Introduction

Six in ten Americans disapprove of Biden’s handling of the economy.

When he took office, Biden inherited an economy that was recovering from the pandemic. He promptly poured cold water on that recovery with a $1.9 trillion spending bill. On cue, inflation soared and wage gains evaporated.

Americans are saving half as much as before the pandemic and are now saddled with record credit card debt. Biden has led the country into the worst inflation since the Carter administration.

Middle-Class Now Poor & Poor Now Homeless

When the Federal Reserve pumped trillions of dollars into the financial system during the pandemic, they launched inflation, dramatically increasing the cost of living. In 2022, factoring in inflation, we had the largest median household income decline in over a decade.

Biden has presided over a record surge in the percentage of Americans in poverty. From 2021 to 2022, poverty in America rose by almost 5 percentage points, from 7.8% to 12.4%. 40 million Americans live in poverty.

Inflation-adjusted middle-class incomes have fallen by $2,000 since Biden came into office.

In 2022, consumer prices rose 7.8%, the largest increase in 35 years. Higher prices plunged millions of Americans into poverty as their paychecks could not catch up.

Cost of Living Soars

In July, 61% of Americans said they were living paycheck to paycheck.

Inflation-adjusted median income has dropped for three consecutive years.

Credit card debt is over $1 trillion with average interest rates on credit card debt almost 25%.

Conclusion

At the Berkshire Hathaway annual meeting in May, Warren Buffett said the “incredible period” of growth for the U.S. economy is slowing. Buffett said that most of his company’s would report lower earnings this year.

Low, stable inflation and interest rates have powered the economy for the last three decades. As this scenario unravels, the country is facing its most challenging years since the 1980s.

Photo by Sefi Greiver

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