WASHINGTON — President Biden launched a new push Wednesday to sell his economic agenda and convince skeptical voters that the economy is thriving under his watch, showcasing a message that White House officials see as critical to his 2024 election prospects.
In a speech in the cavernous lobby of downtown Chicago's Old Post Office, the president laid out his vision for "Bidenomics," a catch-all phrase for his strategy to boost the middle class through federal investments and promote competition in order to lower costs for working families.
He sought to contrast his plan with the trickle-down economics embraced by his predecessor and potential 2024 opponent, former President Trump. The trickle-down theory, made famous by former President Reagan, focused on cutting taxes and easing regulations.
"This vision is a fundamental break from the economic theory that has failed America's middle class for decades. It's called trickle-down economics," he said in what the White House billed as a major speech. "It failed America, it blew up the deficit and increased inequity. It weakened our infrastructure."
The remarks were part of a broader White House effort to frame Biden as the architect of an economy that has defied expectations of a recession and continued to show a resilient labor market. The latest economic numbers give the White House reason to boast. Unemployment remains at 3.7% while inflation eased to 4% from its high of 9.1% last June. But fears of an impending recession continue to loom while prices have slowed their descent from previous highs.
Last week, the Federal Reserve paused its streak of interest rate hikes for the first time in its 18-month campaign to tamp down inflation. But on Wednesday, Federal Reserve Chairman Jerome Powell warned the aggressive campaign would continue because of a strong labor market.
"More restrictions are coming," Powell said during a monetary policy forum in Sintra, Portugal.
White House officials complain the president hasn't been credited for the economic recovery under his leadership. Biden's handling of the economy has been a persistent thorn in his side since inflation hit a 40-year high last summer.
Just 34% of U.S. adults approve of his handling of the economy, according to an Associated Press-NORC Center for Public Affairs Research poll released Wednesday. Similarly, a CBS News poll released in June found just 36% approve of Biden's handling of the economy compared with 64% who disapprove.
The president has repeatedly blamed soaring food and gas prices on the COVID-19 pandemic and the war in Ukraine, but Republicans argue Biden's government spending has led to the record-high inflation that has bogged down Americans over the last two years.
"I'm not here to declare victory on the economy. I'm here to say we have a plan that's turning things around incredibly quickly," Biden said in Wednesday's speech. "We have more work to do."
On Monday, top White House senior advisors Anita Dunn and Mike Donilon released a four-page memo outlining the president's economic approach to build an economy "from the bottom up and middle out." They declared Biden's quest to turn the page on the era of trickle-down economics as "the defining project of the Biden presidency."
During his speech in Chicago, Biden sought to explain his economic vision, arguing it was rooted in "investing in Americans, because when we invest in our people, we strengthen the middle class. We see the economy grow. That benefits all Americans."
Biden's speech follows a White House event on Monday to highlight the more than $42 billion allocated to states to spend on high-speed internet projects through the bipartisan infrastructure law he championed. California received nearly $1.9 billion as part of the program.
The White House is deploying its top officials across the country to promote Bidenomics and the benefits of the sweeping economic legislation enacted since Biden took office, including the $1-trillion infrastructure law, $52.7 billion to promote domestic production of semiconductors and the president's signature climate and drug-pricing bill to boost clean-energy projects.
Though Biden's speech was an official event, it was hard to ignore the politics. Following the speech, Biden attended a campaign fundraiser hosted by Illinois Gov. J.B. Pritzker at the J.W. Marriott hotel. The minimum donation was $3,300 while a picture with the president came with the price tag of $25,000.
"Folks, I'm actually looking forward to this campaign," Biden told donors. "And you know why? Because we've actually got a story to tell."
Presidential reelection fortunes are typically tied to the state of the economy, which is why Biden has no choice but to run on his record, according to Doug Sosnik, former longtime senior advisor to President Clinton.
Biden's forceful embrace of his economic record signals that the White House is confident Americans will soon begin to see the effects of his efforts.
"There is plenty of time for the public to begin feeling the impact of his accomplishments," Sosnik said. "He just needs to stay with a sharp and repetitive message."
