Ahead of Biden's visit, economic data is promising, but the public remains largely skeptical

MILWAUKEE (CBS 58) – When President Joe Biden touts his administration's handling of the economy on Wednesday, he will do so in a state where many voters are skeptical, despite overall data that encourages economists.

White House press releases this week said the president would discuss the impact of “Bidenomics” on the country's recovery from an economic downturn caused by the COVID-19 pandemic.

Rebecca Neumann, an economics professor at UW-Milwaukee, said she would say the economy is doing “pretty well” right now. She pointed to a labor force participation rate that has almost returned to pre-pandemic levels and an unemployment rate that also remains stable at 3.7%, close to the pre-pandemic rate of 3.5%.

“That’s a pretty low unemployment rate,” Neumann said. “And that has decreased significantly since the COVID shock.”

However, polls have shown that Wisconsin voters are not so optimistic. A Marquette Law School poll in November found that 57% of Wisconsin voters disapproved of Biden's performance, compared to 42% who said they approved.

In June, 53% of Wisconsin voters said they disapproved of Biden's performance, while 45% approved of Biden's job.

For Desiree Shaw, who has run a small baking business called Desiree's Sweet Treats in Milwaukee for two years, her pessimistic view of the economy stems from the higher prices she pays for ingredients.

“Eggs, flour and sugar are almost all up,” Shaw said. “Items that I need to bake my items – have increased tremendously.”

Shaw's wares are on display at Sherman Park Grocery, which has been open for just over a year. Co-owner Maurice “Moe” Wince said that in a business where profit margins are already slim, he tries to keep prices comparable to major grocers, knowing shoppers are already frustrated by higher costs across the board .

“These challenges are then passed on to our customers,” Wince said. “That makes it almost difficult, if you will, for our customers to walk through those doors and literally have enough to buy fresh fruits and vegetables and affordable groceries.”

Neumann said inflation is a legitimate concern, particularly for working-class families who see a larger share of their income going to cover the higher costs of essentials like food.

While the current inflation rate of 3.2% is closer to the Fed's 2% target, the lingering effects of the increase that covered much of 2021 and 2022, when the inflation rate peaked at 8.9% that prices are significantly higher than before the pandemic.

She found that overall real wages are rising, but how much a person's income has risen can vary widely.

“The wage increases may be distributed differently among the individual people,” said Neumann.

Both Shaw and Wince said if the federal government wanted to make life easier for small business owners, the best thing it could do would be to provide more funding and simplify the process of applying for that help.

“Being able to navigate the system that’s already in place,” Wince said. “Help us as a minority business or potential minority business and help us navigate the thicket.”