While the Biden team touts Bidenomics, the American people suffer. Working one or two or three jobs, enduring runaway inflation, seeing credit card debt pile up, the American people are definitely feeling the effects of Bidenomics, and it’s not good.
Scott McKay and I spoke on The Spectacle about Bidenomics. I encourage you to listen in.
How can the economy be at nearly 100 percent full employment and still feel so bad? Maybe it’s because every extra dime is being spent to survive. Struggling people tend to ignore good economic numbers when filling the gas tank and buying groceries feels painful.
Remember the late ’70s and early ’80s? Remember powdered milk, meatloaf, and canned beans? Remember having steak once a year? Remember the rare outings to fast food restaurants that were “treats”? I remember.
It was a simpler time because it had to be. Money was tight … for everyone. Interest rates climbed north of 15 percent. Gas-guzzling cars lined up at stations for miles. Detroit thought foreign cars were impossible. In the summers of want, teenagers ran and biked around and called on the phone and met in person. There was no internet. There were no cell phones. There was, eventually, MTV.
The stagflation and misery and crime of those years mostly passed unremarkably. People endured. They remembered tougher times. They went to church. They relied on God.
What does a generation of godless heathens — materialistic, entitled, and already suffering persecution complexes — do with economic hardship? How will they cope with the results of Bidenomics?
Student loans start back up Oct. 1, and U.S. consumers are already swimming in debt. Regarding student loans, the Guardian notes:
The impact is broad. About 12% of the US population has student loans, over 43 million Americans hold a collective $1.7tn in debt. The youngest borrowers have just graduated from college and some of the oldest have retired with student loans. Many parents who took out loans to pay for their children’s education are also still burdened by debt.
Essentially, loan borrowers were free from obligations and spent money everywhere else. This created a false economy, artificially inflating the amount of disposable income Americans had. Coupled with COVID funds, Americans have been living in a false reality. As inflation has increased (thank you federal government for devaluing the dollar), Americans can afford less. As consumers turn to credit cards to make ends meet, this spells doom.
Zerohedge predicted last week that we are about to face a major credit card debt crisis:
#2 The average rate of interest on credit card balances has now risen to a new all-time record high of 20.63 percent…
“The dual increase in credit card usage and delinquency rates is particularly concerning because interest rates are astronomically high right now. The average credit card annual percentage rate, or APR, hit a new record of 20.63% last week, according to a Bankrate database that goes back to 1985.”
#3 A whopping 47 percent of all U.S. cardholders are now carrying balances from month to month…
“Many cardholders from all age and income groups are carrying over credit card balances, with 47 percent saying they do so — up from 39 percent in December 2021 — the survey (carried out in July) finds. Agewise, 53 percent of Gen Xers carryover card balances from month to month. Next were Gen Z consumers (52 percent) followed by millennials, (49 percent) and baby boomers (41 percent).”
Those are only two signs out of eight that point to the coming crisis. The whole post is sobering.
Like during the Obama administration, every bad stat is “unexpected” and a “surprise.” For example, the federal deficit is expected to double. Axios shares the bad news:
The federal deficitis expected to nearly double this year, from about $1 trillion last year to $2 trillion for the fiscal year ending Sept. 30
Why it matters: There’s no precedent for deficits this large, as a share of the economy — outside war, deep recession or pandemic.
- The WashPost’s Jeff Stein reported Sunday on the stunning projected figure from the Committee for a Responsible Federal Budget.
Between the lines: Such huge spending imbalances contribute to high interest rates for consumers — including mortgages — in the short run.
- In the long run, it means interest costs will likely squeeze all other federal priorities.
What’s happening: Bigger interest payments + lower tax receipts, despite strong economic growth.
Bidenomics is causing the pain. Spending beyond one’s means and simply printing money makes for bad outcomes, just as is true for individuals.
A vague unease has settled on America. It’s a sense that a dam is about to burst, but just hasn’t yet. Polling is disturbing to Democrats, especially as black and Hispanic voters are moving toward Republicans. Why? Because these folks represent small business owners and working-class demographics, and they’re struggling. At the rate the Democrats are going, their core constituency will be liberal, rich, highly educated coastal elites. That President Joe Biden is fighting so hard for some form of college loan bailouts illustrates this. Gotta keep the rich kids and their rich parents happy — they’re the ones dealing with worthless women’s studies degrees who need help paying back the loans.
The malaise of the ’70s is back and about to get worse. Who will speak to these concerns and what are the solutions? The Biden administration is too busy touting its economic numbers and gaslighting the American public to speak to the real concerns. Sending billions to Ukraine while Americans are languishing isn’t sitting well, either.
There is pain in the future. Thank Joe Biden. If the election inexplicably goes to the Republicans in 2024, it will be because Biden’s stupid economy left Americans hopeless and grasping at, yes, even Republicans, to save them.
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