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Voters Reel as Biden's "Miracle Economy" Fails to Deliver

Voters Reel as Biden's "Miracle Economy" Fails to Deliver

Jun 26, 2024

Voters Reel as Biden's "Miracle Economy" Fails to Deliver

As the Biden administration heralds its economic achievements, the American populace grapples with a harsher reality – a "miracle economy" that seems to work against them.

Despite the administration's optimistic narrative, the data indicates a disconnect. Disposable income has taken a nosedive, plummeting by $1.4 trillion over the past three years. This drop is exacerbated by inflation's relentless climb, leaving Americans with thinner wallets. Wages have stagnated, with a meager 0.7% increase over four years, which is essentially negligible when adjusted for inflation.

The situation is dire for small business owners and workers alike, who are facing reduced hours as they navigate through economic challenges. To compound the issue, an increasing portion of official earnings is comprised of welfare payments, a source of income that doesn't carry the same weight as a salary earned from employment. During the pandemic, welfare spending surged by $800 billion, and it shows no signs of abating. Consequently, government transfers now constitute an alarming 20% of personal income.

Housing, a critical and persistent component of inflation, has also been hit hard. Costs have soared, doubling during the pandemic, pushed by Federal Reserve policies that inflated house prices and spiked mortgage rates to 7.5%. While rent contracts often have longer terms, the delayed impact is now taking a toll, with rent inflation enduring for 32 months and counting. This relentless rise in housing costs is eroding the disposable income of renters, among whom Blacks and Hispanics are disproportionately represented. With the midterm elections looming, the economic squeeze could dampen support for Biden from these key voter groups.

The administration's response to the mounting economic pressure has been less than reassuring. Rather than addressing the systemic issues, there has been a pivot towards media narratives that downplay the severity of the situation, prompting accusations of engaging in propaganda.

As the economy teeters, the specter of a recession looms, threatening to submerge consumers already gasping for financial air. Inflation, stubbornly persistent, has seen expectations rise to unprecedented levels since the onset of what's been dubbed the "great Biden inflation." Should this trend persist, the current discontent among voters is likely to intensify.


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