Americans are grappling with an unprecedented economic burden, a consequence of what critics label as the failure of “Bidenomics.” The Biden administration, faced with persistent inflation and rising living costs, seems to be in denial about the economic challenges confronting ordinary Americans.
Since Joe Biden assumed office, the cost of living has soared dramatically. Bloomberg’s recent study reveals a stark reality: what $100 bought before the pandemic now requires $119.27. This price surge affects everything from groceries, up by 25%, to auto insurance and rents. A report by the Republican U.S. Senate Joint Economic Committee members paints an even bleaker picture: American families need an additional $11,400 annually to maintain their pre-pandemic lifestyle. This economic pressure is especially severe on middle- and low-income Americans, leaving them precariously on the edge.
President Biden touted the lower annualized inflation rate but blamed the companies themselves for higher prices, rather than government policies.https://t.co/fgu1y1iSQG
— reason (@reason) November 30, 2023
Biden’s response to this crisis is a demand for corporations to roll back prices to pre-office levels, as stated during the launch of a new White House supply chain initiative. This approach reflects a fundamental misunderstanding of economic dynamics. Prices, once increased, rarely revert, especially considering the interconnected nature of our economy. The underlying costs of goods and services have risen, and wages have yet to keep up.
The Biden administration’s attempt to shift the blame onto corporations for “price gouging” seems politically motivated and disconnected from the harsh economic realities.
Day to day the stock market and huge companies dominate the headlines. However over half of American workers are employed by small businesses.
Profits for small businesses are at 20 year lows and the recession is already here. Small business labor and energy costs are going thru… https://t.co/GGyMZv6PoC
— Wall Street Silver (@WallStreetSilv) November 30, 2023
Inflation, although slightly decreased, remains a concern. The Federal Reserve Bank of St. Louis defines the current scenario as disinflation, a decrease in the inflation rate, not deflation. The distinction is crucial: prices are still rising, albeit at a slower rate. The annualized inflation rate stands at over 3%, with core inflation, excluding food and energy, at around 4%. This persistent inflation erodes the purchasing power of Americans, leaving many struggling to afford basic necessities.
The geographical disparities in how inflation affects Americans further complicate the issue. For instance, Colorado residents need an extra $15,000 per year to maintain their standard of living, while those in Arkansas require around $8,500. These differences underscore the uneven impact of inflation across the United States.
The 2024 elections are likely to be a referendum on Bidenomics. Drawing parallels to the 1980 election, when Ronald Reagan challenged Jimmy Carter’s economic record, the GOP nominee could similarly question American voters: Are you better off than you were four years ago?
