Ahead of Biden visit, data on the economy is promising but public largely remains skeptical

 

MILWAUKEE (CBS 58) -- When President Joe Biden touts his administration's handling of the economy Wednesday, he'll do so in a state where many voters are skeptical, despite big-picture data that encourages economists.

Press notices from the White House this week have stated the president will speak about the impact "Bidenomics" have had on the country's recovery from an economic slide caused by the COVID-19 pandemic.

Rebecca Neumann, an economics professor at UW-Milwaukee, said she would describe the economy as currently "doing quite well." She cited a labor force participation rate that has nearly returned to pre-pandemic numbers and an unemployment rate, that at 3.7%, is also holding steady near the pre-pandemic rate of 3.5%.

"That's quite a low unemployment rate," Neumann said. "And that's come down quite a bit since the COVID shock."

Yet, polling has shown Wisconsin voters aren't as optimistic in their outlook. A November survey from the Marquette Law School found 57% of Wisconsin voters disapproved of Biden's performance, compared to 42% who said they approved.

In June, 53% of Wisconsin voters said they disapproved of Biden's performance while 45% approved of the job Biden was doing.

For Desiree Shaw, who's been running a small Milwaukee baking business called Desiree's Sweet Treats for two years, her pessimistic view of the economy stemmed from the higher prices she's paying for ingredients.

"Just about everything has went up as far as eggs, flour, sugar," Shaw said. "Items I need to bake my items -- has went up tremendously."

Shaw's goods are on display at Sherman Park Grocery, which has been open for a little longer than one year. Co-owner Maurice "Moe" Wince said in a business where profit margins are already thin, he's trying to keep prices comparable to large grocers knowing shoppers are already frustrated by higher costs across the board.

"Those challenges are then passed on to our customers," Wince said. "Which makes it almost difficult, if you will, for our customers to walk through those doors and literally have enough to purchase fresh fruits and vegetables and affordable groceries."

Neumann said inflation is a valid concern, especially for working-class families who see a larger portion of their income cover the higher costs of essentials like groceries.

While the current inflation rate of 3.2% is closer to the Fed's target of 2%, the lingering effects from the spike that covered much of 2021 and 2022, when the inflation rate peaked at 8.9%, have left prices considerably higher than they were pre-pandemic.

She noted real wages are rising as a whole, but just how much someone's income has grown can vary quite a bit.

"The wage gains may be spread across different people differently," Neumann said.

Both Shaw and Wince said if the federal government was aiming to make life easier for small business owners, they best thing it could do is make more funding available and simplify the process of applying for that aid.

"Making the system that's already set up capable of navigating it through," Wince said. "Helping us as minority or potential minority businesses, help us navigate through the thicket of it."