Under the Biden administration, the role of government in the economy has undergone its biggest shift since Franklin Roosevelt’s “New Deal” in the 1930s. Rather than fear debt and inflation, Biden is flooding the economy with dollars and spending programs.
Most Americans say the result is they are worse off now than before Biden got into the White House.
Weak First Quarter
During the first quarter of 2023, the economy slowed sharply. The Gross Domestic Product, the broadest gauge of economic output, grew at a 1.1% annualized rate, down from the 2.6% pace of the fourth quarter of 2022.
The Federal Reserve Boards’ aggressive drive to tame inflation by raising interest rates, has battered the housing market and businesses.
Americans Know They Are Worse Off
According to the most recent CNBC All-American Survey, which reviews perceptions of the economy every quarter, 69 % of respondents view the economy negatively. This is the most negative public perception of the economy in the poll’s 17-year history.
The poll, which was taken in April 2023, revealed that 62% disapprove of how Biden is handling the economy. 80% are taking action to reduce their spending habits.
Warren Buffett Predicts Downturn
At his May 6, 2023, annual Berkshire Hathaway general meeting in Omaha, Nebraska, Warren Buffett said he expects earnings at most of Berkshire’s operations to fall this year as a long-predicted downturn slows economic activity.
Buffett said that for the past 6 months, the “incredible period” for the US economy has been coming to an end.
Carl Icahn Issues Grim Warning
During a March 14, 2023 interview on CNBC’s “Closing Bell” billionaire investor Carl Icahn said the economy is at a breaking point, blaming “worse than mediocre” leadership and soaring inflation.
Icahn said he sees “major problems” in leadership on Capitol Hill and “in Washington nobody knows what is going on.”
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