EDITORIAL: Biden on economy: ‘Things are looking good’

The threat of a wipeout in the midterms has worried Democrats questioning their election strategy.

For months, President Joe Biden and his party have hammered Republicans as abortion extremists who seek to jail doctors and to force women into back alleys through an outright ban on the procedure. That is indeed a radical position, although one held by only a minority of Republicans. Meanwhile, a great many Democrats embrace their own form of extremism by advocating for abortion on demand up until birth. The American public prefers something in the middle, and elected officials in both parties should respect that.

But the Democrats have been so fixated on the subject that Mr. Biden last week revealed his priority after the midterms will be passage of a federal law legalizing abortion.

Yet polls repeatedly show that Americans care more about pocketbook issues and rising crime above all else. According to The New York Times, some Democrats now worry that their emphasis on abortion was a mistake. It’s no surprise, then, that Mr. Biden late last week suddenly shifted his attention to the economy. It’s a recalibration that Republicans should relish.

Armed with the news that the economy grew an unexpected 2.6 percent in the third quarter, the president on Thursday insisted the development was proof that “things are looking good,” The Associated Press reported. “For months, doomsayers have been arguing that the U.S. economy is in a recession. … But today,” the president said, “we got further evidence that our economic recovery is continuing to power forward.”

Note how Mr. Biden seeks credit for positive developments but points fingers at everyone else when it comes to inflation and gasoline prices.

The growth numbers are indeed welcome, particularly after two straight quarters of economic contraction. The stock market’s slight rebound is also a positive development. But it will take more than three months to indicate a trajectory change, and Mr. Biden offers U.S. voters nothing more than a continuation of the central planning, loose money policies that triggered economic malaise in the first place.

Despite the president’s cheery prognostications — has he been right about anything? — many obstacles remain, not the least of which is persistent inflation, now above 8 percent.

“Economic uncertainty is growing, and many economists are worried about the possibility of a recession in the coming 12 months,” The Wall Street Journal reported Friday. “They expect the Federal Reserve’s effort to combat high inflation by raising interest rates will further weigh on the economy.”

Indeed, the housing market has stalled as mortgage rates exceed 7 percent for the first time in 20 years. Consumer spending is sluggish, as is business investment. While the jobless claims remain low, expectations are that they will eventually rise as the Fed manipulates monetary policy to fight rising prices. That will be bad for workers who have lately enjoyed a variety of employment options.

In addition, Americans are putting off major purchases, according to surveys, and spending more on credit cards that now carry higher interest rates. Household budgets are in disarray as essential items — food, gasoline, etc. — cost far more than when Mr. Biden entered office less than two years ago. The national debt has exceeded $31.2 trillion, and the administration is bragging about a $1.4 trillion deficit for the current fiscal year.

Virtually all of these issues can be traced to bad decisions made by the current administration along with a compliant Democratic Congress. “This is what the policy mix of trillions in federal spending, heavy regulation, the threat of higher taxes and easy money has wrought,” the Journal editorial board offered in July. “Time to do the opposite.”

If Mr. Biden wants to talk about his economic record, Republicans should be happy to oblige — and to let voters know that they represent a market-oriented, low-tax alternative to the dismal status quo.