The US economy is a collection of paradoxes. While the approval rating of US President Joe Biden is declining, the economy is growing, leaving experts puzzled.
According to analysts, the American economy is characterized by weak consumer confidence and low average approval ratings for the head of state. Paradoxically, all of this is accompanied by relatively strong job growth and remarkable economic resilience.
The Federal Reserve's annual survey found that a significant percentage of Americans (72%) were “doing okay” financially. Such optimism among US consumers was last seen in 2016. Since then, things have looked far from okay. Analysts believe that those Americans who perceive their financial well-being as worse than a few years ago are unlikely to re-elect Joe Biden for a second term.
Experts argue that a voter bias against Biden could be a potential hurdle for him. In addition, consumers blame the head of the White House for their financial health deterioration.
According to the Fed report, the economic fallout from the coronavirus pandemic is still the key factor reflecting consumer sentiment in the United States. Many American consumers see 2021 as the best year (78%), noting that they were living comfortably during that time. After all, in 2020 and 2021, the population was largely supported by government relief measures, corporate aid, tax breaks for parents, and suspended student loan payments. Now these programs have been scrapped and Americans' savings are nearly depleted.
