June 8, 2022 News & Press Releases

How Biden’s Economic Plan is Working for Virginia

by Democratic Party of Virginia

Richmond, VA – Thanks in part to President Biden and Democrats’ economic plan, Virginia unemployment is down, incomes are rising, and our country is in a good position to fight inflation – no thanks to Republicans who voted against the American Rescue Plan and are more focused on helping their ultra-rich friends and trying to grab power than work towards solutions. 

Here are five key points about the current economy and how we got here:

  1. President Biden and Democrats have delivered one of the strongest job markets in Virginia history

When President Biden took office, the unemployment rate was 4.8% in Virginia. Thanks in large part to President Biden and Democrats, the Virginia economy has added 138,100 jobs, the unemployment rate has dropped to 3.0%, and initial claims for unemployment insurance have fallen by 94%.

Many Virginians were relying on unemployment insurance to feed their families and keep a roof over their heads. Today, thanks in large part to Democrats’ American Rescue Plan, the unemployment rate in Virginia is down to 3.0%. After the pandemic put so many out of a job, Virginians are getting back to work thanks to the American Rescue Plan – and no thanks to congressional Republicans who opposed the critical relief package.   

  1. After shrinking in 2020, Virginia’s economy is growing fast

In the fourth quarter of 2021, Virginia’s real GDP grew 6% annually – a stark contrast with 2020 when the state’s GDP actually decreased by 1.4%. In particular, in Virginia’s largest sector, professional and business services, real GDP grew by 8.3% in the fourth quarter of 2021.   

  1. Democrats are helping small business owners get started while Republicans have a plan that could raise their taxes

During President Biden’s first year in office, Virginians applied to start more new small businesses than any other year since 2005. Meanwhile, Republicans have a plan that could raise taxes on 45.8% of all Virginia small business owners, and 80.6% of small businesses owners making less than $50,000 per year. On average, the small businesses owners affected by this plan could see their taxes go up by $1,700.  

  1. Since President Biden and Democrats’ American Rescue Plan, poverty was projected to decrease in Virginia

Thanks in large part to Democrats’ American Rescue Plan – which passed without any support from congressional Republicans – poverty in Virginia was projected to decrease from 14.5% in 2018 to 5.4% in 2021, and for children under 18, from 13.7% in 2018 to 5.6% in 2021. 

  1. Democrats are taking action to address inflation

To help drive down costs, President Biden has authorized unprecedented releases from the U.S. oil reserves and House Democrats have passed legislation that would prevent price gouging on gas – no thanks to the Republicans who all voted against it. Meanwhile, President Biden’s Bipartisan Infrastructure Law and the American Rescue Plan are helping to lower costs on everything from child care to high-speed internet, and helping to bolster supply chains to make it easier for goods to get where they’re going.