Morgan Stanley credits Bidenomics for ‘much stronger’ than expected GDP growth
Morgan Stanley credits Bidenomics for 'much stronger' than expected GDP growth CNBC
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Unexpected Surge in U.S. Economy Driven by Biden’s Economic Policies
Introduction
Morgan Stanley is crediting President Joe Biden’s economic policies with driving an unexpected surge in the U.S. economy that is so significant that the bank was forced to make a “sizable upward revision” to its estimates for U.S. gross domestic product.
Sustainable Development Goals (SDGs)
- Goal 8: Decent Work and Economic Growth
- Goal 9: Industry, Innovation, and Infrastructure
- Goal 11: Sustainable Cities and Communities
Economic Boom Driven by Infrastructure Investment and Jobs Act
Biden’s Infrastructure Investment and Jobs Act is “driving a boom in large-scale infrastructure,” wrote Ellen Zentner, chief U.S. economist for Morgan Stanley, in a research note released Thursday. In addition to infrastructure, “manufacturing construction has shown broad strength,” she wrote.
Revised GDP Growth Projections
- Morgan Stanley now projects 1.9% GDP growth for the first half of this year, nearly four times higher than the bank’s previous forecast of 0.5%.
- The analysts also doubled their original estimate for GDP growth in the fourth quarter, to 1.3% from 0.6%.
- Looking into next year, they raised their forecast for real GDP in 2024 by a tenth of a percent, to 1.4%.
Industrial Strength in the U.S.
“The narrative behind the numbers tells the story of industrial strength in the U.S,” Zentner wrote.
Political Implications
Morgan Stanley’s revision came at a pivotal time for the Biden White House. The president has spent the summer crisscrossing the country, touting his economic achievements. “Together we are transforming the country, not just through jobs, not just through manufacturing, but also by rebuilding our infrastructure,” Biden said Thursday during a visit to a Philadelphia shipyard.
Bidenomics and Public Perception
The White House has dubbed this brick-and-mortar economic growth formula “Bidenomics,” a phrase originally used by Republicans to jab the president, who co-opted the term as a badge of honor.
The latest CNBC All-America Economic Survey, released Thursday, found that just 37% of respondents approved of Biden’s handling of the economy, while 58% disapproved. Only 20% of Americans agreed that the economy was excellent or good, while a whopping 79% said it was just fair or poor, CNBC’s poll found.
Republicans have seized on voters’ economic pessimism to argue that Biden is ignoring everyday Americans’ ongoing challenges with high interest rates and inflation that has fallen some, but still sits above pre-pandemic levels.
Conclusion
With 16 months to go before Americans cast their ballots for president, Biden’s political fortunes, for the moment, appear to be improving along with the economy.
“This report confirms what we’ve long said: Our strong and resilient economy is Bidenomics in action,” White House assistant press secretary Mike Kikukawa said in an email to CNBC.
SDGs, Targets, and Indicators
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 8: Decent Work and Economic Growth
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 11: Sustainable Cities and Communities
The article discusses President Joe Biden’s economic policies and their impact on the U.S. economy. It specifically mentions the Infrastructure Investment and Jobs Act, which is driving large-scale infrastructure development. This aligns with SDG 9, which focuses on industry, innovation, and infrastructure. The article also mentions the strength of manufacturing construction, which is connected to SDG 8, which aims to promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. Additionally, the article mentions Biden’s focus on rebuilding infrastructure, which is relevant to SDG 11, which aims to make cities and human settlements inclusive, safe, resilient, and sustainable.
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries
- SDG 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all
- SDG 11.2: By 2030, provide access to safe, affordable, accessible, and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities, and older persons
Based on the article’s content, the specific targets that can be identified are SDG 8.1, which aims for sustained economic growth, SDG 9.1, which focuses on developing sustainable infrastructure, and SDG 11.2, which aims to provide access to safe and sustainable transport systems.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Gross Domestic Product (GDP) growth rate
- Investments in manufacturing and infrastructure
- Expansion of public transport
The article mentions a “sizable upward revision” to the estimates for U.S. GDP growth, indicating progress towards SDG 8.1. It also mentions the Infrastructure Investment and Jobs Act driving large-scale infrastructure development, indicating progress towards SDG 9.1. The expansion of public transport, which is mentioned as part of Biden’s focus on rebuilding infrastructure, indicates progress towards SDG 11.2.
4. Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries | Gross Domestic Product (GDP) growth rate |
| SDG 9: Industry, Innovation, and Infrastructure | 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all | Investments in manufacturing and infrastructure |
| SDG 11: Sustainable Cities and Communities | 11.2: By 2030, provide access to safe, affordable, accessible, and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities, and older persons | Expansion of public transport |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: cnbc.com
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