‘Bidenomics’ crushing small businesses with rising costs of gas, food, and lodging.
President Biden’s Economic Claims: A Reality Check
President Joe Biden and the rest of the Biden regime continue to tout the success of ”Bidenomics” in saving the U.S. economy. However, it is painfully obvious that they are out of touch with the reality faced by the American working class. For them, the economy may seem stable, but for the average American, it is teetering on the brink and Bidenomics has been nothing short of a disaster.
At a Labor Day celebration in Philadelphia, the president boldly claimed that Bidenomics “is working” and that it is a “blue-collar blueprint for America… It’s for you.” However, the economic data tells a different story. Just last week, the Consumer Price Index (CPI), which measures inflation for the American consumer, rose more than expected to an annual rate of 3.7%. This rise in inflation was primarily driven by skyrocketing gasoline prices, soaring rent and housing costs, and the increasing prices of basic necessities like food, which hit working-class Americans the hardest. Shockingly, the shelter index alone has been on the rise for 40 consecutive months.
Considering that the CPI in August 2022 was at 8.3%, consumers are now paying a staggering 12% more for goods and services in 2023 compared to 2021. In fact, a study from The Heritage Foundation revealed that Americans have lost around $7,100 in spending power since Biden took office in January 2021. And things have only gotten worse.
Gas prices have also been on the rise, with the national average for a gallon of gas reaching $3.85, a $0.05 increase just last week. This surge in oil costs, despite a drop in domestic demand, has pushed oil prices to hover around $90 per barrel.
At the grocery store, Americans are feeling the pinch as well. The average family of four is now paying $89-132 more per month for the same groceries compared to January 2022, according to the USDA.
The loss of purchasing power has forced many Americans to take on debt just to cover their basic needs. Credit card debt in America has surpassed $1 trillion for the first time, with people using their credit cards not for luxury items, but for essentials like gas, rent, and food. And with a current interest rate of 28.02%, this debt is becoming increasingly burdensome.
Overall household debt levels have reached a staggering $17.6 trillion, driven by credit card debt and auto loan balances. This represents a spike of $2.9 trillion since the end of 2019.
As working Americans struggle to make ends meet, obtaining credit has become more difficult. A survey by the New York Fed revealed that 60% of respondents believe that getting loans, credit cards, and mortgages has become harder compared to a year ago.
Furthermore, the rejection rate for credit applicants, including those applying for car loans and mortgages, has increased to 21.8%, the highest level since 2018.
Foreclosures continue to rise, with foreclosure starts up 15% in the first half of 2023, affecting nearly 186,000 properties.
And if you’ve noticed more tow trucks on the road, it’s not your imagination. Vehicle repossessions have increased by over 20% since February 2023.
Inflation is here to stay, and high interest rates seem to be sticking around as well. As President Biden seeks reelection, he may want to find something else to highlight besides the economy.
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Jim Nelles is a Navy veteran and supply chain consultant based in Chicago. His articles have appeared in the Washington Examiner, Newsweek, Foxnews.com, and the Daily Wire. He has served as a chief procurement officer, chief supply chain officer, and chief operations officer for multiple companies.
The views expressed in this piece are those of the author and do not necessarily represent those of The Daily Wire.
What factors have led to the lowest level of labor force participation rate since the 1970s under the Biden administration?
Rica reached a record high of $1.1 trillion in August 2023, a clear indication that the average American is struggling to make ends meet under the Biden administration’s economic policies.
Another aspect that cannot be ignored is the impact of the labor market. While President Biden boasts about job creation, the reality is that the labor force participation rate is at its lowest level since the 1970s. Many Americans have given up looking for work due to a lack of suitable job opportunities or the inability to find employment that pays enough to support their families. The unemployment rate may seem low, but this is mainly due to discouraged workers dropping out of the labor force altogether.
Furthermore, small businesses, the backbone of the American economy, have been hit hard by Bidenomics. The burdensome regulations and increased taxes have made it nearly impossible for many small businesses to survive. According to the National Federation of Independent Business, small business optimism has plummeted to its lowest level since November 2021, with concerns over government policies and rising costs cited as major factors.
The Biden administration’s push for more government intervention and spending has also contributed to inflation and a growing national debt. The massive stimulus packages and proposed infrastructure plans have put an enormous burden on future generations, who will be left to pay the price for these reckless policies.
In conclusion, President Biden’s economic claims are far from reality. The average American is feeling the effects of rising prices, stagnant wages, and a shrinking job market. While the Biden administration may talk about a “blue-collar blueprint,” the reality is that their economic policies have been a disaster for the working class. It is time for a reality check and a shift towards policies that prioritize the economic well-being of all Americans.
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