06.28.23

The Painful Reality Of ‘Bidenomics’

President Biden’s Economic Policies Have Left Americans Financially Worse Off Thanks To Decades-High Inflation Coupled With High Energy Prices While Polling Consistently Shows Citizens Are Not Buying The White House’s Political Spin

“With a series of announcements and a campaign-style swing that is set to run past the 4th of July, President Biden is launching a new effort to sell his economic record to a country that remains wary…. The president will headline multiple events himself with the centerpiece being a stop in Illinois Wednesday where he is set to deliver an address to his economic vision — and also adopt the term ‘Bidenomics’. ‘I don’t know what the hell that is,’ Biden joked of the Bidenomics label in a recent speech. ‘But it’s working.’” (“Biden Kicks Off A Summer Effort To Sell His Economic Record With ‘An Unprecedented Investment In Broadband,’” Yahoo News, 6/26/2023)

 

Big-Spending ‘Bidenomics’ Kicked Off The Highest Inflation In Four Decades, Leaving American Families Paying More For Everything

CLAIM: ‘The Annual Inflation Rate Is Falling’

THE WHITE HOUSE: “The annual inflation rate is falling.” (“Bidenomics,” The White House, 6/22/2023)

REALITY: ‘The Original Sin Was The $1.9 Trillion American Rescue Plan [Which] Contributed Materially To Today’s Inflation Levels’

STEVEN RATTNER, Former Obama Administration Counselor to the Treasury Secretary: “This is Biden’s inflation and he needs to own it.” (Steve Rattner, @SteveRattner, Twitter, 3/10/2022)

REALITY: The Cumulative Effect Of Inflation Since President Biden Took Office Has Americans Paying Significantly Higher Prices For Food, Energy, Transportation, Housing, And More

Since President Biden took office, inflation has increased 16%. (Bureau of Labor Statistics, Accessed 6/13/2023)

Indeed, Americans Have Been Suffering From The Effects Of High Inflation For Over Two Years Now

May 2023 was the 26th straight month that year-over-year inflation was at least 4%, double the target rate of 2%. (Bureau of Labor Statistics, Accessed 6/13/2023)

REALITY: ‘[I]nflation Is Still Well Above Normal Levels, And The Looming Question Is Whether High Price Increases Will Become A Permanent Feature Of The Economy’

“[I]nflation is still well above normal levels, and the looming question is whether high price increases will become a permanent feature of the economy — or whether more economic pain is necessary for policymakers to root out persistent inflation.” (The Washington Post, 6/13/2023)

“[P]olicymakers are still fearful that inflation could become a permanent threat to workers and families who are also facing tighter credit conditions, rising loan payments and uncertainty about a recession.” (The Washington Post, 5/10/2023)

REALITY: Americans Are Still Feeling The Sting Of Inflation During Every Trip To The Grocery Store

“US grocery prices ticked up in May … From April to May, adjusted for seasonal swings, grocery prices got 0.1% more expensive, according to the Bureau of Labor Statistics’ Consumer Price Index, a key measure of inflation. Overall, grocery prices were 5.8% more expensive in May than they were a year ago. Menu prices have risen 8.3% over the past year. Together, food prices jumped 6.7% throughout the year, once again outpacing overall annual inflation, which came in at 4%.” (“Grocery Prices Are Rising In America Again. Here’s What Got More Expensive,” CNN Business, 6/13/2023)

 

In Joe Biden’s Economy, Americans Are Worse Off Financially

CLAIM: ‘Family Economic Security Is Stronger Than Pre-Pandemic’

THE WHITE HOUSE: “Family economic security is stronger than pre-pandemic.” (“Bidenomics,” The White House, 6/22/2023)

REALITY: Inflation Has Eroded The Financial Security Of American Households

REUTERS: ‘Inflation Has Eroded US Households' Financial Security, Fed Survey Shows,’ (“Inflation Has Eroded US Households' Financial Security, Fed Survey Shows,” Reuters, 5/22/2023)

  • “The inflation wave that crested at a 40-year high last year and remains elevated has eroded U.S. households’ sense of financial security, the Federal Reserve reported [May 22nd], with many saying they had reduced their savings to make ends meet, felt less secure about retirement, and had delayed purchases or swapped into cheaper products as they shopped. In an annual survey showing the corrosive effects of inflation on Americans' economic confidence, the Fed said the percentage of respondents who said they were doing ‘at least okay financially’ in 2022 tumbled by 5 percentage points - the most since the survey was launched a decade ago - to 73%. It had stood at a record high the year before.” (“Inflation Has Eroded US Households' Financial Security, Fed Survey Shows,” Reuters, 5/22/2023)

CNBC: ‘Amid Inflation, More Middle-Class Americans Struggle To Make Ends Meet,’ (“Amid Inflation, More Middle-Class Americans Struggle To Make Ends Meet,” CNBC, 1/18/2023)

CNBC: ‘70% Of Americans Are Feeling Financially Stressed, New CNBC Survey Finds,’ (“70% Of Americans Are Feeling Financially Stressed, New CNBC Survey Finds,” CNBC, 4/11/2023)

  • “Inflation, economic instability and a lack of savings have an increasing number of Americans feeling financially stressed. Some 70% of Americans admit to being stressed about their personal finances these days and a majority — 52% — of U.S. adults said their financial stress has increased since before the Covid-19 pandemic began in March 2020, according to a new CNBC Your Money Financial Confidence Survey conducted in partnership with Momentive.” (“70% Of Americans Are Feeling Financially Stressed, New CNBC Survey Finds,” CNBC, 4/11/2023)
  • “Between higher costs and a possible recession on the horizon, families feel increasingly strained financially. More than half, or 58%, of all Americans are now living paycheck to paycheck, according to the CNBC Your Money Financial Confidence Survey, conducted in partnership with Momentive. And even more — roughly 70% — said they feel stressed about their finances, mostly due to inflation, economic uncertainty and rising interest rates, the survey found.” (“70% Of Americans Are Feeling Financially Stressed, New CNBC Survey Finds,” CNBC, 4/11/2023)
  • “The cost of the basic household expenses — rent, groceries and utilities — are all higher than a year ago, weakening consumers’ purchasing power. Nearly 60% of respondents cited inflation as the main contributor to their financial stress, followed by economy-wide instability (43%), rising interest rates (36%) and a lack of savings (35%), according to the survey of 4,336 adults, which was conducted at the end of March.”  (“70% Of Americans Are Feeling Financially Stressed, New CNBC Survey Finds,” CNBC, 4/11/2023)
  • “A combination of higher prices for basic goods and services, increasing borrowing rates on credit cards, auto loans, mortgages and other debt, and little or no financial cushion is eating away at people’s sense of financial security. Only 45% of U.S. adults said they have an emergency fund. And, for those who do have emergency savings, about 26% polled said they have less than $5,000 saved.” (“70% Of Americans Are Feeling Financially Stressed, New CNBC Survey Finds,” CNBC, 4/11/2023)
  • “[T]he percentage of people’s paycheck going into savings has fallen to about half of what it was prior to the pandemic, according to data from the Federal Reserve Bank of St. Louis.  Meanwhile, the amount of debt Americans are carrying has soared. Credit card balances increased by $61 billion to a record high of $986 billion in the last quarter of 2022 — a rapid reversal from two years ago … according to data from New York Federal Reserve. Auto loan balances rose by $94 billion.” (“Shrinking Savings And Rising Debt Leave Consumers On Shaky Financial Footing,” NBC News¸ 3/18/2023)

REALITY: Americans Have Accrued Record-High Credit Card Debt

THE HILL: ‘Americans Owe $1 Trillion In Credit Card Debt’ (“Americans Owe $1 Trillion In Credit Card Debt,” The Hill, 5/30/2023)

  • “A typical American household now carries $10,000 in credit card debt, by one estimate, another record. If that doesn’t sound like a lot of debt, try paying it off. At $250 per month, with 24 percent interest, you’ll be making payments until 2030, and you’ll spend a total of $20,318, twice what you owed. And that assumes you never use the card again. ‘It’s hard to build wealth when you’re paying 20 percent interest every month,’ said Ted Rossman, a senior industry analyst at Bankrate.com.  The nation’s credit card debt stands at $986 billion, according to the Federal Reserve. The figure has climbed by $250 billion in two years. Some other estimates range higher. A WalletHub report put total card debt at $1.2 trillion at the end of 2022. Just two years ago, the national credit card narrative seemed headed in the opposite direction. Card balances declined from about $850 billion at the start of 2020 to less than $750 billion in the spring of 2021, a time of pandemic penny-pinching and federal stimulus-payment largesse.” (“Americans Owe $1 Trillion In Credit Card Debt,” The Hill, 5/30/2023)
  • “Americans continue to bury themselves in credit card debt this year, with the latest total balance inching close to $1 trillion. U.S. consumers now owe $986 billion on their charge cards, according to Federal Reserve Bank of New York data released Monday. That's a 17% jump from a year ago and a record high, analysts at Bankrate said. The debt keeps piling up partly because stubbornly high inflation is forcing households to lean on their credit cards to cover monthly expenses, financial experts said. ‘High inflation is certainly contributing to Americans' high credit card balances, along with record high interest rates,’ Ted Rossman, senior industry analyst at Bankrate said. ‘More than a third of U.S. adults have more credit card debt than emergency savings, the highest since we started tracking this in 2011.’ Total credit card debt reached the same mark during the final months of 2022, and the balance remained unchanged in the first quarter of 2023, the Fed data shows. That's noteworthy because households typically rack up debt to pay for holiday festivities, then pay off balances by spring.” (“Americans Continue To Pile Up Credit Card Debt, Edging Close To $1 Trillion,” CBS News, 5/15/2023)

“U.S. households have been whittling down their savings and taking on increasing amounts of debt, putting many in a weaker position to weather an economic downturn that has grown all the more likely following recent turmoil in the banking industry.” (“Shrinking Savings And Rising Debt Leave Consumers On Shaky Financial Footing,” NBC News¸ 3/18/2023)

  • “There are signs that a growing number of consumers have been having a harder time paying down that debt. The percentage of credit card holders carrying debt from month to month has increased to 46%, up from 39% a year ago, according to Bankrate. Auto loan delinquencies have been steadily rising from their pandemic lows with the share of auto loans at least 60 days overdue at its highest level since 2006, according to a report [in February] from Cox Automotive.” (“Shrinking Savings And Rising Debt Leave Consumers On Shaky Financial Footing,” NBC News¸ 3/18/2023)

 

Joe Biden’s Energy Policies Continue To Make It More Expensive For Americans To Fill Up Their Cars And To Heat And Cool Their Homes

CLAIM: ‘Americans Are Feeling Relief At The Pump’

THE WHITE HOUSE: “Americans are feeling relief at the pump …” (“Bidenomics,” The White House, 6/22/2023)

REALITY: Since Biden Took Office, Gas Prices Are Still Over $1.20 More Expensive

According to the Energy Information Administration (EIA), the weekly national retail gasoline price on January 18, 2021 was $2.379 per gallon. (U.S. Energy Information Administration, 6/26/2023)

As of June 26th 2023, the EIA reported that the weekly national retail gasoline price was $3.571 per gallon. (U.S. Energy Information Administration, 6/26/2023)

In fact, the White House graph leaves out an increase of nearly a dollar per gallon that happened between January 2021 and January 2022. (U.S. Energy Information Administration, 6/26/2023)

CLAIM: ‘[W]e Have Reduced Heating And Electricity Bills So Folks Have More Money In Their Pocket’

VICE PRESIDENT KAMALA HARRIS: “Every day, Joe Biden and I talk about and work together with our partners … to lower the cost for the people of our nation, because you are a leader. For working families, we have reduced heating and electricity bills so folks have more money in their pocket to buy things like school supplies, replace the dishwasher, or take a family vacation.” (Vice President Harris, Remarks, 2/22/2023)

REALITY: Energy Prices Have Soared Since Biden Took Office

Since President Biden took office, energy prices have increased 36%. (Bureau of Labor Statistics, Accessed 6/13/2023)

REALITY: Electricity Costs Are Expected To Increase Even More This Summer

“[E]lectricity costs continue to heat up. The typical power bill is set to rise about 2% this summer from a year ago, according to the Energy Information Administration…. Most of the electricity in the U.S. — about 40% — is produced by burning natural gas, the cost of which spiked to a 14-year-high last fall before dropping early in 2023.” (CBS News, 5/30/2023)

“Power costs vary across the nation, with the average cost of electricity in New England being double that of the cheapest region — the Mountain West. New Englanders should see a typical monthly bill of about $180 this summer, the EIA predicted, which is $14 higher than last year. ‘The New England power market experienced record-breaking cold weather this past winter and — combined with limited natural gas pipeline capacity — added upward pressure to natural gas prices, which ultimately affects regional electricity prices,’ the EIA said.” (CBS News, 5/30/2023)

REALITY: The Biden Administration’s Green New Deal Regulations Have Left The American Energy Grid Less Reliable, Putting ‘Two-Thirds Of North America … At Risk Of Energy Shortfalls This Summer’

“The heatwave leaving tens of millions of Americans in sweltering temperatures will test the power grid’s ability to keep the lights on. Periods of extreme heat stress the grid by spiking demand for electricity as families and businesses crank up the air conditioning to stay cool. Just as demand surges, supply can simultaneously be constrained by problems at power facilities caused by those same sizzling temperatures. Power grid officials have warned that large swaths of the United States could face blackouts if it’s a hot summer. ‘Two-thirds of North America is at risk of energy shortfalls this summer during periods of extreme demand,’ the North American Energy Reliability Corporation (NERC) concluded in its summer outlook published last month. According to NERC, virtually the entire United States west of the Mississippi River could suffer energy shortages during ‘extreme conditions.’ That includes the Western half of the United States, the Central region and the power system that serves most of Texas. New England and Ontario are also at ‘elevated’ risk of blackouts, NERC said.” (“Extreme Heat Means Two-Thirds Of North America Could Suffer Blackouts This Summer,” CNN Business, 6/26/2023)

“‘The elevated risk outlook is driven by a combination of conventional generation retirements, a substantial increase in forecast peak demand and an increasing threat to reliability from a widespread heat event,’ NERC said.” (“Extreme Heat Means Two-Thirds Of North America Could Suffer Blackouts This Summer,” CNN Business, 6/26/2023)

“NERC also flagged concerns about new environmental rules that restrict power plant emissions, warning these regulations will limit the operation of coal-fired generators in 23 states, including Nevada, Utah and states along the Gulf Coast, mid-Atlantic and Midwest. This is the first summer since the implementation of the EPA’s Good Neighbor Plan, which aims to reduce cross-state smog from power plants and other industrial sites.” (“Extreme Heat Means Two-Thirds Of North America Could Suffer Blackouts This Summer,” CNN Business, 6/26/2023)

 

Working American Families Don’t Buy The White House’s Out-Of-Touch Economic Spin At All

CLAIM: Biden: ‘Our Economic Plan Is Working’

PRESIDENT BIDEN: “Our economic plan is working! We now have to finish the job and there’s more to do.” (Joe Biden, Remarks, 4/25/2023, Video Begins at 4:03)

REALITY: Americans Have A Dim View Of Biden’s Handling Of The Economy

“It’s a feature of Biden’s 2024 re-election effort so far that is surely causing heartburn in his inner circle: not only are the president’s overall approval ratings low but voters usually rate his performance on the crucial issue of the economy even lower. Here are just a few examples from recent weeks. A Harvard/Harris poll has Biden’s approval rating at 43% with his economic rating down at 39%. A CBS/YouGov survey has the president with an approval rating of 41% and an economic rating down at 36%. Reuters/Ipsos has the numbers coming in at 41% and 35%, respectively.” (“Why Biden Polls So Low On The Economy — And What He Is Trying To Do About It,” Yahoo!Finance, 6/18/2023)

“As Americans look ahead to another Independence Day and a likely contentious 2024 presidential election, many are feeling fiscal pain as the prices of food, shelter, healthcare and transportation climb higher than their paychecks. About 52% of Americans participating in a USA TODAY/Suffolk Poll said the United States is too expensive to live in. And about seven in 10 Americans said stifling inflation and the economy are the nation's top problems today, according to a new Pew Center survey. A majority across age, gender and race told Pew inflation is ‘a very big problem.’ ‘Their spending power has been minimized,’ said Gene Ludwig, former head Comptroller of the Currency, a  U.S. Treasury Department bureau.” (“Is The US Getting Too Expensive To Live In? Many Americans Worry About Economy, Inflation,” USA Today, 6/28/2023)

“Confidence in the economy remains low. A recent Pew Research Center survey ranked inflation as the public’s top concern, with Biden’s overall job approval mired at 35 percent.” (“Biden Puts All His Chips On The Table With A Push On ‘Bidenomics,’” Politico, 6/27/2023)

A Reuters/Ipsos poll released on May 10th found 59% of Americans disapprove of President Biden’s handling of the economy. (Reuters/Ipsos Poll, 5/10/2023)

A May 2023 Gallup poll found that confidence in President Biden to do or recommend the right thing for the economy was the lowest for a president since the 2008 financial crisis. (“Americans Lack Confidence in Major Economic Leaders,” Gallup, 5/09/2023)

“Even though the unemployment rate has been low, below 4%, since January of 2022, only 18% of respondents rated the national economy as ‘good’ or ‘excellent,’ down from 50% as of 2019.” (“Inflation Has Eroded US Households' Financial Security, Fed Survey Shows,” Reuters, 5/22/2023)

Fox News: ‘Fox News Poll: 9 In 10 Voters Worried About Inflation, America’s Future’ (“Fox News Poll: 9 In 10 Voters Worried About Inflation, America’s Future,” Fox News, 5/31/2023)

 

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SENATE REPUBLICAN COMMUNICATIONS CENTER

Related Issues: Economy, Inflation, Green New Deal, Energy