Known for her oblivious remarks about the average American, Treasury Secretary Janet Yellen is now saying that the economy is “strong,” despite low-income Americans struggling. In an interview on Monday with CNBC host Sara Eisen, Yellen stated that the economy is on the right track, even though she did acknowledge that lower-income Americans are struggling.
“I think that we’ve got a good, strong economy,” Yellen told Eisen. “We’ve got very strong domestic demand. Consumers are holding up. Some low-income consumers are perhaps exhausting their buffers of saving[s] that they built up during the pandemic, we’re seeing a little bit more distress at the household level there.”
“But, generally, households are in very good financial shape,” she continued. “Our financial system is generally quite strong. I don’t — things can always happen. There’s always recession risk. Geopolitical developments could create risk to our economy. But I think we’ve got a good, strong economy that’s on a solid track.”
While Yellen seems to think so, most Americans disagree with her. According to a New York Times poll last month, only 26% of Americans agreed with Yellen, describing the economy as “excellent or good.” Meanwhile, 51% of Americans said the economy was “poor” and 23% said it was “fair.”
The Biden administration continues to brag that most Americans are better off financially thanks to “Bidenomics,” but most Americans reported not being better off.
BIDENOMICS: Nearly two-thirds of Americans across seven decisive battleground states say the strength of the economy under Biden is "not so good" or "poor" pic.twitter.com/Z7oN5DD5aH
— RNC Research (@RNCResearch) April 4, 2024
A Wells Fargo Money Survey released at the end of February showed that two-thirds of Americans have decreased their spending due to the current economy. Most have to work a second job, which still isn’t enough to help.
“It’s also striking that more than half of Americans—57%—admit needing a mental reset when it comes to their money, with many feeling embarrassed, judged and overly focused on money,” said Michael Liersch, the head of advice and planning for Wells Fargo in New York City.
Those on fixed incomes are also finding it difficult to manage their money.
“Now, because prices have gone up dramatically – for bread, gas, everything – I run out of money each month, so I end up paying for necessities with my credit card,” said Robin, a 70-year-old retired teacher from California who lives off of the $14,000 she receives from Social Security.
“This has been going on for at least six months,” she continued. “I’m so worried. How will I ever pay this back when everything costs more and more?”
According to a CBS poll released last month, the majority of respondents reported the economy would be better off under the leadership of former President Donald Trump. The poll showed that 65% of respondents believed that the economy was good under Trump, while 38% believed that Biden’s economy was good.
Looking forward to the 2024 presidential election, 55% believe that Trump will do a better job at handling the economy, while only 33% believe that Biden will be better at handling the economy.
As many Americans struggle with finances — juggling bills, groceries and gas — Yellen thinks that the economy is good. It is hard for the economy to be in good shape as many Americans live paycheck to paycheck. Like her boss, Yellen might believe that the polls are not accurate.
Yellen also said that the economy was good two years ago as well. She is either clueless or in denial.
Janet Yellen thinks the US Economy is doing “very well”.
— Benny Johnson (@bennyjohnson) October 11, 2022
