On Monday, Treasury Secretary Janet Yellen championed the success of the Biden administration’s economic strategies, attributing them to an upswing in private-sector investments in the U.S. and significant job creation. Yellen highlighted the Inflation Reduction Act, especially pivotal considering the recent wave of extreme temperatures and climate-induced events, stating it represents the most ambitious climate initiative the country has ever undertaken.
Yellen, while speaking at a union location in Las Vegas following her visit to a clean-energy training center, commented, “This act is fostering an economic revival, particularly in previously neglected areas.”
Her Nevada tour, a potential pivotal state for the 2024 presidential contest, is in line with President Joe Biden’s effort to communicate the positive impact of the IRA, a bipartisan infrastructure initiative, and the CHIPS and Science Act.
Although Nevada’s primarily service-based economy has bounced back post-pandemic, its 5.4% unemployment rate remains the highest nationally, based on June statistics from the National Conference of State Legislators.
While the U.S. economy has eluded recession, securing low unemployment rates, impressive salary hikes, and surpassing GDP growth expectations, a Reuters/Ipsos poll suggests that several 2020 Biden supporters are uncertain about their 2024 vote.
In her speech to the International Brotherhood of Electrical Workers (IBEW) trade union, Yellen cited the decline in both inflation and unemployment rates below 4%, confirming continued U.S. economic growth. She further highlighted that workers’ real hourly earnings have risen, signifying that wage increments are ahead of inflation.
According to Yellen, the American economy is on a steadfast growth trajectory. She emphasized the importance of being attentive to prospective challenges, especially from international quarters. She expressed confidence in curbing inflation while upholding a robust job market, mentioning the soaring consumer confidence level.
Over 13 million jobs have materialized since Biden assumed office, and the active workforce participation of prime-age individuals (those aged 25-54) has hit a two-decade peak. She also noted the record high participation of prime-age female employees and historically low unemployment figures for Black and Latino communities.
During her speech, Yellen elucidated that the IRA aims to rejuvenate areas hit by industrial downturns by providing targeted incentives. Investments in areas such as clean energy and electric vehicles during Biden’s tenure, she said, primarily benefit counties historically behind in income levels, educational attainment, and child poverty rates.
The transition from fossil fuels remains a challenge. The IRA allocates $500 billion for new expenditures and tax reliefs to promote clean energy, slash healthcare expenses, and enhance tax income. Although tax credits won’t be accessible until the upcoming tax season, more than $110 billion in fresh clean-energy investments have been proclaimed post-bill adoption.
Yellen accentuated the persistent strength of the American economy and its rejuvenating manufacturing sector. The significance of constructing a varied clean-energy supply chain was deemed essential to safeguard economic interests, especially considering the potential hazards of over-relying on a few nations for essential resources.
Without specifying nations, she alluded to a recent International Energy Agency report, which highlighted China’s dominant role in manufacturing several crucial technologies, including solar and wind systems.
