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Americans lost $4.2k in income under Biden: report

The average American has lost $4,200 in annual income since President Biden took office, entirely wiping out gains made under the Trump administration, according to an analysis by the Heritage Foundation.

The losses were driven by soaring inflation and rising interest rates, experts at the conservative think tank said in a report on Thursday.

Their analysis found that the average American has lost about $3,000 in annual purchasing power because consumer prices, which have risen 12.7% since January 2021, have risen much faster than wages.

Wages have risen only 8% over the same period, which has effectively taken a pay cut for Americans who struggle to pay for daily necessities including food, gas and rent.

Rising interest rates and borrowing costs also reduced average purchasing power by another $1,200, the report said.

A Heritage Foundation report suggests that Americans have lost about $4,200 in income so far in President Biden’s term.
AP Photo/Evan Vucci

“Put simply, American workers are $4,200 poorer today than when Biden took office,” said EJ Antoni, a regional economics researcher at the Heritage Foundation’s Center for Data Analysis.

“This financial disaster for American families is the direct result of a President and Congress addicted to spending our money, combined with a Federal Reserve that enables that addiction by printing more dollars.”

Under the Trump administration, Heritage said the American’s average annual earnings increased by $4,000.

Americans spent less on groceries due to record inflation.
Americans spent less on groceries due to record inflation.
Brandon Bell/Getty Images
Former US President Donald Trump
The Heritage Foundation says Americans’ incomes have increased by $4,000 under the Trump administration.
REUTERS / Gaelen Morse

Antoni said Americans are in a “vicious spiral” and many have taken on additional debt to meet the rising cost of living.

“Now the Fed is finally fighting inflation, which is driving up interest rates and raising funding costs,” he said. “Rates on all kinds of consumer debt are rising. Mortgage interest rates have doubled since Biden took office, dramatically increasing Americans’ monthly payments.

Concerns about lingering inflation were renewed this month when federal data showed consumer prices rose 8.3% in August from the same month a year earlier – a figure higher than what economists expected.

A person buys gasoline at a Shell station on September 12, 2022 in Bensenville, Illinois.
Republicans have lambasted President Biden for his energy causing high gas prices.
Scott Olson/Getty Images

Biden played down the worse-than-expected data, suggesting an improvement in gasoline prices was a sign that inflation has started to moderate.

“Today’s data shows more progress in reducing global inflation in the U.S. economy,” Biden said in a statement last week.

“Overall, prices have remained essentially stable in our country for the past two months: this is good news for American families, with more work to do.”

New York Post

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