Three Harsh Realities of Biden’s Cruel Economy
Today, the House Budget Committee held part one in its hearing series on how we can reignite American growth and prosperity.
At our hearing, Democrats tried to paint an extremely rosy picture about President Biden’s cruel economy. The facts don’t support their assertions.
As Chairman Jodey Arrington (R-TX) stressed in his opening remarks: “if we grow our economy while controlling spending, we can create a glide-path to a healthier balance sheet, a stronger economy, and a brighter future.”
The nonpartisan CBO projects the economy to grow by a dismal 0.1 percent this year. If Democrats get their way, it will only get worse.
Here are the three harshest realities of Biden’s cruel economy:
Inflation Has Skyrocketed Under Biden and Is Staying There.
- Inflation under Biden reached a forty-year high. Inflation has risen 15.3 percent since Biden took office, amounting to increased costs for a family of four of $1,128 per month.
- Groceries, utilities, used cars, and household goods have all seen massive price hikes.
Homeownership is Increasingly Becoming Out-of-Reach.
- In January 2021, the average interest rate on a 30-year fixed rate mortgage was 2.7 percent—a record low. It is now 6.4 percent, an increase of 3.7 percentage points.
- Assuming a 20 percent down payment, and an average interest rate of 6.4 percent on a 30-year fixed mortgage, the monthly mortgage payment on an average home is $2,600. This is an increase of $1,300—or double—the cost of a mortgage payment at the lower interest rates and housing prices of January 2021.
Biden’s Inflation Crisis is Crushing American Pocketbooks.
- Real wages have not risen in over two years. In fact, real wages are down 5 percent since Biden took office.
- Democrats want to repeal the Trump Tax Cuts, which would be an immediate tax hike on low- and middle-income Americans.
- The Tax Cuts and Jobs Act reduced tax burdens on typical families by $2,000.
The Bottom Line: Biden’s policies have hurt American pocketbooks. While Democrats may want to celebrate this cruel economy, their policies will only make matters worse.