You are poorer today than 12 months ago.
In the last year, families have lost roughly $8,000 in annual wages due to inflation—That’s about a month’s salary in annual income since President Biden took office.
How can this be?
Because you are losing purchasing power due to high inflation caused by out-of-control government policies driven by ideology, not economic reality.
Declining real wages mean the average family lost more than a month’s salary… the equivalent of a 10% pay cut for the median household income.
And these fantasy economic policies have crushed those on retirement even more.
Here are 4 disturbing economic policies making you poorer…
Cause #1—The Massive and Historic Federal Government Overspending Is Producing Historic Debt
Since Biden took office, federal spending has skyrocketed.
The Congressional Budget Office (CBO) reports that since President Biden took office, he okayed a record $3.37 trillion (not billion) in new spending. Biden has enacted policies through legislation and executive orders to add more than $4.8 trillion to the deficit in the next few years.
This has caused the budget to skyrocket to over $6 trillion. Our national debt has grown to a historic and unsustainable $31 Trillion.
This has lowered your standard of living as it has caused inflation and lowering the value of the dollar.
Cause #2—Under-the-Radar Regulations, Executive Orders and Bureaucrats Are Killing Jobs and Increasing Prices
In one of my national TV interviews, Neil Cavuto asked me, “What are the number one cause of rising prices and economic problems: taxes or regulations?”
My answer shocked him. I said, “Regulations. As a business owner and entrepreneur, I know.”
Before Biden took office, the economy was growing by $1.5 trillion. Trump added an average of 1.4 million jobs monthly—even with a COVID-19 epidemic, the inflation rate under Trump was at just 1.23% vs. over 9%. And wages rose under Trump, increasing the standard of living of lower, middle and upper income.
Then Biden took office, and in two years, his pro-socialist policies imposing job-killing regulations are devastating businesses, the economy, and your life. For example:
- Disposable incomes have fallen 11.7%
- Homeownership is down 32%
- Monthly savings have fallen by 83.1%
- Credit card debt is up by 22.7%
- 401(K)s for the average worker has lost over $34,000 or over 20%, crushing retirement dreams.
The stock market has been struggling as well.
The Nasdaq lost 33.1% and the Dow Jones Industrial Average lost 8.8%, and the S&P 500 growth index (. IGX), went down between 28% and 66% in 2022. The S&P 500 growth index (.IGX) fell 30.1% in 2022, while the value index (.IVX) was down 7.4%.
Experts say losses from financial markets could total from $9.5 trillion to $10 trillion.
GDP growth (economic growth or decline) has slowed from Trump’s strong growth of 4.5% to Biden’s low of 2.9%.
Biden’s under-the-radar regulations are hurting the economy in a big way. Here are a few of the regulations he’s put in place since taking office:
- Biden’s new regulations on methane emissions from oil and gas production, transmission, storage, and distribution will cost taxpayers more than $1 billion annually.
- Biden’s executive order stopped all new oil and gas leases on federal lands and waters, resulting in higher energy costs for the American people.
- Biden imposed new regulations on building and manufacturing, making building things too expensive and stifling economic growth.
- Biden’s reforms to the Endangered Species Act increase red tape and allow frivolous lawsuits to slow down farming, building, and energy projects.
- Biden implemented the EPA’s new rule regulating greenhouse gas emissions from cars and trucks, raising the average vehicle price by $1,000.
The Biden administration is “The most anti-growth administration of the past 40 years,” said Adam Millsap, economic writer for Forbes.
Executive orders and regulations strangle existing businesses, stifle new enterprise, and destroys jobs, wages, innovation and more.
Cause #3—Tax Hikes… Seen and Unseen Impact on Everyone
Rising taxes hurt the middle class and make it more difficult to invest and save.
And business taxes slow economic growth, kill jobs, and stifle new innovation.
For example, Biden signed a climate, health care, and tax bill that creates new natural gas and home heating taxes. It also includes new taxes on manufacturing, increasing the costs of goods and services.
And the National Association of Manufacturers estimates that Biden’s 15% minimum corporate tax will lead to fewer blue-collar manufacturing jobs over the next decade.
Cause #4—Bad Fed Policies
The Federal Reserve has massively expanded the money supply, lowering the value of the dollar and causing prices to rise.
To help stop rising prices, Fed policymakers are raising interest rates from 0% to 4.75% in the past year, and they will raise rates again.
Business borrowing is dramatically slowing, resulting in an economic recession.
Unfortunately for new homebuyers, the Fed’s rate hikes have caused 30-year fixed mortgages to rise from 3.22% to 6.48% or more, raising the cost of owning a home.
People are paying more on credit card debt as interest rates rise, making paying off their balances even more difficult. Then they must try to borrow more money to pay the interest, which keeps growing as they mount more and more debt.
And the Fed’s failed historic experiment with increasing the money supply has been a disaster, spiking prices and sending us into a recession— or a period of stagflation.
You are poorer today.
And unless there is a dramatic turnaround, you’ll be poorer tomorrow.
Pro-socialist ideology is hurting us all.
What do you think? Email me at firstname.lastname@example.org.
Read another article here: What Every American Should Know About the Debt Limit Crisis