In a recent CBS/YouGov poll, 59% of people questioned described the current economy as “bad”, with nearly 2/3 believing it was stronger during the Trump administration. This stands in sharp contrast to what the experts are saying and what the numbers show: GDP growth was 3.3% last quarter, unemployment down to a record-low of 3.4% (from 6.9% when Biden took office), consumer spending is up, inflation is down, etc. The fact of the matter is, despite these impressive indicators, the “average Joe” just isn’t feeling the good times or benefits. This can likely be attributed to years of price increases prior to recent change, the uncertainty of the Covid years, and staggering interest rates. In tandem with the general politicised air of today, people feel vulnerable to what’s been described as the “vibecession”, an addendum to the “perception becomes reality” thesis.

Needless to say, this is a major problem for the Biden camp as the election approaches. As with our last piece on Biden’s presentation of his age, it’s not necessarily effective to just state that everything is fine or “the economy is strong”. The lapse in credibility comes from the day-to-day reality of gas and grocery prices; the latter of which have remained high despite the slow-down of inflation in the past year. Indeed, the gravest mistake the Biden camp has made in this respect has been to emphasise this improvement, while blatantly ignoring how desperate the rate of inflation was in 2022 (8%). Either side of that (4.7% in 2021 and 4.1% in 2023) aren’t exactly great either, when you compare with the 2010s’ figures (e.g. 1.8% in 2019). So while the economy is on the right path, people are still feeling that 11% increase in grocery prices (2021-22), which normally would have been a 2% annual increase. 

As elections are largely media driven, we must remind ourselves that fear is unfortunately a big selling point too. Therein, the anxiety surrounding what may come seems to be more pressing than ever. As the invasion of Ukraine sent energy prices skyrocketing (albeit far more in Europe), people have become wary of international affairs having knock-on effects. The beginning of last year was marked by reports of massive layoffs in the tech industry. AI meanwhile, hovers as a merciless shadow over the proceedings of so many more. The housing market, of course, remains a mess as people resist selling, lest they lose optimal interest rates. And some economists have speculated that recent consumer spending (or splurging) could create vulnerability in the market going forward. It may be a glass-half-empty approach to looking at things, but the notion of a “vibecession” (while cringeworthy as a term) is not a merit-less one.

Again, it takes time for economic improvement to translate into reality. Back in 1992, George HW Bush’s electoral hopes were partially dashed by an 8-month recession (which ended in March 1991). The sluggish recovery cast doubts on his ability to govern domestically, leading to the popular slogan employed by the Clinton camp: “it’s the economy, stupid”. A compromise on his 1988 “no new taxes” pledge had actually helped set the stage for the growth of the 1990s but alas, despite recovery by the election, Bush’s image never faired as successfully.

Will Biden’s? There has been a longer stretch of economic prosperity than in 1992 (unfortunately mired by high inflation rates) but should things keel out and continue as they are, I think there’s cause for optimism in his camp. There’s still eight months to go and the creation of new jobs and businesses are likely to bolster his image. But it’ll take some strategic selling and frankness. As with the matter of age, perhaps Biden needs to acknowledge the perception out there; how devastating inflation’s been, while promising in turn to challenge unjust profits on the parts of certain corporations. He took a step in this direction during a Super-Bowl break, by addressing the scandal that is “shrinkflation” (where product sizes shrink but prices remain high; this is whole other article though so I won’t delve deeper for now.) He needs to continue fighting for an economy that works for low- and middle-income families, via cost of living prices, as well as the bigger picture trends of GDP and employment. Again, it’s the perception that becomes reality.