Americans lost $4.2 thousand in income under Biden, study says

An analysis by the Heritage Foundation found that the average American has lost $4,200 in annual income since President Biden took office, wiping out any gains made under Trump.

The loss will be Rapid inflation and rising interest ratessaid a conservative think tank expert. in Thursday’s report.

Their analysis found that the average American has lost about $3,000 in annual purchasing power as consumer prices, which have risen 12.7% since January 2021, have risen significantly faster than wages. .

wage Only increased by 8% over the same periodwhich effectively led to wage cuts for Americans struggling to pay for basic necessities such as food, gas and rent.

Rising interest rates and higher borrowing costs have lowered the average individual’s purchasing power by another $1,200, according to the report.

The Heritage Foundation reports that Americans have lost about $4,200 in income so far since Biden entered office.
AP Photo/Evan Vucci

“Simply put, working Americans are $4,200 poorer today than they were when Biden took office,” said EJ Antoni, a regional economics fellow at the Heritage Foundation’s Center for Data Analytics.

“This economic catastrophe for American families is due to the president and congress being obsessed with spending our money and the Federal Reserve complying and printing dollars making this addiction possible. It is a direct result of what we have done.”

Under Trump, Heritage said the average American’s annual income increased by $4,000.

Record-high inflation is causing Americans to spend less at the grocery store.
Record-high inflation is causing Americans to spend less at the grocery store.
Brandon Bell/Getty Images
Former US President Donald Trump
The Heritage Foundation claims that Americans’ income levels increased by $4,000 during the Trump administration.
Reuters/Gallen Morse

Antoni said Americans are stuck in a “vicious circle”, with many taking on additional debt to cope with the rising cost of living.

“Today, the Federal Reserve is finally getting to grips with the fight against inflation that is pushing up interest rates and increasing funding costs,” he said. “Interest rates on consumer debt of all kinds are rising. Mortgage rates have doubled since Biden took office, significantly increasing Americans’ monthly payments.”

Consumer prices rose 8.3% in August compared to the same month a year ago, according to federal data. The figure was higher than economists expected.

A person buys gasoline at a Shell Station in Bensenville, Illinois on Sept. 12, 2022.
Republicans blame President Biden’s energy for driving gasoline prices higher.
Scott Olson/Getty Images

Biden downplayed the worse-than-expected data, suggesting that the improvement in gas prices was a sign that inflation was beginning to ease.

In a statement last week, Biden said: “Today’s data show that global inflation is further declining in the U.S. economy.

“Overall, prices have been basically flat in our country over the past two months. This is welcome news for American families, and there is still much work to be done.”

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