OP-ED: The Struggling US Economy

OP-ED: The Struggling US Economy

Jim Nelles

The Washington Post recently published an article titled, “The economy is improving under Biden. But many voters aren’t giving him credit.” The Post credited six writers on the story’s byline. Six writers to compose an article that hypothesizes the economy is doing great, but voters are too stupid to realize how well things are?

This is what happens when people whose entire world revolves around the dinner parties of the Washington elite try to understand working-class Americans.

An examination of the data below the headlines shows that Americans continue to struggle under America’s economy and Biden’s self-named Bidenomics.

In December 2023, the inflation rate was 3.4%, as measured by the consumer price index. Television pundits and government spokespeople celebrated, pointing out that in December 2022, the inflation rate was at 6.4%, and thus inflation is under control.

This is a flawed argument that only holds water in the Washington, D.C. bubble.  Inflation is not decreasing; the rate of increase is slowing.

Washington bureaucrats make the same false argument when discussing budget cuts, citing the reduction in the growth of spending as cost reductions, which they are not.

The fact is that compared to December 2021, inflation is up nearly 10%. And, while the rate of inflation growth has fallen significantly since its high of 9.1% in June 2022, compared to January 2021, prices are up more than 17.5%.

When one examines the “basket of needs,” those household expenses that must be incurred in order to live: food, shelter, and energy, inflation is not just bad, it is devastating.

This is especially true for low-income Americans for whom these expenses represent a greater percentage of income than for those who are more financially secure.

Per Fox Business, since the start of 2021, food prices are up 33.7%, shelter costs are up 18.7%, and energy prices are up a staggering 32.8%.

To put this into perspective, the typical American household must spend “an additional $11,434” annually just to maintain the same standard of living they enjoyed in January 2021.”

These inflation numbers are more than just statistics. The impact on working Americans is catastrophic.

The Federal Reserve Bank of New York reports that total household debt is at a record $17.29 trillion, while credit card debt is also at record highs, topping $1.2 trillion.

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