Bidenomics Credited For Stronger-Than-Expected GDP Growth By Investment Firm Morgan Stanley

President Joe Biden's Infrastructure Investment and Jobs Act, often called "Bidenomics," may be helping the US out of an economic crisis. Investment firm Morgan Stanley agrees.

Bidenomics has brought about infrastructure spending and manufacturing incentives, and these have made Morgan Stanley project a 1.9% GDP growth for the first half of this year, which is bigger than the previously projected growth of 0.5%,

According to The Morningstar, Ellen Zentner, chief US economist for Morgan Stanley, stated that the Infrastructure Investment and Jobs Act is already "driving a boom in large-scale infrastructure," She added that "manufacturing construction has shown broad strength."

"The narrative behind the numbers tells the story of industrial strength in the US," wrote Zentner. as her firm more than doubled the original estimate for GDP growth in the fourth quarter, to 1.3% from 0.6%.

President Joe Biden Continues To Tout Bidenomics Success

Morgan Stanley's positive economic outlook for the US came at an important time for Biden, who is currently running for re-election. He is currently touring the country and touring his economic success, which includes reducing inflation rates and generating more jobs.

"Together we are transforming the country, not just through jobs, not just through manufacturing, but also by rebuilding our infrastructure," said the president last Thursday during a visit to a Philadelphia shipyard.

CNBC pointed out that the term "Bidenomics" was originally used by Republicans as a jab at the president's economic policies, but the White House has since co-opted the term as a badge of honor and used the term to call its brick-and-mortar economic growth formula.

While Republicans, including House Speaker Kevin McCarthy, still say that "Bidenomics" is an "economic disaster where government causes decades-high inflation," economists and financial experts have pointed out that the economy has been improving since Biden first took office.

"This report confirms what we've long said: Our strong and resilient economy is Bidenomics in action," said White House assistant press secretary Mike Kikukawa. "The president's economic agenda is spurring investments in manufacturing and infrastructure that are creating jobs and supporting workers."

Bidenomics May Have Prevented a Recession

Wall Street also seems to be coming around Bidenomics, with leading economists for big banks like Goldman Sachs and JPMorgan Chase already lowering their odds of an imminent recession. They say that the resilient labor market and steady household finances right now are showing the US "can weather the storm as the Federal Reserve continues to drive up borrowing costs."

Goldman Sachs's Chief US economist, David Mericle, stated that he feels better because of the "prospects for achieving a soft landing" for the economy.

Meanwhile, Jamie Cox, a managing partner at the advisory firm Harris Financial Group, stated in a recent interview, "The most anticipated recession in modern history may not come."

Wall Street is also becoming more and more confident these days, with the S&P 500 climbing to over 16% since the year started, according to Politico. Consumer confidence is also beginning to improve, with spending on new construction also rising. This means that homebuilding is recovering, and this may be able to relieve pressure on rents and cool inflation.

As for unemployment, the Labor Department's jobs report released last month showed that the unemployment rate fell slightly in June to 3.6%. Payrolls also increased by around 225,000.

This article is owned by Latin Post.

Written by: Rick Martin

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