This is Bloomberg Opinion Today, a congressional majority of Bloomberg Opinion’s opinions. Sign up here. Behold Biden, Deficit Destroyer |
In the lead-up to today’s midterm elections in the US, Republicans instrumentalized inflation and especially gasoline prices to portray President Joe Biden as an incompetent manager of the economy. The Democrats did little to counter this view: They were too busy arguing that the vote was about the preservation of democracy itself. But, as Matthew A. Winkler points out, Biden has outperformed the last six of his seven predecessors on more than a dozen measures of relative prosperity. Growth in gross domestic product, jobs created, expanding home equity levels and the strengthening dollar combined to make the Biden economy over his first two years superior to every midterm presidency since Jimmy Carter. And when it comes to reducing the federal budget deficit, Biden’s record puts him head and shoulders above that crowd. The almost-10-percentage-point decline in the deficit as a percentage of GDP — to 5.4% from 15.6% — is unprecedented. Presidents Bill Clinton and Carter reduced the deficit 2.4 percentage points and 1.1 percentage points, respectively, in their first two years, while it expanded 1.1 percentage points under Donald Trump, 1.3 percentage points under George H.W. Bush, 1.7 percentage points under Ronald Reagan, 3.7 percentage points under Barack Obama and 4.5 percentage points under George W. Bush. Further Election Reading: Xi Should Bring Ma in From the Cold |
At this week’s World Internet Conference in Beijing, leaders of China’s tech industry will be on their best behavior, pledging support for President Xi Jinping’s “common prosperity” agenda. They remember what happened to Alibaba founder Jack Ma when he delivered an unscripted speech that offended Xi: The billionaire was consigned to limbo. But the obedience and obeisance of tech moguls can’t conceal the fact that two years of regulatory crackdowns, endless Covid Zero lockdowns and confusing political shibboleths have drained China’s entrepreneurial spirit. Xi claims common prosperity is not egalitarianism, but many entrepreneurs see the slogan as an excuse for Beijing to appropriate their businesses once they become successful. This, argues Shuli Ren, is why Xi should use the conference to show his appreciation for entrepreneurship and signal that successful businessmen won’t be taken for granted and thrown under the bus once they help China reach its strategic goals. The best way to do that: Bring Ma back into the fold. Further China Reading: Even as Beijing talks up the potential of the domestic market, the evidence suggests local consumption has stalled. — David Fickling Strong profits have left Europe’s banks sitting on enormous piles of cash. Some of it will be set aside for provisions for bad loans, and some will go to growing lending and acquisitions. But, as Paul J. Davies points out, there will be billions left over for handouts to investors — if the winter is mild. Democrats shouldn’t be shocked if they perform miserably in the midterms. — Bloomberg’s editorial board Jobs growth suggests the US may be able to avoid a crippling recession after all. — Conor Sen Binance may look a winner in crypto’s game of thrones, but the market is high in distrust and low on transparency. — Lionel Laurent Experts with proper scientific credentials are becoming famous for pseudoscientific ideas. — Faye Flam A new history of businesses sheds light on the dos and don’ts of responsible behavior. — Adrian Wooldridge No one really makes money owning a soccer club; they only profit from selling it. — Alex Webb Adidas’ new CEO has a Kanye-sized hole to fill. — Andrea Felsted The US can’t rely on immigration agreements in which Mexico has to play “the wall.” — Eduardo Porter Twitter and Facebook can’t afford the obsessions of Musk and Zuckerberg in an age of austerity. — Parmy Olson Turnover at Apple is hindering efforts to replace the head of product design. The pace of tech job cuts is reaching early-pandemic levels. Alternative social media platforms are making a pitch for Twitter leavers. Renault-Geely deal makes Li Shufu a key facilitator of Europe’s push for electric vehicles. Former FIFA boss says giving Qatar the World Cup was a bad idea … … and Qatar’s ambassador for the World Cup shows why. Hong Kong’s Big Brother buys a luxe mansion. What would you bid for a T. rex skull? Notes: Please send your reds or blues to Bobby Ghosh at aghosh73@bloomberg.net. Sign up here and follow us on Instagram, TikTok, Twitter and Facebook. | 
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