Bidenflation Soars To 19.2%, Eroding Americans’ Purchasing Power There’s no end in sight.
https://tippinsights.com/bidenflation-soars-to-19-2-eroding-americans-purchasing-power/
President Biden, a seasoned politician, has failed miserably in tackling inflation, and it is nearly certain that he can’t wave a magic wand and tame the beast before November. So, he has embarked on an alternate strategy to pin it on Trump. The President, famous for his tales about the “bad dude” Corn Pop, calling a voter at a campaign stop a “lying dog-faced pony soldier,” the death of his uncle Finnegan due to ‘cannibalism’ in Papua New Guinea, and how the xenophobia of Indians and Japanese impede progress, keeps claiming that inflation was nine percent when he took office, even though it was 1.4%.
When President Biden first made the claim, we dismissed it like Special Counsel Robert Hur as coming from a “sympathetic, well-meaning, elderly man with a poor memory.” He has now repeated the claim several times, and we wonder why none of his economic advisors or Nobel Laureate economist friends have corrected him.
Americans know the truth, and the claim comes across as malarkey in plain Biden speak.
The dark reality of Bidenomics is 19.2% inflation under the President’s watch, which is 5.9% annually. When he took office, inflation was at just 1.4%. Since March 2021, it has stayed above the Federal Reserve’s 2% target (38 consecutive months.).
Under Biden, the federal debt has increased by $6.9 trillion. The Federal Reserve printed money out of nothing to finance his spending spree. The increased money supply without a corresponding increase in goods and services reduced the value of each dollar, causing prices to rise quickly and leading to high inflation, effectively acting as a hidden tax on everyone.
Prices have increased by 19.2%, while real wages have declined by 2.6%. Average hourly earnings for all employees dropped 2.6% to $11.09 in April 2024 from $11.39 in January 2021 when Biden took office.
According to Mark Zandi, the chief economist at Moody’s Analytics, the typical U.S. household now requires $1,069 more each month (equivalent to $12,828 annually) compared to three years ago, $784 more per month compared to two years ago, and an additional $227 per month compared to last year.
As a result, credit card debt and delinquencies are surging amid high interest rates. According to TransUnion data published on Thursday, the average credit card debt of an American borrower ballooned to $6,218 in Q1 2024, an 8.5% rise from the previous year. This collectively increased total debt to $1.02 trillion as the credit card delinquency rate, defined as 90 or more days late, climbed to 8.9%, the highest since 2012. The average credit card APR hit a record 20.72%.
Housing affordability has also collapsed under the weight of Bidenomics. During Biden’s tenure, the monthly mortgage payment on a median-price home has increased 115%. According to a recent analysis by real estate site Redfin, prospective homebuyers need an annual income of $113,520 to afford a typical house in the U.S., which is 35% higher than the average household income of $84,072. The last time the typical household income exceeded the amount needed to afford the median home was in February 2021, ironically the month after Biden took office.
Therefore, it is unsurprising that inflation and food prices emerged as top economic issues among Americans in a recent nationwide TIPP Poll.
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