Former Obama Economist Critiques Bidenomics for Falling Short of Ambitious Objectives

Jason Furman, who served as an economist under President Obama, has publicly expressed his dissatisfaction with the economic policies of President Joe Biden. In a recent op-ed featured in Foreign Affairs Magazine, Furman characterized the Biden administration’s approach as a significant disappointment, stating that it has not met the ambitious goals it set out to achieve.

Furman argued that Biden’s economic strategy, described as a post-neoliberal shift, promised transformative changes reminiscent of Franklin Roosevelt’s era. However, he believes these expectations have not materialized. He conceded that while there were some impressive macroeconomic indicators, the overall economic recovery remained uneven. Inflation, he noted, was partly a consequence of the administration’s own policies.

Economic Policies Under Scrutiny

Furman has consistently criticized various components of Biden’s policy framework. Notably, he has taken issue with the president’s student loan forgiveness initiative and also questioned Vice President Kamala Harris’s proposals on price controls aimed at curbing inflation.

Furman wrote, “Biden’s supporters and policymakers, particularly those who have dismissed the impact of inflation, have suggested that voters fundamentally misunderstand economic realities or attributed the losses in the 2024 elections to broad anti-incumbent sentiments.”

Failure to Address Inflation

The economist emphasized that Biden’s overarching agenda, dubbed ‘Build Back Better,’ has not effectively tackled the pressing concerns of voters regarding inflation. He suggested that the inflation created by global factors alone might have jeopardized any incumbent’s re-election chances. Coupled with unnecessary domestic spending, this situation exacerbated inflationary pressures.

“Minimizing the significant suffering inflation has caused and promoting an illusory boom in infrastructure and manufacturing surely did not aid Democrats in the long run,” Furman continued, highlighting the disconnect between policy announcements and public sentiment.

Reflections on Biden’s Administration

In conversation with Politico, Furman elaborated on the timing of his critique, signaling the importance of assessing the administration’s policies as they came to a close. “I noticed many commentators were not deriving the correct lessons from the past four years. Many attributed challenges solely to bad luck and global trends, while overlooking the underlying economic decisions made at home,” he remarked.

Infrastructure Program Deemed Ineffective

Furman’s evaluation of Biden’s infrastructure policies was particularly sharp. He indicated that despite the substantial financial investment, the program’s execution has been hindered by excessive requirements that ultimately escalated project costs. “The influx of funding made it increasingly difficult to complete projects, as demands drove costs up significantly, leading to a situation where substantive improvements were scarcely achieved,” he stated.

In his op-ed, Furman detailed specific failures of the infrastructure law passed in 2021, asserting that it failed to resolve the fundamental issues contributing to the United States’ persistent infrastructure affordability crisis. He remarked that the overall construction output experienced a decline rather than an uptick as intended.

Response from Biden’s Economic Team

In response to Furman’s criticisms, Jared Bernstein, a leading economic advisor to President Biden, rejected many of the assertions made in the op-ed. Bernstein highlighted that Furman’s claims are flawed and do not acknowledge contributions from the Council of Economic Advisers, which Furman would typically recognize as valid.

Bernstein maintained that Furman’s viewpoints undervalue significant economic achievements during their administration and dismiss crucial advancements in living standards for vulnerable families. He mentioned that political factors sometimes led to less-than-ideal policies, but asserted that the team made the most out of the resources available.

Acknowledgment of Mistakes

Despite defending the administration’s record, Bernstein conceded that mistakes were made throughout their tenure. In further commentary, he noted that by publicly airing grievances, Furman provides ammunition to critics who may leverage these discussions against the Biden administration.

Meanwhile, the Biden team has opted not to comment on Furman’s recent op-ed, suggesting a careful approach to public discourse surrounding these critiques.

Looking Ahead

As economic challenges persist, the discourse surrounding Bidenomics will likely evolve. The Biden administration, along with its critics, will need to address the ongoing impact of inflation and other pressing economic concerns as they prepare for future electoral contests.

Furman’s analysis highlights the complexity of the current economic landscape and raises essential questions about policy effectiveness. As the government navigates these challenges, the lessons drawn from past experiences will be crucial in shaping its approach moving forward.