analysts also doubled their original estimate for GDP growth in the fourth quarter, to 1.3% from 0.6%. Looking into next year, they raised their forecast for real GDP in 2024 by a tenth of a percent, to 1.4%.
"The narrative behind the numbers tells the story of industrial strength in the U.S," Zentner wrote.
Morgan Stanley's revision came at a pivotal time for the Biden White House. The president has spent the summer crisscrossing the country, touting his economic achievements. "Together we are transforming the country, not just through jobs, not just through manufacturing, but also by rebuilding our infrastructure," Biden said Thursday during a visit to a Philadelphia shipyard.
The White House has dubbed this brick-and-mortar economic growth formula "Bidenomics," a phrase originally used by Republicans to jab the president, who co-opted the term as a badge of honor.
In addition to his legacy, Biden has also staked his 2024 reelection bid on Bidenomics, betting that strong economic growth and a campaign built around kitchen table issues will ultimately drown out Republicans' culture war outrage.
This could be a risky wager, however. The latest CNBC All-America Economic Survey, released Thursday, found that just 37% of respondents approved of Biden's handling of the economy, while 58% disapproved. Only 20% of Americans agreed that the economy was excellent or good, while a whopping 79% said it was just fair or poor, CNBC's poll found.
Republicans have seized on voters' economic pessimism to argue that Biden is ignoring everyday Americans' ongoing challenges with high interest rates and inflation that has fallen some, but still sits above pre-pandemic levels.
"Bidenomics is about blind faith in government spending and regulation," GOP House Speaker Kevin McCarthy said in a statement Friday. "It's an economic disaster where government causes decades-high inflation, high gas prices, lower paychecks and crippling uncertainty that leaves America worse off."
With 16 months to go before Americans cast their ballots for president, Biden's political fortunes, for the moment, appear to be improving along with the economy.
"This report confirms what we've long said: Our strong and resilient economy is Bidenomics in action," White House assistant press secretary Mike Kikukawa said in an email to CNBC.
"The president's economic agenda is spurring investments in manufacturing and infrastructure that are creating jobs and supporting workers."
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Joe Biden is riding a blue tide of good economic news into 2024...
Great, he can reduce the deficit by collecting on the loans people haven't been paying on.
Maybe even by the end of his term inflation will be as low as when he took office, but no one is holding their breath on that fantasy.
Well, I can agree with this statement. Recently got back from a multi-week multi-state vacation and I can tell you there is a lot of road construction happening in every state I drove thru.
Problem is I cannot find how it was paid for. There are plenty of "promises" of how this will be paid back but nothing on how they set up the initial $550 billion with the only exception being the redirecting unspent emergency relief funds and additional taxes and the promise of how this will in turn generate additional income. Does anybody know how much they borrowed against the deficit to start the program?
And yes, the GDP will increase because of this. All federal funding helps to increase GDP. But Biden has also allowed the deficit to increase, growing to $1.4 trillion thru June with another three months before the fiscal year ends. Seems a shame to grow the deficit so large, how much of an impact will this have on the '24 elections?
... which the media aren't reporting. Many Americans still believe the economy is bad, because their favorite "news" channel says so. Some NT members are still pushing that story.
So we are just supposed to pretend this article doesn't exist.
Interesting way to go about things, I guess.
True...
Wow, meme #16 already today?
Yep, cost of nearly everything is up. Wages aren’t keeping pace. Personal debt is going up. Mortgage interest rates are up. Home ownership rates are going down. Etc, etc
Bidenomics ……
More obtuse memes …. Shocking ….
You know it is funny as hell when you troll your own articles with off-topic memes, right?
Except wage growth has exceeded inflation this year...
The memes are in lieu of logic, reason, truthfulness, and sanity.
Yeah, with a little luck, maybe wages will grow enough to cover what they didn't cover under Biden's first two years.
I don’t know when he made that statement but during the trump administration our debt grew by $6.7 trillion, today our debt is $32.5 trillion. Trump’s share was 20%. It will be less at the end of 2024.
Not true. The rate of inflation exceeded the growth of wages for the first time in recent years in April 2021. In this month, inflation amounted to 4.2 percent, while wages grew by 3.2 percent. The growth of wages surpassed that of inflation for the first time since March 2021 in February of 2023.
https://www.statista.com/statistics/1351276/wage-growth-vs-inflation-us/#:~:text=U.S.%20inflation%20rate%20versus%20wage%20growth%202020%2D2023&text=In%20this%20month%2C%20inflation%20amounted,2021%20in%20February%20of%202023.
The most-watched channel is Fox News. They are "reporting that the economy is a shambles.
Are you not aware?
I leave Fox watching to the fanatics.
so, what part of Fox do you like the most?
so not only dumb memes but ones that lie!
Well, when there is nothing else.....
it is hard to explain math to people who "know" increase in budgets are really cuts.
You do realize that roughly 66 pct of our national debt was incurred since the election of Barack Obama.
That's right, two thirds of our national debt can be traced to the Obama agenda.
Tell that to everyone chalking up credit card debt and tapping savings to pay their bills.
Left wing denial and crackpottery
They learned that from the Biden admin itself.
Nothing like a good parrot.
Like Faux 'news'? I cannot believe anyone uses them as a 'source'. It's quite moronic.
That's not true. [deleted]
If we want others to recognize reality, we must do the same. It's a very sad fact, but it's a fact: Fox News is the most watched.
Why? Obviously not for the truth, so... Part of it is probably Tribal Loyalty: MAGAs feel obligated to watch Fox, or something even further right. Part of it is bias confirmation, the viewers want to hear "what they already know".
The truth is unwelcome.
They watch Faux 'news' because they PD&D just like they do.
And on his own article.
Meh, Biden policy has had little positive effect if any. You want to thank someone? Thank Jerome.
Powellonomics
I usually would agree. But in the current case, Biden’s stimulus is a big part of his success.
Only in la la land
Every once in a while, Sparty, you say something that isn't completely stupid. So I try to give you some credit, and then try to coax you into a thoughtful conversation. I'm pretty sure you're capable of that.
But each time, you duck out, like here. I wonder why.
It never ceases to amaze me how you can make a comment and be wrong on all counts. It’s quite a skill Bob.
Congrats!
When is that?
You know I meant when does he say something that isn't completely stupid?
I put him on ignore long ago for those completely stupid statements.
Yes. I think there's an intelligent person, somewhere in there... so I keep trying. I can be stupidly stubborn.
Nah, complete waste of time.
Lol …. You two are pair to draw to. That’s for sure.
Don’t waste your time believing I care what either of you think.
I don’t. Not in the least.
Well, throwing that tantrum indicates you surely do care...
Amazing ….. everything in that comment is wrong.
Amazing!
Then why do you keep replying to them? Your actions show the opposite of your claims.
Nah, my actions show one thing.
I respond to who I want, when I want and how I want. Other members have zero control over that here.
Zero
You mean something completely stupid like
That was you.
So you responded because YOU cared what they said, even if nobody else did... Okey dokey.
See 2.1.13 …. Apply liberally, rinse and repeat as necessary
This post says far more about you than about me.
I know. Stupid shit like thinking Biden having any success does say so much about you.
Yup. That's why Fitch downgraded the credit rating of Biden's government.
Of course, Democrats ain't bright enough to understand that. So, Democrats are bragging about another Biden botch up.
They’re bright enough. Some of them anyways which leaves being intentionally dishonest as about the only reason for those folks.
Which is much, much worse than the folks who are too dim to have made the connection.
so some yahoos whining about the timing.
bet they wouldn't have been whining if Biden wasn't President.
Paul Krugman, LoL. I remember when Paul said that Bill Clinton fixed the VA.
Krugman predicted that Trump would ruin the economy.
He's a real genius.
Ad hominem , kinda?
Why don't you explain inflation again? That was s-o-o-o funny!
When did I do that? Are you imagining things?
You got that right.
[Deleted]
[Deleted]
Krugman was right.
He just missed it by four years and one President.
[Deleted]
Lol ….perfect illustration of Bidenomics.