President Biden has made numerous claims about economic progress, most of which are not supported by independent information and statistics.
Generally, the media would address the difference between a White House claim and reality. However, in its partisan support for the 46th president, it has been relatively silent, with only a few exceptions.
A review of the facts reveals an economy that has become worse since Biden took office.
Inflation: the Consumer Price Index (CPI) report for September stated inflation grew at a rate of 3.7 percent and cumulative inflation under President Biden grew to a staggering 17.1 percent. The cost of living has accelerated dramatically under the current president. A family of four is paying $15,133 per year, or $1,261 per month, more to purchase the same goods and services compared to the day he took office. The average cost of a gallon of gas was 2.372, compared to $3.09 today. The average cost of weekly groceries continues to grow, overall grocery prices was 11.3% higher in January 2023 compared to January 2022.
According to House Budget Committee Chairman Jodey Arrington (R-TX) “Hardworking families are being crushed by President Biden’s inflation-inducing fiscal policies. Today, a family of four is paying $15,133 per year, or $1,261 per month, more to purchase the same goods and services compared to the day President Biden took office. Every day, they are being forced to choose between medicine or the rent, putting food on the table or gas in the car.
Wages: real wages are lower today than they were at the beginning of Biden’s presidency in January 2021.There are various ways to measure real wages. Real average hourly earnings declined 1.7% between December 2021 and December 2022, while real average weekly earnings (which factors in the number of hours people worked) declined 3.1% over that period.
Debt: The New York Federal Reserve found that “Total household debt rose by $16 billion to reach $17.06 trillion in the second quarter of 2023, according to the latest Quarterly Report on Household Debt and Credit. Credit card balances saw brisk growth, rising by $45 billion to a series high of $1.03 trillion. Other balances, which include retail credit cards and other consumer loans, and auto loans increased by $15 billion and $20 billion, respectively.
Biden also alleges that he has reduced the federal deficit. Again, the facts don’t support the claim. CNN’s Dan White, senior director of economic research at Moody’s Analytics – an economics firm whose assessments Biden has repeatedly cited during his presidency – told CNN’s Matt Egan in October: “On net, the policies of the administration have increased the deficit, not reduced it.” The Committee for a Responsible Federal Budget, an advocacy group, wrote in September that Biden’s actions will add more than $4.8 trillion to deficits from 2021 through 2031, or $2.5 trillion if you don’t count the American Rescue Plan pandemic relief bill of 2021.
Independent analysts and ratings organizations have taken note. In August, Fitch downgraded the U.S. credit rating. “The rating downgrade of the United States reflects the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to ‘AA’ and ‘AAA’ rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions.”
Prospects for reform under President Biden’s leadership are grim. The 46th president continues to use the U.S. Treasury as a political piggybank to accommodate his progressive supporters and to, in essence, buy votes. Despite the U.S. Supreme Court striking down the White Houses’ student-loan forgiveness program, noting that he lacks authority for such a move, the President has again promised to engage in similar action. He has burdened the states with massive new expenses resulting from his open border policies. His energy policies continue to keep the massive energy cost hikes he caused upon his inauguration excessively high.
The media criticism which would normally persuade a course change in an administration remains muted, as it seeks to limit support for GOP candidates.
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