The Biden-Harris economy continues its decline as the 2024 presidential election draws closer. The Federal Reserve just reported that, in the third quarter, industrial production declined. So did capacity utilization, which fell two full percentage points below its long-term average. The output of business equipment declined, as did the production of durable goods: transportation, furniture and related products, motor vehicles and parts, electrical equipment, appliances, and components.
This was followed by a report from S&P Global, which noted the “sharpest fall in new orders since June 2023 … job shedding intensifies … price inflation quickens.”
Said S&P Global,
Central to the deterioration in business conditions was a sharply worsening demand environment amid a slowdown in the wider economy and uncertainty around the upcoming Presidential Election.
New orders decreased for the third month running, with the rate of contraction the sharpest in 15 months. New export orders were also down to a larger extent than in August, as geopolitical issues and demand weakness (notably in Europe) led to a fourth consecutive decline.
With new orders continuing to fall, manufacturers scaled back their production for the second month running. The pace of decline was modest, yet the fastest since June 2023.
Firms also reduced employment for the second consecutive month in September. The fall in staffing levels was the steepest since January 2010 if the initial pandemic period in 2020 is excluded.
Craig Williamson, the group’s chief economist, said: “Factories reported the largest monthly drop in production for 15 months in response to a slump in new orders, in turn driving further reductions in employment and input buying as producers scaled back operating capacity.”
Translation: Biden-Harris administration spending through currency devaluation is predictably causing consumers harmed by the unexpected de facto tax increase to cut back on their spending.
Retail Industry Suffering
The sudden collapse of Bed Bath & Beyond shouldn’t have been a surprise. Its bankruptcy has forced the closure of its 2,800 stores. Other major retail names, such as Walgreens, Family Dollar, Walmart, and TJX are expected to close more than 2,000 of their stores by the end of 2025. According to a report by Business Insider, the total number of retail store closures in the United States could reach a staggering 45,000 over the next five years.
CVS Health, the world’s second-largest healthcare company, isn’t immune from the ravages of the Biden-Harris economy. It announced the layoff of 2,900 employees following a third downgrade of its economic performance. When that third announcement was made on Friday, its stock dropped 19 percent, forcing the departure of its president and CEO Karen Lynch. Rumors permeate Wall Street that CVS is considering a breakup of the company in response to pressures brought on by the Biden-Harris economy.
Last month, national retailer Big Lots filed for bankruptcy and will close its 315 stores. It also blamed the Biden-Harris economy:
Like many other retail companies, the Company has been negatively impacted by recent macroeconomic factors, such as high inflation and interest rates that are beyond its control.
The prevailing economic trends have been particularly challenging for Big Lots, as its core customers have reduced their discretionary spending in the household and seasonal product categories that represent a significant portion of the Company’s revenue.
Global paint manufacturer PPG reported on Thursday that the same economy is forcing it to lay off nearly 2,000 workers, and it is considering selling off one of its major subsidiaries in response.
Construction of new homes dropped in September as building permits, an indicator of future demand, fell by nearly three percent.
Big Tech Pain
The layoffs are impacting the tech industry as well. Following a brutal year of layoffs in 2023, they are continuing this year. Tech titans such as Meta (Facebook), IBM, Google, Microsoft, Tesla, and Nike have all announced job cuts. And a recent survey of leaders in that sector revealed that four out of 10 of them expect layoffs to continue as the Biden-Harris policies of spending money created out of nothing continue to impact the economy and consumers negatively.
Alphabet, the parent company of Google, laid off 12,000 employees last year, and additional job cuts are continuing this year.
All of this shows up in the polling leading up to the elections next month. A recent Gallup poll revealed that the Biden-Harris economy is the only issue that more than half of voters consider “extremely important.”
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