Recently Joe Biden made an appearance on a late-night show, “Jimmy Kimmer Live!” During the conversation, Biden claimed that the US has the ‘fastest economy in the world. The claim is too big in itself, and that too when made on national television.
Here, we will take you through a factual investigation on the same and will introduce you to the growth of the US over the years.
True or False?
Now, to put it in a single sentence, Biden’s claim is completely false, and we are not just saying it; we have factual data that proves it. If we look at the stats, US economic growth rate was higher by 5.7%, which we agree is far more than many countries across the world. But does that mean it is the fastest of all? Absolutely not! Over 50 countries across the globe had a higher economic growth rate than the US had. Even though there is significant growth here, the US is not the fastest growing economy in the world.
What Biden Actually Meant?
Now, let us make it clear that we are not accusing Biden of stating a false statement. But we believe he missed a word or two. What we actually mean here is that when Biden said that the US is the fastest-growing economy in the world, there is a possibility that he was comparing the country’s recent economic growth rate with what the US has seen in decades.
This became clear when an official from the White House stated the same fact. He threw light upon the fact that the 5.7% growth that the country has seen has been the fastest since 1984. Now that the president repeated himself thrice on the show, the fact came into the spotlight.
Growth in Different Sectors
Now that the US is rising like a phoenix after the pandemic hit the country pretty well let us see how the government predicts growth in various sectors.
In a meeting of the Federal Open Market Committee in December 2021, the officials predicted the GDP growth in 2022 to be somewhere around 4% in 2022. However, in another meeting in March, another estimation was set at a 2.8% hike in GDP. In addition to that, the figures predicted for 2023 and 2024 were 2.2% and 2%, respectively. These figures remain the same even after the meeting in March.
The country had come a long way since the unemployment rate hit 14.8% after the pandemic when many companies had to go down-sizing. During the meeting in March, Fed predicted the unemployment rate of the country to be 3.5% in 2022. Any rise in this figure is expected to be in 2024 to 3.6%.
The Bureau of Labour Statistics estimated job opportunities. In a report published this year, they expect that the country will have an increase in the available employment opportunities by 11.9 million during the span of 10 years, 2020-2030. The bureau expects that the healthcare and hospitality sector will shed more jobs in comparison to other sectors.
It is estimated that the inflation rate of the country will be around 4.1% this year and will further take a huge drop to 2.6% in 2023 and 2.3% in 2024. The country’s target, however, is to hit 2% soon.
Another important factor affecting any country’s growth rate is its weather conditions. Keeping a check on the country’s climate change, the Federal Reserve is concerned. It might give significance to the country’s GDP growth. The country has been facing natural disasters on a larger scale for the past couple of years, and the country has seen evident effects of the same on the overall GDP rate.
In 2020, the US had to face global damage costing USD 210 billion due to hurricanes, wildfires, and floods and over USD 166 in 2019.
Oil and Gas Price
Global warming has been playing a major part in the production of energy resources for the country. Eventually, there has been a significant hike in the oil and gas price. According to the EIA, the oil price in the US can hit USD 170 per barrel by 2050. However, this figure might change depending on how the people of the country and the government works on global warming.
The US has a mixed economy, and therefore the growth of the country depends on the private and government sector equally. When Biden made his statement nationally on a live television show, he missed some facts. The country has seen its fastest economic growth, not in the world but in comparison to itself. This blog provides you with not just facts that prove proof against Biden’s statement, but we have also taken you through the various sectors in the country that affects its growth and what is to be expected in the next couple of years.