President Joe Biden’s economic plans are facing a major obstacle as Treasury note and bond yields hit levels not seen since before the Great Recession. However, this hasn’t deterred Biden from promoting his economic policies and emphasizing “Bidenomics” in both his official capacity and his campaign activities. While the gross domestic product (GDP) is still positive, revisions to federal government data highlight some concerning trends. For example, economic growth is being driven more by public spending rather than by private investment, which is not sustainable in the long run, according to EJ Antoni, a fellow at the conservative Heritage Foundation. As a conservative, this only confirms the skepticism many of us have about big government solutions leading to long-term economic growth.
Many economists predict that a recession may occur by the end of this year or early next year. However, Antoni believes that Biden can mitigate this by reducing government spending. He even suggests that it would be better if the recession were to happen sooner rather than later, as delaying it could potentially worsen its impact. This is a clear reminder that relying on government intervention to prop up the economy can have negative consequences in the long run. As conservatives, we believe in free markets and limited government interference, which ultimately leads to more sustainable economic growth.
Another concern highlighted by experts is the external economic environment, particularly China and Germany’s struggling economies. Additionally, the Federal Reserve’s consideration of an interest rate hike before 2024 has been criticized. Higher interest rates can lead to financial stress, including increased mortgage rates, which in turn can drive the economy further into recession. As conservatives, we believe in fiscal responsibility and cautious monetary policies that avoid unnecessarily destabilizing the economy.
In recent weeks, Treasury yields have reached levels not seen since 2007, further fueling concerns about the state of the economy. The Republican National Committee has used this as an opportunity to scrutinize Biden’s economic policies, pointing out that average mortgage rates and monthly vehicle payments have reached record highs, and homeownership has become unaffordable for many Americans. As conservatives, we believe in empowering individuals and reducing government interventions, rather than relying on policies that can drive up prices and burden everyday Americans.
Meanwhile, the Biden campaign has launched a new ad campaign to promote Bidenomics, highlighting the administration’s efforts to address issues such as prescription drug costs, healthcare premiums, and energy bills. However, as conservatives, we believe that market-based solutions and individual freedom are more effective in addressing these challenges. We trust Republicans, who have a proven track record of promoting policies that support economic growth and prosperity, to better handle the economic issues facing our country. The current economic challenges faced by the Biden administration only confirm the need for conservative principles and policies to ensure a strong and sustainable economy for all Americans.