Bidenomics isn’t resonating with voters

President Joe Biden has centered his election campaign on his flagship industrial policy but it has largely failed to resonate with voters [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. Bethlehem is synonymous with one thing in the state of Pennsylvania, and that’s steel. The US company of the same name once employed thousands from its base in Northampton County, forging the battleships, bridges and buildings that made America the world’s greatest industrial power of the 20th century. Now Northampton is a bellwether county in a swing state going into a presidential election that is focused on bringing manufacturing jobs back to America. President Joe Biden has centered his campaign on his flagship industrial policy, dubbed Bidenomics, which involves pumping billions of dollars into creating US manufacturing jobs in industries of the future like chipmaking and clean technology. But, as Akayla Gardner reports, it’s a theme that has largely failed to resonate with voters so far — even in places like Bethlehem whose geographical and political landscape has been shaped by heavy industry. It’s not simply that Donald Trump is also focusing his pitch for a return to the presidency on a similar theme of bringing back jobs lost to Asia. The uncomfortable truth for Biden is that many voters are preoccupied with the rising cost of living and have yet to feel the upswing from his policies. Even where they do, they don’t necessarily credit the president for the jobs that are on offer. With the US economy booming, there may yet be time for Bidenomics to cut through. But for now, the rub is one that governments the world over must be alert to in an age of social media hype and disinformation: Voters may never have had it so good, as British Prime Minister Harold Macmillan famously said, but how do you convince them if they don’t feel it? Put another way, policy making is for wonks and backroom officials. The real art of politics in the 21st century lies in celebrity. And that’s something at which Trump excels. — [Alan Crawford]( A pedestrian bridge allows visitors to view the Bethlehem steel stacks. Photographer: Rachel Wisniewski/Bloomberg Global Must Reads Ukraine’s fight against Russia’s invasion has entered a new phase, pitting homegrown [drone technology]( against a 2,000 kilometer (1,200 mile) swathe of largely Soviet-era oil facilities. At least nine major Russian refineries have been successfully attacked this year. “Russia is a gas station with an army, and we intend on destroying that gas station,” according to Francisco Serra-Martins, head of drone manufacturer Terminal Autonomy. The US is considering escalating its campaign to curtail Beijing’s AI and semiconductor ambitions by [blacklisting a number of Chinese semiconductor firms]( linked to Huawei Technologies, sources say. It follows the telecom giant’s breakthrough last year when it released a smartphone processor that many in Washington thought beyond its capabilities. Philippines President Ferdinand Marcos Jr. said the threat to his nation from China’s claims in the South China Sea is growing but argued that his government’s efforts to assert sovereignty over disputed areas aren’t meant to start a conflict by “[poking the bear](.” “We are trying to keep things on an even keel,” Marcos told Bloomberg TV yesterday. WATCH: Marcos says he just wants peace with China and in the region. Source: Bloomberg The opposition Labour Party’s chancellor-in-waiting pledged a fundamental “[course correction](” for the UK economy, saying the country must invest in growth and solve underlying structural problems to break the grip of stagnation. Rachel Reeves also warned that the nation is “stumbling blindfolded” into an era of bigger state spending by responding to events rather than shaping them. Senegalese President Macky Sall defended his decision to delay elections that plunged the West African nation into turmoil, and insisted its democracy and institutions remain intact. The outgoing leader told Katarina Hoije the move and a subsequent agreement to grant amnesty to opposition leaders and others implicated in political violence were necessary to [reconcile a divided country](, and normality would return after the March 24 vote. Hong Kong now has the task of bolstering its position as an international finance center [after passing a local security law]( at record speed, placating Beijing and antagonizing Western governments. The European Union’s top diplomat presented a plan to use proceeds from sanctioned Russian central bank assets [to help fund]( Ukraine’s military needs. Norway unveiled plans to remove a loophole used by the Nordic nation’s richest people leaving the country, as the government attempts to [drag more tax revenue]( out of the fleeing billionaires. Washington Dispatch While the US political class typically has a keen interest in the monthly press conference by the Federal Reserve chair, today's appearance will be especially scrutinized for how the central bank’s decisions might affect the November elections. Fed Chair Jerome Powell and his colleagues will update their economic and rate projections for the first time since December. With the costs of mortgage and credit-card payments alarming voters, many Democrats have been clamoring for the Fed to lower interest rates. Just this week, Senators Elizabeth Warren and Sheldon Whitehouse warned in [a letter]( to Powell that rate increases have hindered renewable energy projects. Even as demand for clean solar and wind power grows, “the Fed’s interest rates have stalled progress and hampered the country’s ability to combat the climate crisis,” the senators wrote. Yet Fed officials are reluctant to lower borrowing costs until they’re certain inflation is closing in on 2%, the rate they see as appropriate for a healthy economy. A recent rise in the unemployment rate to a two-year high means they’ll need to balance their attention on both prices and the labor market. In congressional testimony earlier this month, Powell emphasized that the central bank had made good progress, “just a bit more evidence” was needed before making an initial rate cut. That evidence cannot come soon enough for Democrats. One person to watch today: Benjamin Netanyahu is [due to speak with]( Senate Republicans by video link today, less than a week after the chamber’s top Democrat, Chuck Schumer, called for elections to replace the Israeli prime minister. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 1 and 5 p.m. ET weekdays on Bloomberg Television. Chart of the Day As the world’s biggest chocolate consuming region, Europe is [feeling the pinch]( from surging cocoa prices the most. Poor harvests in West Africa have sent global futures soaring. And fears are also mounting that new EU sustainability rules — aimed at stopping products that destroy forests from being sold — will make it even harder for the bloc’s top chocolate makers to secure supplies. And Finally Leonardo DiCaprio paid a secret visit to Dubai in 2017 to check out a[housing development]( known as Sustainable City that boasted 600 homes, 11 bio-domes and an urban farm running through its center, and wracked up 1.3 billion dirhams ($354 million) in construction costs. It claimed to be the Gulf’s most environmentally sustainable community — and a potential model for a greener future. But as Zainab Fattah explains, only some parts of that claim have been realized. Sustainable City. Photographer: D. Neeley/Courtesy of SEE Holdings More from Bloomberg - Check out our [Bloomberg Investigates]( film series about untold stories and unraveled mysteries - [Bloomberg Opinion]( for a roundup of our most vital opinions on business, politics, economics, tech and more - [Next Africa](, a twice-weekly newsletter on where the continent stands now — and where it’s headed - [Economics Daily]( for what the changing landscape means for policy makers, investors and you - [Green Daily]( for the latest in climate news, zero-emission tech and green finance - Explore more newsletters at [Bloomberg.com](. Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](