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Americans have lost an average of $4,200 in annual income since Biden took office: Study exposes how profits have been wiped out under Trump – as crippling inflation pushed prices up
- Consumer prices have risen 12.7 percent since 2021, much faster than wages
- Heritage Foundation experts believe this cost Americans about $3,000 each in purchasing power
- As the Fed pushes interest rates to a 3-3.25% range, higher borrowing costs are putting pressure on Americans on mortgages, auto loans and credit cards
- The $4,200 loss wipes out the $4,000 increase in annual revenue that occurred under the Trump administration
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According to an analysis by the Heritage Foundation, the average American has lost $4,200 in income due to rising inflation and rising interest rates.
Experts at the right-wing think tank analyzed data on consumer prices and Federal Reserve interest rates. Consumer prices have risen 12.7 percent since 2021, much faster than wages, and Heritage experts believe it cost Americans about $3,000 each in purchasing power.
As the Fed pushes interest rates to a 3-3.25% range, higher borrowing costs are pushing Americans on mortgages, auto loans and credit cards, costing another $1,200 a year.
The $4,200 loss wiped out the $4,000 increase in annual revenue that occurred under the Trump administration, according to Heritage.
“Instead of correcting the rate more than a year ago when inflation started to rise, the Biden administration and Congress continued the riotous spending wave and the Fed ran the printing presses,” said EJ Antoni, who found the data. in a statement. “Many Americans have taken on extra debt to meet the increased cost of living. Now the Fed is finally fighting inflation, causing interest rates to rise and borrowing costs to rise. The rates on all kinds of consumer debts are rising.’
The new figure represents and rises from the $3,400 loss of earnings for the average U.S. worker that Heritage found in July.
Wage growth in the US has risen to its highest point in years, but most American workers say their wage increases are not keeping pace with the rise in the cost of everyday goods.
According to Bankrate, 55 percent said their income has not kept pace with inflation, as the consumer price index stands at 8.3 percent in August. Just under half of working Americans say they’ve received pay increases in the past 12 months.
Only 2 in 5 employees who received or received a raise. a higher paying job says their income has kept pace or increased faster than their expenses.
August’s inflation rate of 8.3% was down from a 40-year high of 9.1% in June and 8.5% in July, but showed that inflation is still high and well above its target. the 2% Fed
Groceries prices are up 13.5% from a year ago, the largest annual increase since 1979, latest CPI data shows
The costs of groceries, rent and mortgage interest have hit Americans the hardest lately.
Food prices are up 13.5 percent from last year, the largest annual increase since February 1979. Housing costs also continued to rise, with rents rising 6.7 percent in the past 12 months.
Gas prices, although they fell from more than $5 in June, are still 26 percent higher than last year.
This week, Federal Reserve chairman Jerome Powell warned that it would be “extremely challenging” to contain inflation without significant job losses. The Fed has launched another massive rate hike to raise interest rates by 75 basis points to the highest level since the 2008 financial crisis as it struggles to bring price increases back to the two percent target.
The US economy has been showing warning signs for some time, including six straight months of shrinking GDP in the first half of the year, meeting an informal definition of a recession — but Biden denies that a recession has begun.