During an event at the White House today Joe Biden made the absurd and out-of-touch claim that “Bidenomics is just another way of saying the American dream.”
The rest of us of course know that claim is pure rubbish as most can’t even afford to go to McDonalds thanks to ‘Bidenomics.’
Kamala Harris Gaffe on ‘Bidenomics’ Reveals How It’s Hurting American Families: Here Are The Facts
In the midst of President Biden’s efforts to champion his economic approach, dubbed “Bidenomics”, Vice President Kamala Harris made a huge mistake. Addressing a different topic, Harris mentioned, “[m]ost Americans are a $400 unexpected expense away from bankruptcy.”
While her statement may not be an exact representation of Americans’ financial stability, it highlights a narrative ignored in White House briefings.
A recent Morning Consult survey revealed that only 46% of Americans could handle a sudden $400 expense without delving into debt. This figure doesn’t necessarily translate to being on the brink of bankruptcy, but it raises concerns.
Such findings expose the precarious financial state many Americans find themselves in, especially when unexpected costs arise, such as car repairs or medical bills, and they are faced with high-interest rates.
This statistic prompts a significant question: Is this the benchmark for the Biden administration’s economic vision?
RELATED: That’s Bidenomics: American Auto-Giant Blindsides Over 900 Workers with Sudden Layoffs
Supporting this notion, The Lending Club’s Paycheck-to-Paycheck Report from June indicates that 54% of Americans are living from one salary to the next.
Even among consumers with incomes ranging from $50,000 to $100,000 annually, 53% are barely making ends meet. Clearly, financial strain isn’t limited to those in lower income brackets.
Furthermore, personal savings for many Americans have dwindled. Despite an initial surge in savings. Americans had $2.3 trillion when President Biden was inaugurated, and experienced this number rising to $5.7 trillion after the launch of Biden’s “American Rescue Plan” in March 2021.
The past two years has shown a dramatic drop in the total. Personal savings now stand at a mere $862 billion by June 2023. Bloomberg’s analysis shows that the average middle-class family lost over $33,000 in real wealth within the past year.
Alarmingly, there’s been an increase in Americans tapping into their retirement funds to manage their expenses. Bank of America’s data, which analyzes its clients’ employee benefits programs, shows a 36% uptick in individuals depleting their 401(k) plans in the second quarter of 2023 compared to the previous year.
So, what’s the primary culprit behind these financial challenges? Many point to the rise in the cost of living due to inflation under the Biden administration.
The Bureau of Labor Statistic’s Consumer Price Index (CPI) paints a clear picture: in January 2021, the basket of commonly bought goods and services stood at $261.50. By July 2023, it had surged to $305.70, marking a 16.9% increase within two and a half years – a record unmatched since the 1980s.
Compounding this issue is stagnant wage growth. While inflation has soared nearly 17%, wages have only grown by 13% since Biden’s inauguration. The disparity becomes glaring for those living paycheck to paycheck.
Moreover, Americans are resorting to credit cards at an alarming rate. The Federal Reserve Bank of New York reported that credit card debt reached a record-breaking $1 trillion in the second quarter of 2023.
To make matters worse, 51% of credit card holders unable to pay their full balance monthly and facing interest rates averaging around 15% (and sometimes exceeding 22%), many households are feeling the pinch.
Thus, the rhetoric surrounding “Bidenomics” and its success appears to be at odds with the on-ground reality.
Many Americans are struggling with increased living costs, stagnant wages, and diminished savings. The reliance on credit cards and the erosion of retirement savings paint a challenging picture.
It remains to be seen if this will be the enduring legacy of “Bidenomics” or if a change in direction is on the horizon in 2024.
RELATED: Biden Tries to Explain ‘Bidenomics’ with a Giant Whiteboard, But It Blows Up Immediately