President Joe Biden made a confident attempt at defending his economic record this week, coining the term "Bidenomics" at a press conference, defined on Twitter as "growing the economy from the middle out and the bottom up, not the top down."
"It's an economic vision where we make smart investments in America, educate and empower American workers, and promote competition to lower costs and help small businesses," read the definition that Biden tweeted.
In another bold move, Biden claimed that despite ongoing recession fears, the U.S. had the strongest post-pandemic growth recovery in the world.
The Claim
During a speech at the Old Post Office in Chicago, Illinois, on June 28, 2023, President Joe Biden said: "Today, the U.S. has had the highest economic growth rate, leading the world economies since the pandemic. The highest in the world."
The Facts
Biden does not spell out the metrics he's referring to, but they aren't hard to find.
A White House briefing, published June 28, 2023, uses wording similar to the president's, stating: "America has seen the strongest growth since the pandemic of any leading economy in the world."
It provides a link to a U.S. Department of the Treasury blog with detailed explanations and figures supporting Biden's record on the economy, including growth compared to other nations.
Compared to other G7 economies (the seven largest "advanced" economies in the world), the U.S. has recovered the furthest, with the gross domestic product (GDP) now 5.4 percent above levels at the end of 2019.
It also states that it is only 1.4 percent below trends for growth that were predicted before the pandemic, ahead of all G7 economies, including in the Euro area.
The analysis is supported by research outside of the White House, too.
For example, research from the United Kingdom's House of Commons Library on International GDP comparisons, published June 14, 2023, shows some of the same figures. It reports, based on information from OECDstat and Eurostat, that the U.S. saw a 5.4 percent increase in GDP in the first quarter of 2021 compared with the final quarter of 2019.
Its research also includes statistics from the Organisation for Economic Co-operation and Development (OECD) and the International Monetary Fund, both of which predict that the U.S. will see a 1.6 percent growth in GDP in 2023, the highest among all G7 nations.
However, Biden's claim about relative performance prior to the pandemic does not paint a full picture of the nation's relative economic strength.
For example, according to the House of Commons Library report, its quarter-on-quarter GDP for Q1 2023 growth fell behind Japan and was only a percentage point ahead of the OECD and G7 average.
Elsewhere, an OECD report from June 2023 shows the United States is projected to see slower growth. India and China lead the pack, with respective estimates of 6 percent and 5.4 percent in real GDP growth for 2023.
While these nations may have significantly different economic policies, goals and societies, the pace of growth outside the G7 is worth noting, providing useful context to Biden's claim about America's relative economic strength.
Inflation remains far above pre-pandemic levels, at 4 percent for May 2023 (although that's the lowest figure recorded since April 2021), down 0.9 percentage points since April 2023.
It's not as if the picture is particularly grim, though. The Commerce Department released data on Thursday showing that the U.S. economy grew stronger in the first quarter of 2023, with the GDP increasing at an annual rate of 2 percent.
The figure exceeded government officials' estimate of a 1.3 annual growth rate, and it is more than the annual growth rate of 1.1 percent that the Bureau of Economic Analysis (BEA) reported earlier this year, The Hill reported.
So, on the whole, it does look like Biden has good grounds to make the claim he made about the U.S. economic growth performance. However, it's worth bearing in mind a few other statistics (such as inflation and different comparisons with other major economies) that might somewhat temper the president's conviction.
Speculation remains of an approaching recession, with Republicans and conservatives criticizing the Biden administration's economic policies. House Speaker Kevin McCarthy shared a redefined version of "Bidenomics" on Twitter that reads, "blind faith in government spending and regulations."
The Ruling
Needs Context.
Based on data on economic growth, measured by GDP, comparing Q4 2019 with Q1 2023, the U.S. has grown the most compared with other G7 nations, which (as well as sharing similar economic goals and policies) are among the largest and wealthiest economies in the world.
The U.S. is also projected to see 1.6 percent in growth this year, ahead of these nations, too.
While Biden has correctly quoted U.S. economic performance since the COVID-19 pandemic, it is not predicted to have the strongest growth this year out of all major economies.
FACT CHECK BY Newsweek's Fact Check team
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
