Stephanie Ruhle discusses bad messaging by Democrats on the economy.

Democrats continuously tell Americans that the economy is firing on all cylinders. While this is the case for many, Stephanie Ruhle states that we must address those left behind.

Stephanie Ruhle discusses bad economic messaging.

Democrats seem to be stuck in a communication bind concerning the American economy. A financial journalist, Stephanie Ruhle, points out that while the Democratic party tends to highlight economic metrics that look promising on paper, they’re missing a huge opportunity to connect with average Americans who are still struggling. Acknowledging this struggle is not just about empathizing with American pain; it’s about reorienting the Democratic Party’s economic message away from supply-side economics towards an economic framework that benefits everyone, particularly the most marginalized.

Covered in the video clip:

• Stephanie Ruhle argues that Democrats need to improve their messaging on the economy by acknowledging the struggles average Americans face due to issues like inflation and rising costs rather than simply saying the economy is doing well.
• Democrats should transition their economic focus from supply-side economics to a system that benefits all Americans. This should involve taxing the wealthy who have disproportionately benefited from tax cuts and acknowledging that they funded their well-being.
• Despite recovery from the pandemic and positive statistics such as wage growth, there is a disconnect between these numbers and how Americans actually feel. People still face higher costs for basic goods, making it imperative for Democrats to address citizens’ pain.
• The conversation emphasizes the need for Democrats to not only celebrate economic gains made by a large percentage of the population but also focus on those suffering and should be part of their voting base.
• Republicans and Neo-Liberal Democrats like Senators Sinema and Manchin are to blame for recent negative changes like the resumption of student loan payments and reduced childcare subsidies. Americans must understand that reality, the source of their economic woes so they can vote appropriately.

First, let’s talk about the impact of supply-side economics, a system that, as Stephanie Ruhle suggests, has largely failed the average American. Born from the Reagan era, supply-side economics argues that reducing taxes on the wealthy and corporations will result in economic benefits that “trickle down” to everyone else. However, decades of data show that this is far from the truth. According to a study by the International Monetary Fund, increasing income for the rich actually leads to a decrease in GDP, while increasing income for the poor and the middle class leads to higher GDP. The Economic Policy Institute similarly shows that wages for the top 1% grew 160% from 1979 to 2019, while wages for the bottom 90% grew just 26% in the same period. The supply-side theory, thus, serves as more of a convenient fiction for the wealthy rather than an effective economic policy for all.

However, Democrats seem to be avoiding a full-fledged attack on this theory. They seem content to let Americans believe that a rising tide lifts all boats, as the saying goes. In doing so, they neglect the drowning people despite the rising tide. I recently spoke to a Houston activist who gave the perfect perspective here. Take inflation and wage growth as examples. While the Democrats trumpet that inflation is around 3% and wage growth is at 4%, what isn’t being said is that these figures are inconsistent. The Bureau of Labor Statistics often reports these numbers as averages, meaning outliers can skew them. The average American is not feeling the benefits of this wage growth when they’re paying more for basic goods and services. As Stephanie Ruhle aptly notes, while your wage might have gone up nominally, your bacon, egg, and cheese sandwich now costs twice as much.

But the Democratic party’s issues with economic messaging are not merely about the figures they cite; it’s also about the figures they ignore. By focusing only on aggregate or average data, Democrats overlook a crucial aspect of the economic picture: inequality. Here, Stephanie Ruhle is spot-on. To win broad-based elections, Democrats need to acknowledge the great things happening to a segment of the population and the ongoing suffering that a significant portion of Americans are experiencing.

Moreover, they have to make clear where this suffering originates. Ruhle highlights how recent setbacks like the resumption of student loan repayments and reductions in child care subsidies are the results of Republican votes, aided and abetted by moderate Democrats like Senators Sinema and Manchin. For the Democrats to reconnect with their base and those who should be their natural allies, they must clearly point out that these hardships are not due to some natural law but are the consequences of specific policy decisions.

In summary, if Democrats are to win elections and the American people’s trust, they need to shift their economic messaging radically. They must transition from focusing on supply-side economics to an economic system prioritizing the many over the few. They must speak to those who are benefiting from current economic policies and those who have been left behind. And most crucially, they must make it clear that the economic challenges many Americans face are not inevitable but the result of deliberate policy choices that can and must be changed.

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