Accelerating inflation has wiped away 26 million low-income households’ savings, according to a new report, with these Americans losing nearly $16,000 under President Biden. Overall, American workers have received a nearly four percent pay cut under President Biden, which has prompted nearly 70 percent of Americans to report they’re having to dip into savings to cover basic expenses.
While President Biden claims that his stimulus helped families, another report shows his stimulus fueled inflation, raising prices for the typical household by over $7,600, well over the $6,000 in government checks the Administration sent to a family of four.
Bottom Line: Without savings to rely on, low-income Americans are being squeezed the hardest by Biden-Flation when economists warn of a looming recession.
Biden-Flation Hits Low-Income Americans the Hardest.
- According to analysis of data from the Federal Reserve, low-income households’ savings have dropped nearly 26 percent under President Biden.
- As Former Obama-Biden economic adviser Larry Summers warned back in May of 2021, inflation “disproportionately hurt[s] the poor.”
- Analysis from Wells Fargo found that Hispanic and Latino Americans experience the highest inflation rate, with Black Americans not far behind.
- A Penn-Wharton Budget Model analysis estimated that higher prices outpaced an increase in earnings for many households earning less than $60,000.
Main Street Businesses & American Families Are Suffering.
- The typical family now has to spend $450 more per month to buy the same goods and services they did a year ago, prompting more Americans to rely on loans and credit cards to make ends meet, even as the Federal Reserve makes borrowing more expensive.
- Gas prices have more than doubled since President Biden took office, which means the average American family will spend $5,000 on gas, a 78 percent increase from a year ago.
- For six months in a row, Main Street businesses have faced double-digit inflation, causing optimism to plummet to the lowest point in nearly 50 years.
President Biden Doesn’t Have a Plan to Fight Inflation.
- From denying inflation and claiming it was “temporary,” to passing the buck with “Putin’s Price Hike,” the White House and congressional Democrats are out of touch with the challenges Americans face and continue to threaten crippling tax hikes that would cause prices to rise even further.
- Mark Zandi, the White House’s preferred economic forecaster, has warned the Build Back Better plan will worsen inflation.
- Democrats should work with Republicans to get our economy back on track.