09.26.23

This Week In The Failures Of Bidenomics

Americans Who Can’t Afford A New House Or Car And Keep Paying Ever-Higher Grocery Bills Know They’re Paying For ‘Bidenomics in Action’ And Overwhelmingly Give The President Abysmal Reviews On His Handling Of The Economy

Bidenomics: Americans’ Deep Dissatisfaction With Joe Biden’s Handling Of The Economy Is Reflected In Polls Showing ‘The Highest Disapproval Rating Of His Presidency’

“Biden has spent recent weeks promoting his economic record — ‘Bidenomics,’ as he calls it — and has cited low unemployment, infrastructure spending and investment in programs to deal with climate change among other indicators as evidence of success. But worries about inflation have persisted and, in the Post-ABC survey, his approval on handling the economy has dropped to 30 percent, the lowest of his presidency.” (“Post-ABC Poll: Biden Faces Criticism On Economy, Immigration And Age,” The Washington Post, 9/24/2023)

NBC NEWS POLL: “Yet what also stands out in the poll are the warning signs for Biden beyond his age — including an all-time high disapproval of his job performance, fewer than 4 in 10 voters approving of his handling of the economy and lagging interest in the election among key parts of the Democratic base.” (“Poll: Overwhelming Majorities Express Concerns About Biden, Trump Ahead Of 2024 Race,” NBC News, 9/24/2023)

ABC NEWS/WASHINGTON POST POLL: “President Joe Biden’s job approval rating is 19 points underwater, his ratings for handling the economy and immigration are at career lows.” (“Trump Edges Out Biden 51-42 In Head-To-Head Matchup: POLL,” ABC News, 9/24/2023)

USA TODAY/SUFFOLK UNIVERSITY POLL: “[O]nly 34% of Americans said they approve of Biden’s handling of the economy, compared with 59% who disapprove, according to the poll.” (USA Today, 9/13/2023)

Americans See The State Of The U.S. Economy As Abysmal

“74% of Americans described the economy negatively in one word ? either ‘horrible/terrible,’ ‘bad/poor,’ ‘struggling’ or ‘chaotic’ ? compared with 18% who said the economy is ‘excellent/good’ or ‘growing/improving.’ Another 4% said the economy is ‘fair/average.’” (USA Today, 9/13/2023)

“Nearly 70% of Americans said the economy is getting worse, according to the poll, while only 22% said the economy is improving.” (USA Today, 9/13/2023)

“Eighty-four percent of Americans said their cost of living is rising, and nearly half of Americans, 49%, blamed food and grocery prices as the main driver.” (USA Today, 9/13/2023)

  • “Directly below food prices as the main financial toll on families, 16% of Americans said housing costs are the biggest contributor to their rising costs of living, followed by utility bills and gas prices, each cited by 11% of Americans.” (USA Today, 9/13/2023)

‘A Record Number Of Americans Say They’ve Become Worse Off Under His Presidency’

“A record number of Americans say they’ve become worse off under his presidency…” (“Trump Edges Out Biden 51-42 In Head-To-Head Matchup: POLL,” ABC News, 9/24/2023)

“Three in 4 also have a negative perception of the state of the average American’s income. Asked whether they are better off financially than when Biden took office, not as well off or in about the same shape, 44 percent say not as well off, compared with 15 percent who say better off and 39 percent who say about the same.” (“Post-ABC Poll: Biden Faces Criticism On Economy, Immigration And Age,” The Washington Post, 9/24/2023)

Obviously, ‘Most Americans Aren’t Buying’ The White House’s Insulting Bidenomics Sales Job

“As Biden tries to sell Americans on an economic rebound, most Americans aren’t buying it, according to an exclusive poll from the Suffolk University Sawyer Business School and USA TODAY that reveals major concerns about the state of the economy and little hope of people’s outlook improving.” (USA Today, 9/13/2023)

  • “The poll’s findings expose a major disconnect between the way Biden describes the economy and how a majority of Americans feel about it.” (USA Today, 9/13/2023)

“Groceries. Housing. Gas. All of these are pushing people further and further into debt, they say.” (USA Today, 9/13/2023)

  • “Linda Muñoz is scared about the economy. She dipped into her emergency savings this year. And she doesn’t believe President Joe Biden feels her pain. The retired teacher from Channelview, Texas, worries about paying $4 for cereal and $3.38 for gasoline in her state.” (USA Today, 9/13/2023)
  • “‘It’s getting harder to survive out there with the little bit of money that we do make,’ said Casey Lafi, 43, a waitress at a diner in Philadelphia who lives with her husband, a veteran who is disabled, and a 15-year-old daughter. Lafi, who voted for Biden in 2020, said her family’s food budget has skyrocketed from $800 to $1,500 a month. ‘Eggs are ridiculous,’ she said, also singling out prices for fruit, vegetables and milk.” (USA Today, 9/13/2023)
  • “‘Food prices are going up. The rental prices are sky-high. The fuel goes up and down like a yo-yo,’ said Javier Torres, 65, of Pembroke Pines, Florida, who is unsure he will vote for Biden in 2024 like he did in 2020. ‘It’s been pretty bad, and I was a supporter of Biden, so I don’t know what’s going on,’ said Torres, who is married with three children and manages a warehouse and logistics company in South Florida. ‘Maybe it’s not all his fault ? or it is? I don’t know. But something’s got to give.’” (USA Today, 9/13/2023)

Americans Are Being Forced To Cut Back, Especially Low-Income Families

“But Biden’s policies haven’t erased economic fears, and Americans say they have changed their spending habits.” (USA Today, 9/13/2023)

“Low-income families earning less than $50,000 a year were significantly more likely to say they plan to cut back than earners of more than $100,000. ‘We have all these government statistics pointing to a different story than what people are telling us and the polling,’ said David Paleologos, director of the Suffolk University Political Research Center, who led the poll. ‘It’s vastly different and it poses an immense challenge to Biden as president.’” (USA Today, 9/13/2023)

“Seventy-one percent of poll respondents said they are eating out less; 68% said they are cutting back spending on clothes; 53% said they are spending less on groceries; and 57% said they are putting off home improvements.” (USA Today, 9/13/2023)

  • “Dan McKinnon, of Ludington, Michigan, who owns an assisted living and home care company, said recent pay increases he has awarded his 50 employees have failed to keep up with their cost of living. ‘With the cost of housing and food and everything, they just can’t make it,’ McKinnon said, describing a ‘suffocating’ economy for his workers and seniors who are having trouble affording his services.” (USA Today, 9/13/2023)
  • “Bobbie McGee, a self-employed sign language interpreter from Auburn, Washington, … has adjusted her spending, especially on food. McGee, 70, said she looks for what’s on sale and buys in bulk. And because she travels for work, McGee keeps a close eye on the price of gas. She’s not traveling as far as she used to. The only jobs she takes that require long drives are from a company willing to pay for her travel time instead of just mileage.” (USA Today, 9/13/2023)

Bidenomics Fueled The Worst Inflation In 40 Years, Forcing The Federal Reserve To Implement The ‘Toughest Fed Monetary Policy Since The Early 1980s’

“Central bankers have already raised interest rates to a range of 5.25 to 5.5 percent, the highest level in 22 years.” (“Fed Creeps Toward Next Phase In Its Fight Against Inflation,” The New York Times, 9/19/2023)

The Federal Reserve Has Suggested It May Not Be Done With Interest Rate Increases Because ‘They Haven’t Won The War On Inflation’

“But even if the Fed signals that interest rates have reached their peak, officials have been clear that they are likely to stay elevated for some time. Policymakers think that simply keeping rates at a high level will continue to weigh on economic growth and gradually cool the economy. [Michael] Feroli [chief U.S. economist at J.P. Morgan] does not expect officials to start talking too decisively about the next phase — one in which rates come down — quite yet. ‘They haven’t won the war on inflation, so it’d be a little premature,’ Mr. Feroli said.” (“Fed Creeps Toward Next Phase In Its Fight Against Inflation,” The New York Times, 9/19/2023)

“In recent public appearances, Fed officials have indicated a shift in thinking, from believing that it was better to do too much to bring down inflation to a new view that is more balanced. That’s partly due to perceived lagged impacts from the rate hikes, which represented the toughest Fed monetary policy since the early 1980s.” (“Fed Declines To Hike, But Points To Rates Staying Higher For Longer,” CNBC, 9/20/2023)

Bidenomics’ High Interest Rates Mean ‘Buying A Home Or Car Right Now Is ‘Completely Unaffordable For The Typical American Household’’

“Rising interest rates are hitting Americans’ finances. Consumers in the market for loans to buy homes and cars are discovering that, because of the Federal Reserve’s rate increases, their money gets them a lot less than it would have a few years ago.” (“Americans Finally Start To Feel The Sting From The Fed’s Rate Hikes,” The Wall Street Journal, 9/26/2023)

“Meanwhile, those with credit cards and other loans that carry rates pegged to broader benchmarks are finding they have gotten much more expensive.” (“Americans Finally Start To Feel The Sting From The Fed’s Rate Hikes,” The Wall Street Journal, 9/26/2023)

  • “Ryan Gomez started accumulating credit-card debt in 2020 after he lost his job in food production and started community college to become a psychologist. … ‘The rates are so bad now, you can’t dig out of that hole,’ said Gomez, 38. He eventually worked with a nonprofit to enter into a plan to pay off the $17,000 balance at a discount. Gomez has taken odd jobs to make the monthly $340 payment and delayed purchases such as dish soap. ‘The only place to cut corners is basic human activities,’ he said.” (“Americans Finally Start To Feel The Sting From The Fed’s Rate Hikes,” The Wall Street Journal, 9/26/2023)

‘Borrowers Shopping For Mortgages Or Auto Loans Are Experiencing Sticker Shock’

“Buying a home or car right now is ‘completely unaffordable for the typical American household because you’re mixing the higher borrowing costs with the high prices,’ said Mark Zandi, chief economist at Moody’s Analytics.” (“Americans Finally Start To Feel The Sting From The Fed’s Rate Hikes,” The Wall Street Journal, 9/26/2023)

‘U.S. Mortgage Rates In August Hit The Highest Level Since 2000’ And By One Estimate, ‘The Typical American Family Can’t Afford To Buy A Median-Priced Home’

“Record-low US housing affordability is squeezing homebuyers and renters while threatening to spill into presidential politics.” (Mark Niquette, “Americans Can Barely Afford Homes — and That’s a Problem for Biden,” Bloomberg, 9/18/2023)

“Few buyers are insulated from the challenges. In the suburban county of Waukesha, just west of Milwaukee, home prices have risen almost three times more than incomes while available inventory hasn’t met demand, according to a July report by the Wisconsin Policy Forum.” (Mark Niquette, “Americans Can Barely Afford Homes — and That’s a Problem for Biden,” Bloomberg, 9/18/2023)

“‘It’s very tough to be a buyer,’ said Beth Jaworski, who’s been a real estate agent for 31 years in the Milwaukee area and represents Golab and Rechlicz. ‘I don’t think I’ve ever seen it quite like this.’” (Mark Niquette, “Americans Can Barely Afford Homes — and That’s a Problem for Biden,” Bloomberg, 9/18/2023)

  • “School teachers Maggie Golab, 35, and Jenny Rechlicz, 31, began looking for a starter home in Milwaukee after getting married in July. After looking at 21 houses and getting outbid on three of them, they were finally able to purchase a small bungalow in the Washington Heights neighborhood this month. While they are pleased with the location, they had to bid above the asking price, and were only able to afford the home because the upstairs and basement are unfinished. They’ll have to spend the next few years remodeling to get the livable space they wanted, Golab said. ‘It was definitely very frustrating and kind of heartbreaking,’ Golab said of the home-buying process, noting that prices for homes in certain neighborhoods were way higher than she anticipated.” (Mark Niquette, “Americans Can Barely Afford Homes — and That’s a Problem for Biden,” Bloomberg, 9/18/2023)
  • “Daniel Waddell started looking for a home in St. Paul, Minn., in January. Mortgage rates kept ticking up during his search. He eventually bought a three-bedroom, one-bathroom home this spring after offering over the asking price. His mortgage rate is about 6.5%. Waddell and his wife, Payton Waddell, are deferring other purchases because of the $2,600 monthly mortgage payment. The 25-year-old consultant would like to replace the car he has been driving since the start of college, but he now plans to put off that purchase as long as he can.” (“Americans Finally Start To Feel The Sting From The Fed’s Rate Hikes,” The Wall Street Journal, 9/26/2023)

Meanwhile, Kamala Harris Is So Out Of Touch, She Thinks Young Americans Aren’t Buying Houses Because Of ‘Climate Anxiety’

VICE PRESIDENT KAMALA HARRIS: “This is something that young leaders have actually told me that they’ve coined as a term: ‘climate anxiety,’ which is their fear about the future, right? And so whether they should have children, whether they should ever think about buying a home for fear that it might be wiped out because of extreme weather occurrences. And it pains me that they would live with such uncertainty about what their future can be.” (WFMZ-TV, 9/20/2023)

The Combination Of High Inflation And High Interest Rates Is Also Hitting America’s Small Businesses Hard

CNN: ‘Inflation Woes Persist For Small Businesses As They Struggle To Hire’ (CNN, 9/12/2023)

  • “Optimism among more than 600 small businesses surveyed declined in August from the prior month, snapping a three-month streak of improving sentiment. The August reading was ‘the 20th consecutive month below the 49-year average of 98,’ according to a news release. Expectations of better business conditions over the next six months deteriorated seven points in August from July, a much better reading than last June’s, ‘but still at recession levels,’ the NFIB said.” (“Inflation Woes Persist For Small Businesses As They Struggle To Hire,” CNN, 9/12/2023)

THE WALL STREET JOURNAL: ‘Fed Rate Increases Hit Small Businesses the Hardest’ (The Wall Street Journal, 5/22/2023)

  • “For companies that need to borrow money these days, it pays to be big. The Federal Reserve’s rate-raising campaign has put a notable crimp in financing for companies with smaller payrolls and valuations. The average rate for a loan from the U.S. Small Business Administration, which historically costs less than a bank loan, has reached double-digits, driving many small firms to borrow less.” (“Fed Rate Increases Hit Small Businesses The Hardest,” The Wall Street Journal, 5/22/2023)

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SENATE REPUBLICAN COMMUNICATIONS CENTER

Related Issues: Inflation, Economy