Bill Clinton’s campaign hit the nail on the head when he coined the famous phrase in 1992: “It’s the economy, stupid.” That’s because the economy has consistently been ranked among the top – if not the top – issues during and after elections.
The current race is far from an exception, with nearly 90 percent of respondents to an ABC News/Ipsos poll in May indicating that the economy is the most important issue in determining who will get their vote in November. That means it’s almost guaranteed to be a major talking point during the presidential debate. CNN which takes place this Thursday (27), starting at 10pm (Brasília time).
President Joe Biden and former President Donald Trump have completely opposite views on the economy. And both will undoubtedly convince voters of their visions.
To understand what they’re saying (or if you’re trying to impress someone you’re watching the debate with), it’s good to make sure you understand the economy we live in right now.
The topics below are by no means an exhaustive list of everything that is happening in the US economy, and furthermore, everyone experiences it differently.
Unemployment
The country’s unemployment rate remained below 4% for 27 months, the longest such streak and equivalent to a period in the 1960s. That streak ended last month when the unemployment rate rose from 3.9% to 4%.
At the same time, the number of job openings in the US recently fell to a new three-year low, another sign of a cooling job market. This means job seekers may have a harder time getting hired.
In particular, the job market for recent college graduates has weakened. The unemployment rate for college graduates ages 20 to 29 is above 12 percent, up nearly 4 percentage points from a year ago, according to data from the Bureau of Labor Statistics.
Inflation
Inflation slowed more than expected last month, falling to 3.3% (from 3.4% in April). By comparison, this time last year it was 4% and two years ago it was 9%.
While discounts are starting to appear more at major retailers like Target and Walmart and fast-food giants like McDonald’s and Wendy’s, price cuts aren’t happening across the board.
This is because when inflation cools down, it simply means that the pace of price increases is slower. However, it does not mean that the real prices we pay for goods and services are lower than they were a year ago.
Housing
Home prices have reached record levels and have risen for 11 consecutive months as housing shortages persist.
That’s partly because many homeowners who got ultra-low mortgages during the pandemic don’t want to move and risk having to pay a much higher mortgage rate.
The average 30-year fixed-rate mortgage recently hit its highest level of the year. While it has started to fall, mortgage rates are still higher than anything seen in the decade leading up to 2022.
Mortgage rates are so high, in part, because inflation is above the Fed’s 2% target. As a result, the Central Bank has avoided cutting interest rates, which would otherwise make it cheaper to get a mortgage.
In turn, many potential homebuyers are renting for longer than they otherwise could, which is also driving up rents.
CNN Brazil broadcast
The debate between Joe Biden and Donald Trump takes place this Thursday (27) from 10 pm, Brasília time, and will be broadcast on CNN Brazil.
It will be possible to follow on channel 577 and on YouTube. CNN Brazil. The special programming starts at 9pm with “WW Special”.
Source: CNN Brasil
Bruce Belcher is a seasoned author with over 5 years of experience in world news. He writes for online news websites and provides in-depth analysis on the world stock market. Bruce is known for his insightful perspectives and commitment to keeping the public informed.
