Speaker 1: Biodynamics continues to see a very hot economy and I will place credit and lay blame
regardless of who is in power based on what we understand about how economies work.
What do I mean? Well, we have an incredible headline, particularly if you are Joe Biden,
particularly as we understand that so much of a reelection campaign is
based on the perception about the state of the economy, of the voters. And along those lines,
we learned this morning that in the second quarter, the United States grew in terms of GDP,
33% faster than expected. Q2 GDP coming in at an annualized pace of 2.4% growth.
The expectation was originally 1.8%. Remember that Q1 was 2%. Now 2.4%. This is very good
news based on how economies measure, how they are doing. We now have record low unemployment,
record wage growth. Record job creation, declining inflation for years now to the lowest point,
dating all the way back to April or March of 2021. More lowest point in terms of inflation in more
than two years. Stock market near record highs and now GDP, 33% higher than expected. So how
much of this is thanks to Joe Biden? Well, you all know that this is not a show where we just
play political games and throw political footballs when it comes to economic numbers. I will tell you
how much presidents control and how much they don't control. And many of the factors related
to GDP are global issues or systemic issues beyond the control of the president. However,
there are some factors that presidents do control. Presidents control fiscal policy,
including government spending and taxation. The Inflation Reduction Act, which was put forward
by Joe Biden and passed ultimately is a factor in what we are now seeing. That is something that is
on the Biden side, the regulatory environment. Presidents have influence over the regulatory
environment and that has an impact on the economy. Trade policy Presidents significantly shaped trade
policy and trade agreements. Imports, exports. And this relates to GDP growth. Monetary policy. You
know, this is one of those in betweens. The Federal Reserve, which sets interest rates,
does operate independently. But the president can appoint board members who influence the monetary
policy. So monetary policy is always strictly speaking, outside of a president's control.
In reality, it's sort of a slight control infrastructure investment. That is very much
something that Joe Biden has participated in. Then you have factors that presidents do not
control. And there there are many and they are significant global economic conditions,
including, for example, natural disasters or pandemics and these sorts of things. The global
economy is very much interconnected. And so when we look at the data, we see, yes, inflation is
down in the United States and inflation is down in all of the Western wealthy nations. However,
it is down more in the United States than in many of those nations. So we would say the general
global economic conditions have nothing to do with Joe Biden. The particulars may, for example,
the Inflation Reduction Act. Technological advancements that impact the economy and GDP
president has almost nothing to do with that. Business cycles. There are business cycles,
recessions, expansions influenced by so many different factors, and that includes consumer
sentiment, business investments, market dynamics. Presidents really don't have anything to do with
that. Demographic changes. This includes population trends, birth rates, immigration.
Presidents do indirectly control immigration. They control less of a desire for immigration.
They also control less of circumstances in other countries from which people might immigrate to the
United States. Presidents don't really control those things directly. Commodity prices rate.
Oil metals. Such significant factors impacting the global economy. American president has very little
control over that. So big picture. The claims that Biden's policies would destroy the economy.
Do I sound like Tucker Carlson yet? Very much wrong. Very much wrong. We are seeing
an incredibly robust economy. Does the economy still have the systemic problems that pre-date
Joe Biden and pre-date Trump? Of inequality of 40% of Americans can't meet an unexpected $400
expense. Of course, of course. We still have all of those things by the metrics that are
accepted to measure how an economy is doing. The Biden economy is doing extraordinarily
well. This is politically a very good thing for Joe Biden and politically not a good thing for
those seeking to challenge the presidency. We will continue to follow the numbers.