Jason Furman, a former Democratic economic adviser, critiques the Biden administration's economic strategies in a recent Foreign Affairs essay. He argues that the administration's emphasis on running the economy hot led to elevated inflation and stagnant purchasing power for American workers. The push for manufacturing revival was undermined by supply chain issues and rising costs. With high deficits and Federal Reserve rate hikes further complicating the situation, the share of manufacturing jobs has not improved, mirroring trends from previous administrations.
In a scathing new essay on what went wrong with Biden-era economic policy, longtime Democratic economic adviser Jason Furman argues that the last administration was too quick to toss aside traditional economic orthodoxy.
The administration's willingness to run the economy hot - to risk higher inflation in exchange for a turbo-charged rebound from the pandemic - turned out to be a bad bet.
High deficits, and the Fed's rate hikes meant to fight inflation, made it more expensive for companies to borrow and drove up the dollar, making U.S. manufacturers less competitive.
The share of workers in manufacturing has continued to fall at the same rate as it did during the Obama and first Trump presidencies.
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