For weeks, we’ve seen economic numbers like inflation and unemployment trending in the right direction. The latest Consumer Price Index shows inflation reached the lowest level in three years.
But prices are still high. Grocery costs, for example, rose just 0.1% in July, but food prices today are still 21% higher than they were three years ago.
Another positive economic indicator out this week is the record number of small business applications received during President Biden’s administration — 19 million, the highest for any presidential term.
Those applications are just a first step, and a far smaller number of new small businesses, 1.3 million, actually opened their doors. But that number is also a record, and one the White House says is key to helping the middle class.
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“The creation of new businesses is really the lifeblood of our economy. That’s what generates value in communities. That’s what builds wealth for families, you know, and intergenerational wealth for families,” said Jon Donenberg, the deputy director of the White House’s National Economic Council.
But despite the positive economic reports, President Biden and others in the federal government recognize families are still struggling to make ends meet.
“At the end of the day, that is really the economic statistic that matters: It’s how much money do you have in your wallet, how much money is in your bank account, and that’s what’s coming in in terms of your wages, and what’s going out in terms of your costs. And I think this administration really has a strong record on those issues,” Donenberg said.
The Biden administration says efforts to lower prescription drug costs, eliminate junk fees and stop unfair rent increases are all aimed at helping ease the financial burdens Americans are facing.
The economy has been a big focus on the presidential campaign trail. Former President Donald Trump blames the Biden administration for the high prices we face today, and his economic campaign promises include ending taxes on tips.
Vice President Kamala Harris is due to unveil her own economic plan this week. She already said she supports ending taxes on tips, but with an income limit. Her plan is expected to focus on building up the middle class and bringing down prices.
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