The White House brags that Americans are prospering, yet only one in seven Americans report feeling better off.
Biden claims economic success with the 3.3% GDP growth, but the number is inflated by government deficits and debt, caused by Biden’s spending on social programs, including money given to illegal aliens.
Under Joe Biden, the U.S. debt has reached a record level of $34 trillion, which is 124% of GDP. Interest on the national debt is crippling the economy. In 2023, the US government had to pay net interest costs of $659 billion. Moreover, with Biden continuing to run a deficit and give away money, both the debt and interest payments will continue to rise.
As the government prints and borrows money, inflation rises. The White House claims to have reduced inflation because it is now lower than its Biden-peak of 9%. However, inflation hasn’t disappeared.
The White House’s assertions about inflation reduction are generally supported by cherry-picked examples, such as gas prices decreasing to only 50% higher than before Biden took office.
However, general price levels for food and other necessities remain ridiculously high, 18% to 24% higher than they were in 2019. In January, the White House touted the fact that inflation was lower than a year earlier, which was true.
However, it had risen compared to December, suggesting that the inflation issue will not be resolved soon.
Unemployment is rising. The White House claims unemployment is only 3.7%, and that it has created 4.9 million jobs, but that was over a period of more than three years and included letting people go back to work after covid lockdowns.
During that time, the Democrats let in about 7 million illegals, and this year alone, about 4 million U.S. citizens will turn 18, many of whom will start looking for jobs. So, we actually have a jobs deficit, and it is just getting worse.
The official unemployment rate is very misleading. They only count people actively looking for work, not those who have dropped out of the workforce or are living on government handouts.
By giving away more free money, Biden can artificially lower the unemployment rate and claim victory. The labor force participation rate indicates what percentage of the adult population is actively engaged in the workforce, and under Biden, it is 0.7 percentage points lower than under Trump.
According to Dr. Peter St. Ong, a respected economist at the Misses School, when including the 6 million who never returned to work after COVID-19 and the people drugged out of their mind on the streets, the percentage of Americans without jobs is 7%.
Wages are not keeping up with Biden’s inflation crisis. Real wages increased by 1.4% last year, which The White House called a victory for Bidenomics, but they are down over 5 percent since Biden entered the Oval Office.
Because consumer spending is up, the Biden White House can claim that consumers are not only earning good wages but are also optimistic about the future. However, in reality, the spending is not fueled by optimism but rather by personal debt.
Americans are increasingly resorting to debt as their salaries fail to cover their living expenses. According to the Bureau of Labor Statistics, in the fourth quarter of 2023, total household debt increased by $212 billion (1.2%).
Mortgage debt grew by $112 billion in the last quarter, reaching a total of $12.25 trillion by December’s end. Home equity line of credit (HELOC) balances also rose by $11 billion, totaling $360 billion. Credit card debt surged by $50 billion, reaching $1.13 trillion. Auto loan debt increased by $12 billion, reaching $1.61 trillion.
As American debt levels rise, many individuals are failing to meet their payment obligations, leading to defaults. There has been a notable increase in serious credit card delinquencies across various age groups, particularly among younger borrowers, surpassing levels seen before the pandemic.
In the fourth quarter of 2023, aggregate delinquency rates increased, with 3.1% of outstanding debt in some stage of delinquency by December’s end. Transition rates into delinquency increased for all types of debt except for student loans, many of which are being paid for by the Biden government.
Credit card delinquencies rose by 50% last year. On an annualized basis, approximately 8.5% of credit card balances and 7.7% of auto loans transitioned into delinquency.
And when people are in debt and unable to make payments, they also stop saving. U.S. savings rates are trending steadily downward, and about half of Americans have no savings at all.
We all have differing opinions on abortion, immigration, crime, and Israel, but I think we can all agree: Bidenomics is definitely having an effect on the economy.
