Biden inherited an economy in crisis, but how has his administration helped lift the economy? For starters, there has been a surge in spending, which will help boost the growth rate. It’s unclear how long this surge will last but economists believe that the increase in hiring, business optimism in manufacturing and service sectors, the decrease in hunger, and the rise in the S&P 500 stock market index by 21 records are all positive indicators. In October 2020, forecasters thought the economy would grow by 3.9 percent in 2021. By April 2021, this estimate jumped to 6.3 percent with Wall street economists predicting a faster growth rate.
[bg_collapse expand_text=”Continue Reading” icon=”arrow” color=”white” view=”button-blue”]
However, as the White House has repeatedly emphasized, total economic recovery is still a work in progress. Some records show the uneven recovery rate with Black, Hispanic, and Asian American communities still suffering job and business losses.
A major portion of Biden’s recovery plan hinges on most of the American population crossing the threshold for herd immunity. Though new cases of the coronavirus are on the decline and a quarter of Americans are fully vaccinated, there is still widespread vaccination hesitancy and resistance in some states.
On a positive note, the number of Americans who claim that they are no longer behind on rent and bills and can buy food has gone up. The $1,400 stimulus payments allowed 160 million Americans access to a cash infusion that took immediate care of their basic needs. There has also been a surge in hiring. The United States added 916,000 jobs in March. However, about 8.5 million people who lost their jobs during the pandemic have not been hired back, which shows that the labor market is still far behind what it should be. Economists anticipate that job growth will accelerate when businesses see more customers.