For Biden’s ratings to go up, it’s obvious what needs to go down
U.S. President Joe Biden gives remarks about economic growth, job creation, and deficit reduction at the Roosevelt Room of the White House, Washington, U.S.A, May 4, 2022.
Evelyn Hockstein | Reuters
Today, fewer small-business owners approve of Joe Biden’s presidency than they did a year ago. The latest survey shows that small-business owners are more likely to dislike Biden than approve. CNBC|SurveyMonkey Small Business SurveyThe survey was done April 18-25 between 2,027 owners of small businesses in the U.S.
Biden’s approval rating among these people hasn’t dropped in the past three quarters. But, very few small business owners are particularly concerned about politics during this time. For the third consecutive quarter, Main Street is worried about inflation. According to this survey, around four out of 10 small-business owners (38%) consider inflation the greatest threat to their businesses right now. This is at least double the percentage who identify supply chain disruptions (19%) or labor shortages (13%), and just 13% for Covid-19 (13%).
A third of small-business owners report that they currently face rising supplies costs. This number has remained steady since the fourth quarter 2021.
42% of those who are experiencing rising costs say that they have to raise prices in order to meet the demand. Another 35% plan to hike their prices if costs keep increasing.
24% of those affected by rising prices are still absorbing them. Because small businesses lack the power to set prices, they may not be able to keep up with inflation in all areas.
The danger of inflation spiraling out of control is its speed: As production costs rise, so do prices at subsequent stages. Companies are also forced to increase wages as prices rise. However, consumers can spend more money because of higher wages.
However, Main Street won’t be accepting of price gouging. It seems that small businesses are reluctant to profit from the current inflationary atmosphere by passing higher prices to their customers. Two-thirds of small business owners believe that now is not a good time for raising prices.
Small business owners cannot fight inflation by themselves. It’s in the hands of the Federal Reserve, the Biden administration and other policy makers to make changes that will reduce the rate of price rises. Few Main Streeters are pleased with the responses so far.
Just 27% of small-business owners are optimistic about the Federal Reserve’s ability control inflation this quarter. This is almost identical to last quarter’s 28%. Jerome Powell, the Chairman of the Federal Reserve announced Wednesday that the Fed would increase interest rates by half a percentage point –the first such step taken since the recent inflation run began last year.
Not coincidentally, right as inflation began rising last fall, small business owners’ approval of the way Joe Biden is doing his job as president sank – and it has stayed there ever since. Biden’s approval rating in small businesses was 42% for the three-quarters of his presidency. This is not a bad result, considering the fact that the Republican Party has a greater majority than the Democrats.
Biden has seen his approval rating drop to the lower 30’s in recent quarters. In addition, fewer small-business owners now approve of Biden than ever. According to other polls, Biden should control inflation to increase his job approval.
Just like our quarterly survey shows, Biden’s approval rating in public opinion polling began falling last fall as inflation was rising. FiveThirtyEight’s presidential approval tracker shows August 29th, 2021 as the point at which Biden’s disapproval has exceeded his approval in polling averages. However, prices rose at a rate that was not yet apparent at that point. breaking records.
A new survey from the Washington Post and ABC NewsBiden’s approval of his job has increased slightly between February and April, to 42% in total. However, this number still falls well short of the 52% highest mark Biden earned in the April Washington Post/ABC News Poll.
Biden’s latest poll was particularly important because it asked for information about presidential approval. Although his approval rating has fallen to 51 percent, the majority of Americans (51%) still approve of Biden’s handling of the pandemic coronavirus. We are much less satisfied with his handling the Russia/Ukraine crisis, his ability create jobs or overall economic management. Only 28% of those surveyed approve of his handling inflation.
Biden’s current situation is a reminder that Presidents are often credited for creating a strong economy, while they get blamed for making it a weaker one in times of prosperity. Biden will have to keep the issue of inflation in his head across the entire country. This includes Main Street.