Staff Reports
A stunning 49 percent of Americans are feeling the sting of rising inflation under Joe Biden, as it eats away at their living standards. According to the University of Michigan Surveys of Consumers, concerns about inflation have resurfaced after briefly stabilizing earlier this year. The survey reveals that nearly half of those polled in early October stated that high prices are eroding their standard of living. This number has increased from last month’s 39 percent and matches the all-time high recorded in July 2022. It appears that the American people are feeling the effects of Biden’s economic policies and are not happy about it.
Record 49% of Americans Say Living Standards Are Eroding under Bidenhttps://t.co/xPbHbs57c7
— The Daily Fetched (@DailyFetched) October 13, 2023
The alarming rise in prices, as indicated by the Consumer Price Index (CPI), has been a cause for worry among the public. Inflation has shot up at an alarming pace throughout 2021, narrowly missing the psychological barrier of 10 percent by mid-2022. While it briefly peaked at 9 percent in June 2022, it later fell to 3.1 percent by June 2023. However, it has since jumped back up to 3.7 percent, reigniting concerns about inflation. With a record number of consumers expressing their worries about high prices affecting their standard of living, it is clear that the Biden administration’s economic policies are falling short.
Not only are consumers concerned about the current high prices, but their expectations for future inflation have also risen. The year-ahead inflation expectations have jumped from 3.2 percent last month to 3.8 percent in October, indicating that consumers do not see any relief in sight. Even longer-term inflation expectations have increased, climbing from 2.8 percent to 3.0 percent. This data suggests that consumers believe higher levels of inflation are here to stay, which does not bode well for the economy. It seems that Biden’s inability to address the inflation crisis is causing long-term damage to the American people’s confidence in his leadership.
The Federal Reserve, faced with the challenge of soaring inflation, has responded by hiking interest rates at a rapid pace. Rates have gone from near zero in March 2022 to the current range of 5.25-5.5 percent. However, even with these rate increases, stresses are starting to show in banking activity and the housing market. Fed officials have warned that further rate hikes may be necessary if inflation data does not improve. It seems that despite the Fed’s efforts, the inflationary pressures have not been subdued, and the American people will continue to face economic hardships.
The University of Michigan survey also revealed a significant decline in overall consumer sentiment, which plunged 7 percent in October after two months of relatively little change. Assessments of personal finances saw a decline of about 15 percent, primarily due to concerns about inflation. Expectations for future business conditions also took a hit, with a plunge of about 19 percent. This data aligns with other recent reports that suggest the U.S. consumer is on shaky ground. The New York Fed reported that U.S. households are financially worse off than they were a year ago, and future inflation expectations have also risen. It is clear that Americans are feeling the effects of Biden’s economic policies, and their confidence in the economy is waning.
It’s not just surveys that are showing a decline in consumer confidence; remarks made by former CEO of Walmart, Bill Simon, echo similar sentiments. Simon stated that a combination of factors, including political polarization, inflation, and high interest rates, are eroding consumer confidence and their willingness to spend. This is a significant concern, as consumer spending drives about two-thirds of the U.S. economy. If consumers are too wary to spend, it could have severe consequences for economic growth. It’s clear that Biden’s policies are having a negative impact on the American people and their livelihoods, and something needs to change.
