WSJ Freebie of the Day: 'Yellen: The Biden-Harris Econmic Success'

 The economy has been marked by a combination of developments that few thought possible this year. Inflation is down significantly while the unemployment rate remains near historic lows. Economic growth has been strong, bolstered by robust consumer spending and business investment. Risks remain, but the data suggest that we’re on the path to a soft landing.

While there’s more to do to bring down the cost of living, I believe that Americans can feel optimistic about their economic futures. Because wages have risen faster than prices, the typical American can now afford more goods and services than before the pandemic. Americans earning less have seen the largest wage gains. The black unemployment rate reached a historic low last year. The gap between urban and rural unemployment rates has narrowed.

None of this has happened by chance. When President Biden and Vice President Harris took office, thousands of Americans were dying from Covid-19, and the unemployment rate was 50% higher than it is today. In that first year, our administration provided financial support to households and prevented an eviction crisis. We vaccinated millions to save lives and allow businesses to reopen safely.

We then navigated additional crises, including the energy shock from Russia’s invasion of Ukraine. And we made critical investments in infrastructure and manufacturing—from clean energy to semiconductors—including in training Americans for jobs in these cutting-edge industries. Our actions helped reverse the pandemic’s shock to our ability to produce goods and services and are boosting our economy’s long-run potential output: a strategy I’ve called modern supply-side economics.

Comparisons show that this strategy has been paying off. The U.S. labor market recovered faster from the 2020 recession than from previous recessions. Economic growth surpassed private-sector predictions of a modest recovery. And the U.S. has outperformed many other advanced economies, with greater real gross domestic product growth and a faster decline in inflation while maintaining a strong labor market.

At this moment, our policy choices are crucial. The president, the vice president and I believe we need investments that bring down costs and double down on our strategy for strong and broad-based long-term growth. We know that prices of essentials like energy, housing and healthcare remain too high, so our top economic priority is lowering them. Investing to build more housing, where challenges have been mounting for decades, would make life more affordable for families. Expanding support for child care would bring more Americans into the labor force. And building on the billions of dollars already headed toward infrastructure, clean energy and semiconductors—including in communities that hadn’t historically benefited—would reduce energy costs and increase productivity.

Veering off course could jeopardize our economic trajectory. Permanent tax cuts that are stacked toward the wealthy and are unpaid for would explode the federal deficit. Repealing investments in the industries of the future would stunt growth. And pursuing nontargeted, nonstrategic international economic policies would raise costs for Americans and cause global turmoil.

Our economic strategy has helped America weather hard events, from a global pandemic to the biggest war in Europe since World War II, and build toward the future. Our administration is committed to sustaining and building on our progress.

Janet Yellen is U.S. Treasury secretary.

https://www.wsj.com/opinion/the-biden-harris-economic-success-fd25ab29