published : 2023-11-16
Bidenomics Failing to Resonate with Americans: The Struggle of the Working Class
Declining Support and Economic Challenges Raise Concerns
The American economy continues to stumble along, with mixed results at different levels. While macroeconomic indicators may suggest progress, the reality for working Americans is quite different.
Inflation remains a pressing concern, surpassing Wall Street's expectations for October. High-interest rates, a struggling housing market, and soaring credit card debt add to the burdens faced by ordinary citizens.
Surprisingly, the Biden administration consistently promotes the idea of a strong economy through its Bidenomics policies. However, recent polls indicate that this messaging is not resonating with voters.
In fact, a mere two percent of voters in battleground states consider the economy excellent. More than half of voters under 30, Hispanics, women, and individuals across all income brackets express more trust in former President Trump when it comes to handling economic matters.
The persistent inflation is a significant worry, with prices continuing to rise well above the Federal Reserve's target of 2.0 percent. In October 2023, the Consumer Price Index (CPI) increased by 3.2 percent compared to the previous year. Shockingly, the CORE CPI, which excludes volatile variables like fuel and food, rose by 4 percent.
It is crucial to acknowledge that the CPI in October 2022 was a staggering 7.7 percent, meaning that prices today are nearly 11 percent higher than they were in 2021. These figures may go unnoticed by financial pundits on television, but for working Americans trying to make ends meet, they are keenly felt.
The Bureau of Economic Analysis recently revised its estimates, revealing a decline in household disposable income and an increase in personal consumption. American families have lost around $7,000 in spending power during President Biden's tenure. With the average annual income sitting at $71,000, this loss is significant and could impact the upcoming holiday season, as experts predict sluggish spending due to financial constraints.
Financial struggles extend beyond decreased disposable income. Many Americans find themselves dipping into savings and retirement funds just to cover basic necessities. Shockingly, nearly 33 percent of individuals have less than $100 in their savings accounts, and only 40 percent can afford a $1,000 emergency expense. Emergency 401K withdrawals have surged by 27 percent this year.
Credit card debt is also skyrocketing, surpassing $1 trillion. A Clever Real Estate survey found that 61 percent of Americans are in credit card debt, owing an average of $5,875. Moreover, 23 percent confess to accumulating more credit card debt each month, and 14 percent have missed payments in 2023. The debt is no longer incurred for luxury items but rather for essential needs such as groceries, rent, and utilities.
The housing market is another area of concern, as homebuilder sentiment hits a 10-month low due to soaring mortgage rates. Thankfully, housing prices have remained fairly stable, primarily due to a lack of available inventory. However, the number of home purchase cancelations has reached 16.3 percent, equating to 53,000 canceled agreements in September. Additionally, home foreclosures are up by 34 percent year over year, with over 150,000 homes undergoing various foreclosure procedures in the last quarter. Automobile repossessions have also surged by over 20 percent.
While President Biden may strive to run for reelection on the strength of his economic policies, the reality is that many Americans are struggling. Despite working harder than ever, they find themselves further behind. The concerns outlined here illustrate the challenges faced by the working class, raising doubts about the effectiveness of Bidenomics.