‘Bidenomics’ is the death blow to the American dream
The fact that the media, the White House, and the rest of the Democrat establishment continue to parrot the “Bidenomics is working” talking point is one of the many reasons why they’re not trusted. The public is continually told that the economy is strong because consumers are in good shape; see this summertime message from the White House:
President Biden and Vice President Harris came into office determined to rebuild our economy from the middle out and the bottom up, not the top down—and that strategy is working.
On CNBC yesterday, a Biden economic advisor said the economy is “exceptionally” good—I wonder what she has been smoking.
In September, Business Insider reported that “Biden’s economic policies have quietly made peoples’ lives better” but the problem seems to be that the public just isn’t smart enough to realize it.
And from the Hewlett Foundation:
Over the past two years, we have not been watching the economy slowly deteriorate as a consequence of the federal government’s reckless overspending. We have instead been witness to a remarkably swift recovery from the worst economic crisis in 90 years, amid a profound turnover in the global economic order.
Somehow, they “can’t recall” that the economy and jobs were growing rapidly during the last six months of 2020, and inflation was low. Instead of stating facts, they repeat Democrat talking points. I would challenge anyone to look at the following facts about the economy and brag about what great shape the economy is in:
Home affordability is at a record low:
Home prices finished the summer at another record high as home affordability tanks to a historical low.
Over 50% of Americans live paycheck-to-paycheck, especially those making less than $100,000:
Statistics vary, but between 55 percent to 63 percent of Americans are likely living paycheck to paycheck. Three in four Americans who earn less than $50,000 are living paycheck to paycheck compared to roughly two in three of those making $50,000 to $100,000.
Where is the evidence that Biden is building the economy from the bottom up and middle out?
How can anyone claim, with a straight face, that consumers are in a strong position when over 60% of the workforce can’t come up with $500 for an emergency?
People can’t afford to pay their bills, so they are running up credit card debt, which comes with consistently rising interest rates:
U.S. credit card debt increased by $45 billion from Q1 2023 to Q2 2023 leading to a new all-time high. Nearly 50% of cardholders carry debt from month to month, up from 39% in 2021.
Autos cost more than ever, significantly due to government mandates and regulations forcing the industry to focus on electric cars, and as a result payments are skyrocketing:
The rising interest rates in the U.S. have led to record-high loan payments for consumers who borrowed money to buy new cars, per the report. The average monthly payment of $736 is the highest on record, with nearly 18% of car buyers paying at least $1,000 per month.
This obviously hurts the poor and middle class more than the rich. How is that building the economy from the bottom up?
As people run up debt, they can’t keep up with their payments:
Credit card and car loan delinquencies pass pre-Covid levels as consumers get squeezed
More Americans are failing to make payments on their credit cards and auto loans, another sign of rising financial pressure on consumers.
New credit card and auto loan delinquencies have now surpassed pre-Covid levels, according to a Wednesday report issued by Moody’s Investors Service.
Poverty levels hit all time record lows in 2019 after three years of Trump’s lower taxes, fewer regulations, and energy independence policies. Now, poverty rates are rising. Does that indicate that the economy is growing from the bottom up? From Brookings a few weeks ago:
According to the latest ACS data, nearly 41 million people in the United States lived below the poverty line in 2022. That is nearly 1.5 million more people than in 2019, before the pandemic struck.
The percentage of Americans claiming “hardship” to raid their retirement funds has more than tripled since 2019:
More Americans are raiding retirement funds for emergencies
More people are making hardship withdrawals from their 401(k) accounts, raiding retirement funds to cover emergency medical expenses or to avoid losing a home.
Hardship withdrawals from Fidelity Investments 401(k) accounts have tripled in five years, according to a report from the investment firm. The share of plan participants withdrawing money rose from 2.1% in 2018 to 6.9% in 2023.
Real wages rose rapidly during Trump’s years and have fallen most of Biden’s three years. That certainly does not help those at the bottom, no matter how often he repeats it. From CNN via Yahoo News:
American inequality is rising despite higher wages
Which of the above economic facts provides a reason for the media, Biden, and other Democrats to be proud?
Anyone who looks at the above results after three years of Bidenomics and decides they want five more years of this compounding disaster should have their heads examined.
Image: Free image, Pixabay license, no attribution required.