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President Joe Biden, in a speech, finally acknowledges and embraces the widely used term “Bidenomics” for his economic plan. Despite his playful dismissal, it’s evident that Biden is well aware of what Bidenomics entails. However, the challenge lies in ensuring voters understand its significance. Hence, Biden’s upcoming summer and fall campaign will focus on highlighting his accomplishments and improving the national sentiment. This marks the beginning of Biden’s 2024 reelection campaign.

Contrary to the perception that Biden is ineffective and lacking in competence, he has been making substantial progress on longstanding issues that previous presidents struggled to address. Despite his occasional gaffes, Biden’s ability to navigate the chaotic landscape of the Republican party has prevented a catastrophic default during the highly publicized confrontation over raising the US borrowing limit.

During his initial two years in office, Biden successfully negotiated and enacted several significant bills that will reshape the energy, automotive, and semiconductor industries in the United States for years to come. All this was achieved with a slim majority in the Senate for the Democratic party.

So, what exactly is Bidenomics? It represents a paradigm shift in leveraging governmental influence to redirect the economy and rectify perceived market failures of the past three decades. One example is the emphasis on revitalizing America’s blue-collar workforce by incentivizing the return of specific manufacturing sectors to the country, with a preference for unionized labor.

Bidenomics also recognizes the need for a faster response to climate change and reducing carbon emissions, as capitalism has been slow to adapt. Consequently, Biden signed the Inflation Reduction Act, which provides substantial incentives for power producers and consumers to transition to green energy, once again prioritizing union workers.

Additionally, the CHIPS Act of 2022 aims to revitalize high-end semiconductor manufacturing in the United States while countering China’s economic influence. Furthermore, the 2021 infrastructure law, signed by Biden, represents the largest effort in decades to modernize infrastructure, with a focus on renewable energy and creating union jobs.

To steer the economy towards benefiting working-class Americans and promoting renewable energy, Biden plans to utilize influential regulatory agencies such as the Environmental Protection Agency and the Securities and Exchange Commission. These endeavors entail substantial fiscal spending alongside robust regulation and enforcement, with the hope that they will contribute to lowering inflation.

The effectiveness of Bidenomics remains uncertain, given the complexity of its competing priorities. As Beacon Policy Advisors noted, attempting to tackle climate change, support labor, and lower inflation simultaneously is akin to solving a Rubik’s Cube, potentially leaving everyone dissatisfied.

Visible consequences of Bidenomics have begun to emerge, with both supporters and critics claiming validation. For instance, the Energy Department recently announced a record-breaking $9.2 billion low-interest loan for a Ford Motor Co. joint venture, aiding the establishment of electric-vehicle battery plants in Kentucky and Tennessee. These incentives, provided under last year’s Inflation Reduction Act, are expected to lower costs for buyers and drive demand, thereby creating thousands of jobs.

While some argue that such government subsidies introduce political influences and distort capital allocation, capitalism alone may not effectively address climate change or counter China’s economic strategies. Thus, Bidenomics represents an exploration of government-led solutions to challenges the market has struggled to resolve.

Amidst the ongoing expansion of green-energy initiatives and government incentives, a surge in American manufacturing appears to be taking place, benefiting blue-collar workers and middle-income Americans who have faced challenges in the 21st century. Although it may not represent the most efficient allocation of capital, it could prove essential.

President Biden’s approval rating reflects a lack of recognition for his achievements thus far. As a presidential candidate once again, his task is to convince voters that he has been instrumental in transforming the economy to better serve the majority of Americans. The coming years of Biden’s presidency will be dedicated to explaining the actions taken during his initial tenure.