Economic policy of the Joe Biden administration

This article is part of a series about Joe Biden
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The economic policy of the Joe Biden administration, colloquially known as Bidenomics (a portmanteau of Biden and economics), is characterized by relief measures and vaccination efforts to address the COVID-19 pandemic, investments in infrastructure, and strengthening the social safety net, funded by tax increases on higher-income individuals and corporations. Other goals include increasing the national minimum wage and expanding worker training, narrowing income inequality, expanding access to affordable healthcare, and forgiveness of student loan debt.^[1] The March 2021 enactment of the American Rescue Plan to provide relief from the economic impact of the COVID-19 pandemic was the first major element of the policy. Biden's Infrastructure Investment and Jobs Act was signed into law in November 2021 and contains about $550 billion in additional investment. Biden also signed three major pieces of longer-term economic legislation to repair infrastructure like roads, bridges and water pipes, boost semiconductor investment, and expand green energy.^[2]

The first year of the Biden presidency (2021) saw strong growth in real GDP, wages, employment, stock market returns, and household net worth, coupled with an increase in inflation, as the economy recovered from the pandemic recession of 2020. During 2022–2023, the unemployment rate averaged 3.6%. By April 2024, the unemployment rate had remained below 4.0% for the longest sustained period since 1953.^[3][4] Monthly job creation averaged a robust 402,000 from inauguration through February 2024, or 273,000 from June 2022, when the pre-pandemic jobs level was regained.^[5] However, past this point unemployment continued to increase to 4.3% in July 2024.^[3] Inflation increased up to 9.0% in June 2022 began swiftly abating and by November 2023 the inflation rate stood at 3.2% and summer 2024 had returned near target levels.^[2] While inflation was similar to peer countries, the U.S. has outgrown its peers.^[2] The Federal Reserve rapidly raised a key interest rate from March 2022 until August 2023, and is expected to lower interest rates in the second half of 2024.^[6] The stock market repeatedly broke record highs in 2024.^[7]

The New Republic praised Biden's economic record in July 2024, highlighting how record low unemployment led to wage growth at the lower half of the distribution. In October 2024, 35% of households with incomes below $50,000 a year were living paycheck to paycheck, up from 32% in 2019.^[8] The expansion of the Affordable Care Act, the child tax credit, $1400 stimulus checks, and the expansion of SNAP benefits also boosted balance sheets for low and middle-income Americans.^[2] New business formation is also up 30% from pre-pandemic levels, and notably strong among women and women of color.^[2] Biden took anti-trust more seriously than presidents in recent memory, as seen by the work of Lina Khan at the FTC.^[2] The administration also pursued lower drug prices by allowing Medicare to negotiate the prices it pays and capping the price of insulin.^[2]

Surveys have also found most Americans view their own economic situation positively and rate their local and state economies as doing better than the national economy,^[9] hinting at a disconnect fueled more by media narrative.^[2] For example, a March 2024 CBS News poll found that 65% of Americans viewed the economy under Biden's predecessor(and eventual successor), Donald Trump, as good, whereas only 38% expressed a similar positive opinion of the current economy under Biden.^[10]