As the US presidential election draws near, the state of the economy has become a key point of contention. With just a week to go before voters cast their ballots, Treasury Secretary Janet Yellen took the opportunity to tout the Biden administration’s economic achievements.
“When President Biden and Vice President Harris took office, thousands of Americans were dying each day from COVID-19. The unemployment rate was 50 percent higher than it is now,” Yellen remarked at an American Bankers Association event. “Today, by contrast, the U.S. economy is strong,” she added. “We’ve seen robust economic growth, bolstered by solid consumer spending and business investment, even while inflation has come down significantly from its peak.”
Yellen highlighted the fact that while the cost of living has risen, wages are growing at a faster pace, suggesting that Americans are better positioned to afford goods and services than before the pandemic. She also noted the record number of new businesses being started, indicating optimism about the economic future.
However, voters in key battleground states – where the election will likely be decided – seem less optimistic about the economic outlook. A recent Reuters/Ipsos poll revealed that 61% of voters in these states believe the economy is on the wrong track, with a similar percentage expressing concern about the rising cost of living.
This disconnect between the administration’s narrative and voter sentiment is playing out in the retail landscape. As consumers prioritize value and affordability, major retailers like Walmart and Target are aggressively lowering prices on essential goods, attracting a wider range of customers. Meanwhile, dollar stores are facing increased competition and dwindling foot traffic as these larger retailers cater to the cost-conscious consumer.
In the final days leading up to the election, Yellen’s statements are intended to reinforce the Biden administration’s message of economic recovery and growth. She warned that deviating from current policies could jeopardize the country’s economic trajectory. Ultimately, voters will decide on November 5th whether they believe the economic narrative put forward by the Biden administration or if they are swayed by concerns about the cost of living and the overall health of the economy.
