WASHINGTON (AP) – President Joe Biden said on Thursday that the American people are “very, very depressed” after two tumultuous years with the coronavirus pandemic, the volatility of the economy and rising US prices. gasoline that are affecting family budgets. But he stressed that a recession “was not inevitable” and maintained the hope of giving the country a greater sense of confidence.
Speaking to The Associated Press in a 30-minute interview with the Oval Office, the president emphasized the mistreated economy he inherited and the persistent psychological scars caused by a pandemic that altered the sense of identity of the Oval Office. people. He blamed Republican lawmakers’ claims that last year’s COVID-19 aid plan was entirely to blame for inflation reaching a 40-year high, and called the argument “strange.”
As for the general American mentality, Biden said, “People are very, very low.”
“His need for mental health in the United States has skyrocketed because people have seen it all annoying,” Biden said. “All of them have been upset. But most of it is the consequence of what happened, what happened as a result of the COVID crisis.”
This pessimism has spread to the economy, as record bomb prices and persistent inflation have jeopardized the ability of Democrats to remain in the House and Senate in the midterm elections. Biden addressed warnings from economists that the fight against inflation could lead the United States into recession.
“First of all, it’s not inevitable,” he said. “Second, we are in a stronger position than any nation in the world to overcome this inflation.”
As for the causes of inflation, Biden showed a certain defensive attitude in this regard. “If it’s my fault, why is it happening in every other big industrial country in the world that inflation is higher? You ask that? I’m not being a wise guy,” he said.
The president’s statement appeared to be about rising inflation around the world, not necessarily if countries had higher rates than the US. Annual inflation in Japan, for example, has risen in recent months, although it is still at an annual rate of 2.4%, according to the Organization for Economic Co-operation and Development.
The president said he saw reason for optimism with the 3.6% unemployment rate and the relative strength of the United States in the world.
But the restoration of confidence has so far eluded Biden, whose approval ratings have been steadily declining as it has lost support among Democrats and has little evidence that it could restore a sense of bipartisan normalcy. in Washington.
Biden’s oval office is full of portraits of presidents facing crises that have endangered the country, and the president acknowledged that there were parallels with his own situation. An image of Franklin Delano Roosevelt hangs over his fireplace, a prominent place because historian Jon Meacham told Biden that no president had come to power with the economy in such dire circumstances. There is also a painting by Abraham Lincoln, who became president with a brutally divided nation and at the gates of the Civil War.
However, Biden’s remedy is not so different from the diagnosis made by former President Jimmy Carter in 1979, when the US economy was paralyzed by stagnation. Carter said then that the US was suffering from a “crisis of confidence” and “the erosion of our confidence in the future threatens to destroy the social and political fabric of America.”
The president said he wants to give the United States more impetus, strength and courage.
“Have confidence,” Biden said. “Because I’m confident. We’re better positioned than any country in the world to own the second quarter of the 21st century.”
Biden’s bleak assessment of the national psyche comes as voters have deteriorated due to their job performance and the country’s leadership. Only 39% of American adults approve of Biden’s performance as president, according to a May poll by The Associated Press-NORC Center for Public Research, down from already negative ratings a month earlier.
Overall, only about 2 in 10 adults said the U.S. is heading in the right direction or that the economy is good, both below about 3 in 10 in April. These falls were concentrated among Democrats, with only 33% within the president’s party saying the country was going in the right direction.
Biden said Republican social policies contributed to public concerns. He suggested that GOP lawmakers could face medium-term consequences if the Supreme Court overturns Roe v. Wade, possibly removing national protections for access to abortion. Voters will consider the “failure of this Republican Party to be willing” to respond “to the country’s basic social concerns,” the president said.
The president outlined some of the difficult decisions he has faced, saying the United States had to face Russian President Vladimir Putin to invade Ukraine in February, although harsh sanctions imposed as a result of the war have fact that gas prices rise, creating a political policy. risk for Biden in an election year. He called on oil companies to think about global short-term needs and increase production.
Asked why he ordered financial sanctions against Moscow that have disrupted global food and energy markets, Biden said he made his calculation as commander-in-chief rather than as a politician thinking about the election.
“I’m the president of the United States,” he said. “It’s not about my political survival. This is what is best for the country. It’s not a joke. It’s not a joke. So what’s up? What if the strongest power, NATO, the organizational structure we have created, moves away from Russian aggression?
Biden ruled out the possibility of chaos in Europe if a smooth Russia continued to plunge deeper into the continent, China was encouraged to take over Taiwan, and North Korea became even more aggressive with its ambitions. nuclear weapons.
Biden renewed his claim that large oil companies have benefited from higher prices without increasing production as much as they should be. He said companies need to think about the world in the short term, not just their investors.
“Don’t reward yourself,” he said.
Consumer prices have risen 8.6% in the last year, the sharpest rise in more than 40 years. Republican lawmakers have said Biden’s $ 1.9 trillion coronavirus relief package started a spiral of price increases.
The president said there was no “zero evidence” for the claim, noting that other countries have suffered higher prices as economies reopened and people were vaccinated. However, Biden acknowledged Treasury Secretary Janet Yellen’s statement that spending had a limited inflationary effect.
“You could argue if it had a marginal and minor impact on inflation,” he said. “I don’t think he did. And most economists think he didn’t. But the idea that caused inflation is weird.”
However, high inflation has created an enigma for Biden. He prioritized recovering millions of jobs and has seen the unemployment rate return to pre-pandemic levels. The Federal Reserve on Wednesday raised its benchmark interest rate, hoping to slow the economy and reduce inflation to its 2% target rate.
The tightening of the Fed’s policy has led to the collapse of financial markets and has led many economists to warn of a possible recession next year. The president encouraged Americans to stay patient.
“They shouldn’t believe a warning,” he said. “They just have to say, ‘Let’s see. Let’s see which one is right. “
The president is still trying to direct his internal agenda through Congress, after a previous iteration last year failed to clarify a 50-50 Senate. Biden said “I think I have the votes” to reduce the prices of prescription drugs, reduce utility bills for families with tax incentives and put a 15% minimum tax on corporations. He said his plans would reduce spending for many Americans, although the measure would be reduced based on previous intentions to expand the children’s tax credit, the universal nursery and other programs.
“I will be able to get, God willing, the ability to pay for prescription drugs,” Biden said. “There is more than one way to reduce the cost to workers.”
And then, in recognition of the political constraints he faces, Biden added, “I can’t do everything.”