The White House’s top economic adviser on Sunday said it is “very difficult” to say whether the US is in trouble because the economy is going through good times and bad times.
Jared Bernstein told “Fox News Sunday” anchor Shannon Bream that while inflation has been at a 40-year low, there hasn’t been much job growth and consumer spending.
“It’s hard to say we’re in trouble when you look at the wages and benefits we’ve seen,” he said. “Right now you’ve got inflation – a big time in this economy, not taking anything away – but you’ve also got a very powerful tool that’s expanding the consumer base.”
High gas prices and inflation have plagued Americans this year and President Biden’s approval rating has plummeted as a result.
Fears of a recession spread after the stock market entered bear market territory and global gross domestic product (GDP) fell in the first half of the year, with the second quarter expected to be negative as well.
More than half of Americans already believe the US is already in trouble, according to a poll last month.
On Sunday, Bernstein told Bream that the US has reduced its budget debt by $ 1.7 trillion this year mainly due to the increase in income, which he said increased by 26 percent.
The economic adviser said the increase in income shows that the economy is still in good shape, as well as a decrease in unemployment and high spending by consumers.
“How do we get the money that’s growing fast in the economy that’s taking the forms that we’ve been talking about?” he asked. “It should be a much stronger economy than most people say, and it is.
Bernstein added: “There is no disputing that these high prices are unacceptable, but the basis is an economy that has the strongest labor market in a generation.”