As future changemakers, voters, and leaders, it’s important for Gen Z to understand the campaign initiatives and plans of the candidates before heading into the polling places for the 2024 presidential election. During President Biden’s time in office, he’s announced plans to combat the current economic state, with the most recent coming with its own nickname: “Bidenomics.”
Though it started as a name from media outlets, President Biden took full ownership of “Bidenomics” (Biden and economics) and put it at the forefront of his 2024 presidential campaign as he outlined his economic vision in a speech in Chicago on June 28. From taxing the wealthy to goals for a better workforce, here is everything you need to know about the plan and how it may impact Gen Z.Â
What is “Bidenomics”?Â
The name is just as it sounds: Biden and economics. In his June 28 speech where he laid out his economic vision at the Old Chicago Main Post Office, President Biden attributed news outlets as the source of this nickname, but now is embracing it as the benchmark for his economic initiatives. So, what exactly is it?Â
At the core of Bidenomics is rejecting trickle-down economics, former President Ronald Reagan’s key economic policy. Trickle-down economics revolves around cutting taxes for wealthy people and large corporations, with a goal of economic growth. In his speech, Biden shared that during his time in office, he has aimed to steer away from trickle-down economics, and will continue to do so, as he claims it failed the middle class and the nation’s infrastructure. Essentially, Bidenomics is the counterplan to trickle-down economics.Â
The economic theory is said to grow the economy from “the middle out and bottom up.” Bidenomics comes with three main goals: making smart public investments in America, empowering and educating workers to grow the middle class, and promoting competition to lower costs and help entrepreneurs and small businesses thrive. The funding stems from taxing the wealthy and large corporations.Â
Biden said in his June 28 speech that he believes his economic plan can “restore the American dream” and is a plan for the future. So looking ahead, how will Bidenomics impact the future of Gen Z?Â
What will Bidenomics look like for Gen Z?
If the plan were to be successful, Gen Z would be impacted in the workforce and their education. The goal to empower and educate workers includes jobs that don’t require four-year degrees. The plan attempts to create more jobs for members of the workforce, both with and without a formal college education, and guide them. Bidenomics also aims to create more jobs with better pay, better benefits, and better schedules. This will directly impact Gen Z as they are increasingly seeking more long-time and full-time roles. Bidenomics would change the workforce for Gen Z by making jobs more easily available than in the current labor market. According to a GOBankingRates survey, 12% of Americans are unemployed, with Gen Z making up 15% of that number.Â
If Bidenomics is successful in lowering costs and increasing wages by promoting healthy competition across sectors, Gen Z would be facing an economic state different from the one they are living in now. Consumers have been faced with inflation for much of Biden’s presidency. In June 2022, inflation hit a peak of 9.1%, but in May 2023, the number was down to 4%. Though inflation has decreased, it’s still above the target of 2%. In order for a Gen Z future to flourish, there needs to be more jobs, better pay, and lower prices, which Biden hopes to achieve with Bidenomics.
How effective will Bidenomics actually be?
Though the economic theory sounds promising, many Americans are hesitant that it will be successful. According to a CNN poll done by SRSS in May, around 66% of Americans disapprove of how Biden has handled the economy. Additionally, other political figures think this economic theory could have pitfalls if the economy worsens. Federal Reserve Chair Jerome Powell said the U.S. economy has been resilient and a recession remains possible, but unlikely. However, Biden believes there will not be a recession. Gen Z and voters alike won’t be able to see the effects of Bidenomics until months to come.