Declining household income reveals the impact of ‘Bidenflation’ on Americans’ finances.
The Biden Administration’s Failure to Address the Economic Crisis
The Biden administration seems oblivious to the fact that the American people are not giving them the credit they believe they deserve for the state of the nation’s economy. It’s time for them to wake up and acknowledge that ”Bidenomics” has led to the detrimental phenomenon known as “Bidenflation.”
The Census Bureau recently released its annual reports on income, poverty, and health insurance coverage, revealing the harsh reality of how families have suffered since the Covid pandemic. It’s clear that low unemployment rates and even rising wages will not improve public sentiment about the economy unless inflation is brought under control.
American Households Struggling Financially
The most revealing data can be found in Table A-2 of the income study released by the Census Bureau. One column in that table displays the median income of households for each year. These numbers clearly demonstrate how American families have been losing ground:
- 2019: $78,250
- 2020: $76,660 ($1,590 below 2019)
- 2021: $76,330 ($1,920 below 2019)
2022: $74,580 ($3,670 below 2019)
In other words, the median income of American households last year was $3,670 less than it was before the Covid pandemic.
These median income figures are adjusted for inflation. The significant increase in inflation, as indicated by the consumer price index rising by 7.8 percent in 2022 (the largest increase since 1981, according to the census), explains why median household income dropped by 2.3 percent last year.
Over the past four years, the disparity becomes even more striking. In total, the median family has experienced a loss of $7,180 in real income since 2019. This calculation does not account for any additional real income growth during this period, despite the fact that incomes typically increase under normal economic conditions. (The census report highlights that median incomes in 2019 were the highest recorded since 1967.)
The census data clearly explain why “Bidenomics” remains deeply unpopular. Given the choice, would you prefer a $1,400 stimulus payment or to have the $7,180 lost in income over the past four years back in your wallet? I know which option I would choose, and it certainly isn’t the stimulus.
Incomes have continued to stagnate since last year. Although real earnings saw some growth from March to July, the recent surge in gas prices resulted in a 0.5 percent decline in real hourly earnings in August when adjusted for inflation. From August 2022 to last month, real hourly earnings increased by only 0.5 percent, and real weekly earnings (which reflect changes in hours worked per week) grew by a mere 0.3 percent. These figures are far from sufficient to compensate for the stagnation experienced over the past four years.
The Media’s Misleading Narrative
As usual, the corporate media has missed the true story behind the census numbers, instead choosing to focus on a topic that exacerbates the issue. Take, for example, an article from The Hill with a headline proclaiming, “Poverty Rate Increases for the First Time since 2010.” The article also claims that “the child poverty rate more than doubled, from 5.2 percent in 2021 to 12.4 percent in 2022.”
Only in the penultimate paragraph does the article reveal something closer to the truth:
The Census also found that the official poverty rate, which does not include government programs, was 11.5 percent between 2021 and 2022 and not statistically significant.
In other words, the headline about the poverty rate increasing and the content of all the preceding paragraphs about the child poverty rate more than doubling were at best misleading and at worst completely false. The media and the left (which are often indistinguishable) focused on the unofficial poverty metric because they want to construct a narrative that justifies the restoration of pandemic-era welfare programs to “reduce poverty.” The inconvenient truth that the official poverty rate, which excludes government program payments, remained statistically unchanged was conveniently ignored.
Equally inconvenient, and therefore ignored, is the fact that these pandemic welfare programs have fueled rampant inflation, leaving Americans worse off than they were before Covid. That is the real story behind the Census Bureau reports, and it’s a story that families are grappling with every day.
How has the rising cost of living impacted American households’ ability to make ends meet?
Income actually decreased by 0.9 percent. This stagnant growth in incomes, coupled with the rising cost of living, has put a significant strain on American households.
One of the key drivers of the economic crisis under the Biden administration has been the phenomenon of “Bidenflation.” Inflation has reached its highest level in decades, eroding the purchasing power of American families. The consumer price index rising by 7.8 percent in 2022 is a clear indication of this alarming trend. The rising cost of essential goods and services, from housing to food to gas, has made it increasingly difficult for families to make ends meet.
It is not just the cost of living that has worsened under “Bidenomics”. The impact of the Covid pandemic has resulted in significant job losses and disruptions to businesses. The unemployment rate may have decreased, but this does not tell the whole story. Many Americans have been forced into lower-paying jobs or have given up looking for work altogether. The underemployment rate, which includes those who are working part-time but want full-time employment, remains high.
The Biden administration’s approach to addressing the economic crisis has largely focused on government spending and stimulus packages. While these measures may provide short-term relief, they do not address the root causes of the problem. In fact, they may exacerbate the issue by adding to the national debt and putting further pressure on inflation.
What American households need is a comprehensive and sustainable approach to economic recovery. This should include measures to control inflation, stimulate job growth, and support small businesses. It is crucial for the Biden administration to work with Congress and the private sector to implement policies that will create a favorable environment for businesses to thrive and for workers to secure stable, well-paying jobs.
In addition, the administration should prioritize investments in education and skills training to equip workers with the necessary tools for the jobs of the future. This will not only help individuals improve their earning potential but also contribute to long-term economic growth and competitiveness.
The Biden administration cannot continue to ignore the harsh reality facing American households. ”Bidenomics” has failed to deliver the economic recovery that was promised. Inflation, stagnant incomes, and a lack of meaningful job opportunities have left millions of Americans struggling to make ends meet. It is time for the administration to reassess its approach and implement effective policies that will truly address the economic crisis and provide relief to American families.
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