Republicans Are Losing Their Edge on the Economy

Wall Street Journal: “The best characterization of the economy in Trump’s second term, based on the main measures, might be ‘so-so.’ Gross domestic product expanded at a 1.9% annual rate over the six quarters ended in June, which compares with 2.4% during former President Joe Biden’s final year in office. The unemployment rate has barely budged, edging up from 4% in January 2025 to a still-low 4.1% as of July, although job growth has slowed markedly.”

“Inflation is the sorest point: Consumer prices were 3.5% higher in June than a year earlier, according to the Labor Department, versus a January 2025 inflation rate of 3%. That ate away at wage gains—average hourly earnings were up 3.5% on the year in June.”

“Americans’ feelings about the economy are decidedly worse than those numbers suggest. In several surveys, only about one-quarter of respondents rate the economy as excellent or good, while about three-quarters say it is in fair or poor shape.”

“One result of the sour mood: a significant reversal in views of the GOP’s ability to manage the economy. In many polls, more voters see the Democratic Party as a better economic steward than the Republican Party—a rare finding in recent years.”