OPINION: This article contains commentary which may reflect the author’s opinion
Most of us have been feeling the effect of the socialist Democrat agenda over the past year. With Biden installed as their puppet, he has done their bidding and purposefully tanked the US economy for the Green New Deal.
Yesterday it was announced that the US officially entered into a recession as GDP has fallen for two consecutive quarters. Biden and his handlers have lied, and continue to lie about how bad the economy is under them but people know because they are having to spend vast amounts more money to buy the same amount of products than they did last year.
American households will spend $5,915 more on everyday items this year than they did in 2021. Inflation is at a 40-year high, and gas prices at the pump are stinging.
In the latest report on U.S. government prices, Moody’s Analytics economist Mark Zandi said that households are spending nearly $493 more each month than they did a year ago.
According to him, this is a ‘big deal for a household making about $60,000 per year’. In the United States, the median household income is $67,521.
Since inflation hit 9.1 percent in August – the highest rate since 1980 – many Americans have had to cut back on basic foods like butter and beef in order to feed their families.
A 0.75 percent rise in the federal funds rate on Wednesday came in response to high inflation, slowing the economy and making it more difficult to pay off mortgages, credit cards, and other debts.
Food and energy markets are roiled by everything from President Joe Biden’s spending spree to sanctions against Russia and the war in Ukraine.
Using the most recent data from the Bureau of Labor Statistics (BLS), The Daily Mail identified the 45 items Americans were spending the most on.
“Some of the biggest hikes are well known — gasoline has jumped by 59.9 percent, and airfares by 34.1 percent,” according to the report.
But other everyday items have also soared in price, including eggs (33.1 percent), margarine (34.5 percent) and chicken (18.6 percent).
Take coffee, as an example. BLS data show that roasted ground coffee sells for $5.79 per pound, as a nationwide average. This past year, the price of coffee has risen 16.8 percent.
Had inflation been under control, that same pound of coffee would sell for $4.70, meaning consumers are losing out to the tune of $1.09.
Similarly, a simple men’s suit now costs $349.00. That’s an increase of 24.9 percent. The same two-piece suit should really cost $267.34, but shoppers are spending $81.66 more.
These factors add up, and low-income families are particularly impacted. In 2020, the median household income was $67,521, Census Bureau numbers show.
One-third of Americans are using credit cards more often to cover the shortfall.
In Illinois, one householder interviewed reported that it was too expensive to have air conditioning in the summer. The price of gas remains high at over $4.30 per gallon, which prevents some from visiting loved ones.
Nearly two-thirds of Americans have changed their motoring habits since March, the American Automobile Association aid in a survey on Monday — by driving less, carpooling, and other cutbacks.
Inflation is the top issue for 24 percent of Americans, according to a YouGov poll on Tuesday. Rising prices were far ahead of the runner-up priority, jobs and the economy, at 12 percent.
The high cost of living has pushed 29 percent of Americans to take up a side hustle — from selling clothes online to taking paid online surveys — according to Insuranks, which ranks insurance firms.
Retailers are also affected by them. McDonald’s and Chipotle Mexican Grill report lower customer traffic due to higher prices. Walmart has cut its profit outlook.
“Online retailer Amazon lost $2 billion in the second quarter but said it expects a jump in third-quarter revenue, pushing its shares up 13 percent in trading after the bell on Thursday,” according to the report.
The Federal Reserve announced on Wednesday that it would increase interest rates by 0.75 percent, pumping the federal interest rate to 2.33 percent as the central bank tries to control surging inflation.
The rate hike will cause interest rates on mortgages, credit cards and all types of loans to go up, causing monthly bill payments to soar and hurting Americans’ ability to repay debts.
While interest on savings will also see a small increase as high as 2 percent, it would do little to relieve consumers amid the rise in cost of living.
During the 12 months through June, the personal consumption expenditures price index soared 6.8 percent, its largest jump since January 1982.
In response to the claim that six months of economic contraction constitutes a recession, the White House argues that the economy remains strong despite the slowdown.
In a statement, Biden said that ‘it’s no surprise that the economy is slowing down as the Federal Reserve acts to bring down inflation’.
‘But even as we face historic global challenges, we are on the right path and we will come through this transition stronger and more secure,’ the note prepared by his socialist handlers read.
Source: The Republic Brief