Politics
Why Biden is getting little credit for the economy, especially in California
As President Biden struggles to sell Bidenomics to skeptical voters, he’s facing the all-too-real consequences of stubbornly higher inflation, but he’s also battling human psychology.
And both of those factors may be especially strong in California.
Most economists agree that the American economy during Biden’s presidency has made a remarkable recovery from the pandemic. And it continues to outperform expectations, even if California isn’t doing quite as well. But polls have consistently shown that the public by and large holds a negative view of the economy and, by extension, Biden’s handling of it.
While partisan politics, pandemic hangover and other factors have colored people’s attitudes, experts say inflation appears to be the single biggest economic albatross for Biden.
He entered office with an approval rating of 57%, but in Gallup’s latest poll in March that number was 40%, with his handling of the economy perceived as one of his biggest weaknesses.
This even though the rate of inflation has come down significantly from earlier highs and the incomes of Americans, on average, have risen to equal or often exceed the higher costs for most goods and services.
On Wednesday the government reported that inflation, as measured by U.S. consumer prices, edged up in March to 3.5% from a year ago. It was a little higher than expected, driven partly by bigger price increases for transportation, electricity and medical services. Food inflation was subdued, but shelter and energy prices are still running a bit too hot
Although the rate of inflation has declined since hitting a 40-year high of 9.1% in June 2022, it’s still well above the Federal Reserve’s 2% target, which could delay a much hoped-for cut in interest rates.
What’s more, experts say the slowdown in inflation isn’t what most people notice. Nor do they seem as relieved by the seemingly encouraging decline in inflation from 2022 as professional economists are. After all, it’s not that prices have fallen dramatically; they’re just not rising as fast as before.
That’s where basic elements of human nature come in, some economists and other analysts say: Consumers instinctively pay more attention to the dollars they have to shell out than they do to the increases in their paychecks.
That’s especially true when the purchases are for everyday items such as gasoline, for which prices in California are higher than elsewhere in the United States.
Today, U.S. consumers are paying 20% more for milk, about 30% more for bread and more than 50% more for eggs than they were in February 2020, just before the COVID-19 pandemic began, according to the U.S. Bureau of Labor Statistics report Wednesday.
Rents are up more than 20% from pre-pandemic levels and electricity costs about 30% more.
For Californians, even with wage gains matching or exceeding consumer price increases, higher inflation may have an even stronger real and psychological impact because the state is so much more expensive to begin with.
“They worry whether inflation is coming back,” said Mark Baldassare, the statewide survey director at the Public Policy Institute of California. “It creates a new set of circumstances and anxiety in California, where housing and the cost of living is a major concern, especially for lower-income but also middle-income and younger Californians.”
In a statewide survey he conducted last fall, Baldassare found that a growing percentage of Californians were “not too happy” (26% compared with 20% in 2011 and 13% in 1998). And among the groups who are the least happy: 18-to-34-year-olds; renters; and those with household incomes of $40,000 or less.
Nationwide, prices for all goods and services have jumped about 20% over the last four years. And it’s been an especially startling jolt to many consumers because the vast majority of them had never experienced anything like it in their adult lives.
The last time inflation was at or near double-digits was in the early 1980s, and for most of the last 30 years it’s been close to the Federal Reserve’s 2% target.
“Part of the story is not just that we’ve had high inflation, but we’ve had high inflation with a generation that’s ill-equipped to deal with it,” said Justin Wolfers, professor of public policy and economics at the University of Michigan. “Young people today might think prices have risen by 20% and no one’s ever going to make me whole.”
But, in fact, Wolfers noted, gains in wages and salaries, on average, have actually outpaced inflation since the pandemic, with lower-income workers seeing the highest percentage gains.
Older people who went through substantial inflation before may have learned that it usually turns out to be a temporary problem: For at least the last half-century, when the cost of living has risen sharply, so have workers’ incomes, though not immediately.
Older generations understand the dynamic: “Inflation takes away with higher prices and then it gives back with higher wages,” Wolfers said.
In California, workers on average earned $1,595 a week in the third quarter of 2023, the latest available data from BLS. That’s 23% higher than the same quarter in 2019.
And it’s about five percentage points higher than the increase in prices over a similar period in California, based on data from the state’s Department of Finance.
But even though average paychecks have now matched or exceeded price increases — meaning most consumers’ purchasing power has not been eroded, Wolfers and other economists say — that’s not the way people process things.
When prices go up sharply, people get upset, thinking it unfair and unjust, and looking at the government or someone else to blame. But if their wages go up by just as much, people tend to “externalize” the increase, feeling they earned it, although in reality the bigger paycheck is largely the result of higher prices — and the resulting ability of employers to pay their employees more.
That psychology presents a big challenge for Biden, since it takes time for consumers to get over what they’ve internalized about high inflation. And although California will probably not be in play in November’s presidential balloting, the downcast mood of many residents due to inflation may only be magnified because the state’s economy has been lagging behind the nation.
Between February 2020 and February 2024, California’s payroll jobs have increased by 1.7%, half of the national job growth rate. The unemployment rate in California in February was 5.3%, compared with 3.9% for the U.S as a whole, although the state Finance Department’s chief economist, Somjita Mitra, said California’s share of long-term unemployed is comparatively much smaller.
The latest survey of consumer confidence by the Conference Board shows California significantly trailing other big states such as Florida, Texas, and New York.
And there are fresh signs that more California consumers are struggling financially. The share of credit card delinquencies, for example, rose in December to the highest level since late 2009 around the time of the Great Recession, according to the California Policy Lab at UC Berkeley.
“In California, the credit trends are deteriorating; they’re not headed in a good direction,” said its executive director, Evan White.
Household surveys by the Census Bureau, most recently in February and March, found that Californians are struggling more with housing finances and paying for usual living expenses than the national average. And a significantly larger share of Californians than most other states reported to the census that they had changed their driving behavior due to the cost of gas.
Gasoline prices in both the U.S. and California are up about 29% from February 2020, according to the U.S. Energy Information Administration. But the average price for a gallon of gas in California was $4.83 last month, compared with the national average of $3.45.
Gas prices have been rising again in recent weeks, and if that continues it could be another big impediment for Biden, said Mark Zandi, chief economist at Moody’s Analytics.
The other key economic factor that Zandi thinks could sway some voters is whether interest rates come down.
For homeowners, higher inflation has meant higher home prices too. But renters, particularly those in their prime home-buying years, in their 30s and 40s, have felt locked out of the market due to high inflation and mortgage rates — particularly in pricey California.
“That really undermines their thinking about the economy and their own financial health,” Zandi said.
Politics
EXCLUSIVE: FBI adds alleged COVID fraudster accused of taking $5M from kids’ meal program to Most Wanted list
FBI makes first arrest from its ‘most wanted fraudsters’ list
FBI Director Kash Patel announces the first arrest on the “Most Wanted Fraudsters” list. Said Ereg, a Minneapolis man, is accused of stealing over $4.2 million from a federal child nutrition program during the COVID-19 pandemic. Minnesota Senate candidate Michele Tafoya emphasizes the need for accountability for fraudulent activities.
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EXCLUSIVE: The FBI is adding Fahad Mohamed Nur to its Most Wanted Fraudsters List, accusing the Minnesota businessman of allegedly stealing more than $5 million that was intended to feed children during the COVID-19 pandemic.
Nur has been on the run since 2022 and is wanted for his alleged role in a fraud scheme that exploited Minnesota’s Federal Child Nutrition Program during the COVID-19 pandemic, according to the FBI. The bureau alleges he owned a vendor and purported food supplier that received more than $5 million in fraudulent program funds by submitting fake invoices before laundering the proceeds.
The Bureau believes Nur has ties to Somalia and may currently be living there.
The FBI is offering a reward of up to $150,000 for information leading to Nur’s arrest and conviction.
OWNER OF DAYCARE IN VIRAL NICK SHIRLEY VIDEO CHARGED IN $4.6M DAYCARE FRAUD SCHEME, PROSECUTORS SAY
Fahad Mohamed Nur has been on the run since 2022 and may be in Somalia, according to the FBI. (Federal Bureau of Investigation)
Nur is the latest addition to the FBI’s Most Wanted Fraudsters List, which officials say has already resulted in the arrests of two fugitives within weeks of its launch.
“Under President Trump’s and Vice President Vance’s leadership with the White House Task Force to Eliminate Fraud, the FBI’s historic ‘Most Wanted Fraudsters list’ has already seen tremendous success – with two subjects brought to justice in a matter of weeks, apprehended out of Somalia and the Philippines,” FBI Director Kash Patel said in a statement to Fox News Digital.
Patel said the early arrests demonstrate that the FBI is aggressively pursuing fugitives accused of stealing from American taxpayers.
FBI ADDS 2 FUGITIVES TO ‘MOST WANTED FRAUDSTERS’ LIST AMID HISTORIC $6.5B HEALTHCARE TAKEDOWN: PATEL
FBI Director Kash Patel conducts a news conference at the Department of Justice on Thursday, December 4, 2025. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
“Our newest subject – Fahad Mohamed Nur – has been on the run since 2022 for allegedly stealing over $5 million from a child nutrition program in Minnesota.”
Patel added: “Collectively, the Task Force has already uncovered more than $13 billion in fraud, and the rapid success of the Most Wanted Fraudsters List should show all Americans that this FBI will [be] at the forefront pursuing the worst of the worst who stole from hardworking American taxpayers.”
DR OZ WARNS MEDICARE SCAMMERS ARE STEALING BILLIONS — AND YOUR PERSONAL INFORMATION COULD BE NEXT
Federal agents enter an office building as a search warrant is executed at Ultimate Home Health Services over potential Medicaid fraud, on December 18, 2025 in Bloomington, Minnesota, United States. (Christopher Juhn/Anadolu via Getty Images)
Federal officials say the investigation is part of a broader government effort targeting pandemic-era fraud.
“The Department’s robust partnership with the FBI and the White House Task Force to Eliminate Fraud has already delivered historic results. That partnership grows even stronger today with the addition of this latest subject to the Most Wanted Fraudsters list,” said Acting Attorney General Todd Blanche. “President Trump has made it clear: Fraudsters no longer have a safe haven in America. Law enforcement will continue to use every tool at its disposal to bring those who steal from American taxpayers to justice.”
The White House Task Force to Eliminate Fraud, led by Vice President JD Vance, has already uncovered more than $13 billion in fraud, according to the FBI.
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Anyone with information about Nur’s whereabouts is urged to contact the FBI at 1-800-CALL-FBI, their local FBI office, the nearest U.S. Embassy or Consulate, or submit a tip online at tips.fbi.gov.
With the 2026-27 season premiere of “60 Minutes” just two months away, CBS News leadership is getting closer to deciding who will fill the recent departures of longtime correspondents Scott Pelley, Sharon Alfonsi, Cecilia Vega and Anderson Cooper.
Seth Doane, a longtime correspondent based in Italy who is often seen on “CBS Sunday Morning,” is under consideration, along with chief investigative correspondent Jim Axelrod, who currently has a lead role in the “Eye On America” series featured on the “CBS Evening News with Tony Dokoupil.”
Sir Trevor Phillips, a British journalist and former politician who recently joined CBS News as senior global affairs correspondent, is expected to have a role on the program, according to people briefed on the plan. Phillips had a long career in the U.K., producing and writing documentaries and most recently hosted the Sky News program “Sunday Morning with Trevor Phillips.”
Phillips received a knighthood in 2022 for his service to equality and human rights for the U.K. But he also generated controversy over his career for comments about the British Muslim community, which led to a yearlong suspension from the Labour Party in 2020.
A CBS News representative declined comment beyond saying the division is looking at a number of internal and external candidates.
Dokoupil is expected to deliver four “60 Minutes” pieces a season. Major Garrett, the network’s chief Washington correspondent, will also have a contributor role.
Matt Gutman, hired from ABC News last year as national correspondent, is under strong consideration. He is being put in front of test audiences, according to several people at the network.
Holly Williams, a foreign correspondent working out of Istanbul for CBS News since 2012, and Mariana van Zeller, a journalist for National Geographic Channel, are both said to remain in contention.
The newcomers will join Bill Whitaker, Leslie Stahl, Jon Wertheim and Norah O’Donnell, who are all returning as correspondents. O’Donnell will also continue in her role as senior correspondent for the network, occasionally anchoring specials.
The rebuild of the talent line-up comes after the upheaval at the program that has occurred since Bari Weiss joined CBS News as edtior in chief in October.
Longtime correspondent Scott Pelley was fired last month after confronting management about the May 28 dismissal of his colleagues Alfonsi and Vega along with the program’s executive producer Tanya Simon and her second-in-command Draggan Mihailovich.
In February, Cooper decided not to sign a new deal as a “60 Minutes” contributor, as the CNN anchor cited a desire to spend more time with his family. But Cooper has reportedly told colleagues that he does not want to work for Weiss.
The internal disruption at “60 Minutes” followed a highly successful season. In its 57th season, “60 Minutes” was the most watched news program on television with an average of 9.1 million viewers a week according to Nielsen data. The program bucked the overall decline in traditional TV viewing by growing 9 percent over the previous season.
After the dismissal of his “60 Minutes” colleagues, Pelley accused Weiss of trying to “murder” the program and claimed she was putting “her thumb on the scale” for more favorable coverage of the Trump administration. He was fired with cause after confronting management at a June 1 meeting.
Weiss came to CBS when parent company Paramount acquired her digital web site The Free Press, known for its criticism of progressive policies and its strong support of Israel.
Weiss was hired by Paramount Chief Executive David Ellison with a mandate to move the news division to the political center. The pronouncement has created the perception that CBS News is looking to placate the Trump administration as Paramount sought regulatory approval for its $111 billion acquisition of Warner Bros. Discovery, which will also give the company ownership of CNN.
The noise surrounding Weiss has hurt CBS News despite strong reporting that is often far from being pro-MAGA. This past weekend’s “CBS Sunday Morning” featured a segment from national security correspondent David Martin about the Department of Defense interfering with the editorial independence of Stars & Stripes, the military newspaper.
Trump complained vehemently about his last interview with O’Donnell on “60 Minutes,” — conducted the day after a gunman tried to enter the White House Correspondents Assn. dinner in Washington on April 25.
Politics
Abbott orders probe after Texas hospital advertises ‘birth packages’ in Mexico: ‘Citizenship is not for sale’
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Texas Gov. Greg Abbott ordered an investigation into a Texas hospital Tuesday after it confirmed to Fox News that it advertised Spanish-language “Birth Packages in South Texas” on billboards in Mexico promoting childbirth services to pregnant foreign nationals near the U.S.-Mexico border.
Mission Regional Medical Center confirmed to Fox News that it was responsible for the advertising campaign, which promoted deliveries starting at $3,950 for a natural birth and $5,525 for a C-section and directed viewers to a website, havemybabyinTEXAS.com, that has since been taken offline.
The billboards also displayed a telephone number beginning with “001,” the country code used to place calls to the United States from Mexico.
‘WEAPONS OF MASS REPRODUCTION’: WATCHDOG UNVEILS ACTION PLAN TO CURB BIRTH TOURISM AFTER SUPREME COURT RULING
Gov. Greg Abbott speaks during a bill signing in the State Capitol on April 23, 2025, in Austin, Texas. (Brandon Bell/Getty Images)
“The marketing materials regarding maternity services are no longer in use due to any unintended misunderstanding,” a hospital spokesperson said in a statement to Fox News. “We do not support or facilitate any unlawful activity and work to comply with all applicable federal and state laws and regulations.”
The spokesperson said the campaign included two billboards located within approximately five miles of the hospital near a U.S.-Mexico border crossing. The hospital said both billboards and the website were removed Monday after images began circulating on social media. The spokesperson also said the campaign began in 2021 but did not specify when the billboards were installed.
Abbott on Tuesday directed Texas Health and Human Services Commission Executive Commissioner Stephanie Muth to investigate Mission Regional Medical Center for potential violations of state law and contractual obligations.
REPUBLICAN ACCUSES SCOTUS OF BETRAYING US, PUSHES BILL RESTRICTING BIRTHRIGHT CITIZENSHIP, PREGNANT VISITORS
A Spanish-language billboard promotes birth packages at Mission Regional Medical Center, advertising pricing for natural deliveries and C-sections in South Texas. (Right Angle News)
Images of the billboard circulated on social media before the hospital said it removed the advertisements Monday.
“Birth tourism’ is an illegal practice that exploits the extraordinary hospitality that the United States and Texas offer to millions of foreign travelers each year,” Abbott wrote in a July 7 letter obtained by Fox News. “Unfortunately, thousands of foreign travelers come to the United States under false pretenses to give birth and secure citizenship for their children.”
TRUMP SUFFERS MAJOR SUPREME COURT DEFEAT AS JUSTICES UPHOLD BIRTHRIGHT CITIZENSHIP
An English-language billboard promotes birth packages at Mission Regional Medical Center, advertising pricing for natural deliveries and C-sections in South Texas. (Right Angle News)
Abbott directed HHSC to “immediately and thoroughly investigate” the hospital and said any violations should be referred to the Texas Attorney General for civil enforcement and to the appropriate district or county attorney for potential criminal prosecution.
“American citizenship is not for sale and Texas will not permit our healthcare system to be used as a magnet for birth tourism,” Abbott wrote.
The governor also said he plans to work with the Texas Legislature during its next session “to strengthen state law and eliminate birth tourism in Texas.”
“Unfortunately, birth tourism operations are not a new phenomenon,” General Counsel of the Oversight Project Kyle Brosnan said to Fox News Digital in a statement. “The Supreme Court’s egregiously wrong decision in the birthright citizenship case is going to open the floodgates to the birth tourism industry. Our country is much more than a pile of magic dirt. The only answer to these type of practices are criminal investigations and the mass deportation of illegal aliens.”
Mission Regional Medical Center also said it intends to cooperate with state officials.
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“We intend to work cooperatively and transparently with local and state officials,” the hospital said in a statement obtained by Fox News. “Our focus remains on delivering safe, high-quality care to every patient who seeks our services.”
The investigation comes as President Donald Trump’s executive order seeking to limit automatic birthright citizenship for some children born in the United States remains the subject of ongoing legal challenges.
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